Category Archives: Investments

TSX Worried About Pot Companies with US Business Exposure

A ripe & healthy cannabis plant. Photo courtesy of Cannabis Training University.

The struggle over the legalization of marijuana in the United States has created a bit of uncertainty in the Toronto Stock Exchange’s relationship to US companies that produce the mind-stimulating drug.

Aphria Inc, an Ontario-based producer of marijuana says it met with representatives of the TSX a week ago to talk about the company’s exposure to US markets and the risk that exposure subjects the company to.

Vic Neufeld, CEO of Aphria, said that the company re-committed to working with the TSX as it carefully studies the developments in the United States as they happen. Earlier in October the TSX warned companies that the US federal laws take precedence over the state laws, and, at least right now, federal US law holds marijuana to be an illegal substance. The potential for economic trouble exists for companies like Aphria which have investments in Florida and Arizona, where marijuana is legal for medicinal only and recreational use, respectively.

The TSX said that companies on their exchange that do not comply with US federal law are not in compliance with their requirements to be listed on their exchange.

Neufeld said that he would like to see his company remain on the TSX, and right now has no plans to move Aphria to the more pot-friendly Canadian Securities Exchange. However, if an agreement with the TSX can’t be reached Neufeld said there are other options, such as creating a spin-off for its US business which can be listed separately on the CSX.

Stay Financially Healthy With Professional Financial Advisors

Individuals and families should consider taking charge of their financial situations to reach their material goals in life. Most people would like to save for retirement, many would like to secure the ability to pay, at least partly, for their children’s college educations. Others plan and save for vacations, purchasing a home, or a host of other things which can take a substantial bite out of their monthly incomes.

Financial service companies, such as Essex Financial in Essex, Connecticut, can help people clarify their goals and set up savings plans that will help them reach them.

Saving for retirement is something highly recommended, and which many people take responsibility for. Although some people choose to handle their own retirement plans, many others turn to professionals like Essex Financial to help them manage investments, understand new tax laws which can affect their bottom lines, and other complex issues that most working people simply don’t have the time or expertise to focus on successfully.

Financial planners are trained professionals that have at their fingertips large amounts of information that a layman would need hours of research to discover. Once financial goals are clarified, then the advisor can recommend actions on how families or individuals can meet those goals. He or she will know how investments should be allocated, how much and what kind of insurance is needed, and how certain actions affect the individual’s tax bill or estate.

Just as someone would not diagnose or try and treat an illness without the help and advice of a qualified medical professional, so too people should seek the help of a financial professional to help them maintain excellent financial health, all throughout life.

 

Silverfern Holds 2017 Annual Meeting, Provides Overview

The Silverfern Group, co-managed by Clive Holmes and Reeta Holmes, has released its investments from 2016 at its 2017 Annual Meeting, providing an overview which revealed five new investments, three follow-on investments and three exits.

“Silverfern’s two largest, global networks- our base of investors spanning five continents and 23 countries, and our network of more than 50 operating executives and local operating partners- again provided us with a flow of private, off-market information that created unique investment opportunities,” Silverfern’s Clive Holmes said at the event. “We continue to add global diversification to our portfolio, while at all times remaining an informed, local investor.”

The new investments were in private equity and real estate, and included positions in the recapitalization of Temp RiverPark Apartments and the acquisitions of APR Energy plc, Continental Bakeries, Broad River Power Holdings and the Waste Services Group.  The firm also made three follow-on investments into APR Energy, O-Tex Holdings, Inc. and Sequitur Energy Resources, as well as three investment exits.

 “2016 proved to be extremely productive for Silverfern as we made five new platform investments, three follow-on investments, and achieved three investment exits globally,” said Reeta Co-Managing Partner Reeta Holmes. “The pace of our investments in middle market private equity, real estate and private debt globally has been accelerating, and we expect it will continue in 2017.”

 

GE and Saudi Arabia Forge $15 Billion in Deals

In the wake of President Trump’s visit to Saudi Arabia, General Electric announced it will sign $15 million worth of business deals to help diversify the Kingdom’s economy away from oil.

GE announced last week at a conference of senior US business executives with their Saudi counterparts its intention to deal with the desert Kingdom to help it diversify.

The agreements are worth about $7 billion in goods and services from GE itself. The range from utilities to healthcare; the oil industry, mining, and natural gas. Some of the deals are still in the form of memos and will need further negotiations to come to fruition.

One of the GE projects will guide power manufacture in Saudi Arabia to become more efficient and also offer digital technology to the operations at Saudi Aramco. The hope is that this project will ultimately create $4 billion in annual productivity increases at Aramco. It also hopes to cooperate in training and medical research.

Philips Sale of Lumileds Waiting for CFIUS Approval

The Dutch-based electronics company Philips says that its sale of a sub-company called Lumileds for $3.3 billion is now being scrutinized by a group called the Committee on Foreign Investment in the United States.” According to the Philips third-quarter results, the CFIUS has “expressed certain unforeseen concerns” which made the sale of Lumileds uncertain.

Lumileds manufactures LEDs and car components, and also owns many LED patents.
Philips is selling an 80.1 percent stake in Lumileds to a consortium of mostly investors from China. The consortium is called Go Scales and is made up of GSR Capital, Nanchang Industrial Group, and Asia Pacific Resource Development, all of which are based in China.
The sale was announced in March and is part of the company’s plan to better concentrate on consumer goods and its medical technology business.

Philips said that it will “continue to engage with CFIUS and will take all reasonable steps to address its concerns” but did not give any details about what those concerns are and in what way they will be engaged.

“Our operational performance continues to strengthen, despite deteriorating macro-economic conditions in a number of markets, most notably China,”  said Philips chief executive Frans van Houten.