Preferred shares in Advanced Mortgage Investment Corporation (or “AMIC”) are the sole exempt market product offered for sale by Advanced Capital Corp. (or “ACC”).
AMIC and ACC are related and connected companies by virtue of common ownership and control. This means that ACC is a “captive dealer” in that it sells a product that is controlled by the same ownership group.
Because ACC is a captive dealer, potential investors should note that there is an inherent conflict of interest in the captive dealer model. This conflict of interest is managed, in the case of AMIC, by having a board of directors the majority of the members of which are independent of the ownership group of AMIC and ACC.
