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by Stockwatch Business Reporter

The TSX Venture Exchange added 10.92 points to 822.28 Tuesday. Shell packagers Robert Munro and Marc Lavine have found a qualifying transaction for their halted capital pool shell, Chrysalis Capital IX Corp. (NYN). It plans to acquire Inspira Financial Inc., which lends money to small U.S. health care companies secured by their accounts receivable.

The shell will acquire its target for an unstated number of shares. Two Chrysalis Capital IX directors, Mr. Munro and Michael Dalsin, along with Roger Greene and Jack Eskenazi, founded Inspira last year. It offers lines of credit for between $500,000 (U.S.) and $5-million (U.S.) to health care companies in the United States that have revenue of less than $50-million a year. The loans are secured by accounts receivable, but only government and big insurance receivables, which Inspira considers to have the lowest loan default risk (although waiting for insurance companies to pay can often take a long time). Inspira says there are more than 250,000 prospective borrowers in the U.S. and it optimistically "believes it can generate double-digit returns on government (Medicare/Medicaid) and large health care insurance receivables." It expects to charge a borrower between 10 per cent and 20 per cent, including interest and fees. Inspira is aware that a traditional bank can lend money at a lower rate, but it points out that banks require all the assets of a business and some times personal assets of an owner as collateral. As well, it often takes a bank two months or more to approve a loan. Inspira to the rescue. It claims it can process applications in one week and it only requires accounts receivable as collateral. There are no financials available yet to see if Inspira is making money from its formula.

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