FLYHT Featured In Calgary Economic Development Marketing Campaign

FLYHT was recently selected by Calgary Economic Development as one of a handful of companies to promote its national “Be Part of the Energy” marketing campaign.

The Canada-wide campaign launches this weekend and runs through late November. There will be full print and social media advertising associated with the campaign, which focuses on non-oil and gas or “countercyclical business opportunities in Calgary.”  

Specifically, look for a “teaser” on FLYHT in today’s (October 14th)  Globe and Mail and the National Post and again in the Globe and Mail on Friday, November 4th.

To see the feature on FLYHT please click here

TMX Group Interviews LGC Capital Co-Chairman Mazen Haddad

QBA:TSX-V

The TMX Group very recently posted an interview with Mazen Haddad, Co-Chairman of LGC Capital in which he provides a compelling business case overview for the multi-strategy Cuban focused investment company.

Here are some key highlights from the interview.

  • “We see a lot of potential in Cuba. It will allow investors a chance to get exposure to Cuba because there isn’t really another place to go for that type of exposure.”
  • “The major growth opportunities are driven by the warming of relations between the U.S. and Cuba. The U.S. consumer and tourists coming to the island are driving a lot of new growth opportunities in Cuba.”
  • “Our investors have a lot to look forward to in the next year, year and a half. There’s going to be a lot of events for sports, and it’ll be exposure to multi-national events in Cuba on sports. We already announced the October 7 friendly between the U.S.A and Cuba, in a few months there will probably be a baseball game as well and go on and on from there. The other opportunity that we are very excited about is developing the coffee crop with Cuba Mountain Coffee and Nespresso. Nespresso has expressed a deep interest in progressing with Cuba Mountain Coffee, specifically to supply the North American market.”

To view the full interview, see below or click here.

An Interview with Argex CEO, Mazen Alnaimi – Why He Invested $1.2 Million

“A significant amount of work is done and I think a lot more will become apparent in the next 30-60 days.”

“We’ve pretty much seen every up and down” is the way The Howard Group thinks about Argex Titanium since we first invested five years ago and formally began working with the company in early 2012. It should have been one of the darlings on the TSX Exchange. It had all the potential to become a blue sky dream story, but reality dealt investors a harsh hand.

We have experienced the good times, such as when the company announced a key relationship in 2012 with PPG Industries, through the meltdown that occurred in 2015, after the previous management team failed to secure funding for a full scale production facility. The company was on life support and the prognosis was grim.

Following a great deal of behind the scenes work lead by Board member, Mazen Haddad, and with the timely help of some key individuals and relationships, the patient opened its eyes in 2016. While the full extent of the recovery remains to be seen, the company has survived a near death experience.

The team that brought Argex back to life are of the opinion that yes, not only will there be a full recovery, but the patient will be “better than new.”

We know that shareholders (we and many of our relationships) have multiple questions. In a detailed 30 minute interview, Grant Howard, President of the Howard Group recently spoke with Mazen Alnaimi, Argex’s new CEO and Chairman of the Board.

Below we have provided the key topics and some excerpts:

  • Details on Mr. Alnaimi’s background: “I started many chemical companies one of which is Chemanol, which I started about 20 years ago as a small investment of one and a half million dollars and have it grown it to a seven hundred million dollar public company.” Click here for more bio details.
  • Due diligence leading up to personal investment of $1.2 million: “I actually dedicated six months evaluating Argex and its technology and I was trying to figure out exactly what went wrong. The conclusion was there was enough merit in the company and its technology to invest.”
  • Perception of the technology: “The fundamentals associated with the technology are solid and the mistakes that were done before are correctable and having been there, done that, I felt that there is a risk, yes, but the risk can be mitigated and that coupled with the fact that I have a very solid team working with me and they worked with me before the past fifteen years that we felt very confident that we can tackle anything that comes our way from the technical point of view and the implementation point of view.”
  • Improvements in the technology: “First of all, we have looked at what has been done before at the lab scale and the pilot plant scale and we have changed a few parameters of the process and that has yielded significant result improvements. We have also applied proper engineering practices and we were able to reduce, by harnessing the energy and converting the energy within the process to improve on the on the cost efficiency and advantage.”
    “But  based on the improvements we have done at the lab scale and the product we are getting now, I feel very confident that we will be able to produce what is required by PPG and other world class paint manufacturers would require.”
  • His financial modelling of the process: “Slight variation but our numbers confirm what the previous management has suggested. But our approach to reach there is different from what they had envisioned… And even better.”
  • Status of Relationship with PPG and HELM: “PPG is very much at the table with us. We’re in constant communication with them, and they are very keen on our technology and having us a part of their supply chain. As far as HELM, we have certain agreements in place with HELM. And they’re an international offtaker and they are part of multiple sources where we can offtake our product to many international companies.”
  • Performance warrants and the milestones management must achieve to earn them:First of all, for restarting the company, a certain percentage to be given at that time and restarting the lab activities and achieving the requirement for the company to function as a legal entity meeting its obligation. The second milestone would be to achieve the product consistency at the lab scale and get the gross product approved by prospective buyers and the third one would be to complete the basic engineering package. The fourth one would be to complete the detailed engineering feed package.”
  • Timeframe to achieve the milestones: “My expectation is that within the next 45 days we should get  the consistency on the product and we should start the basic engineering package by  the end of the year  and we should start working on the feed package in the second quarter of 2017 and we should complete the other thing by the third quarter of 2017, ready to build the plant.”
  • Mr. Alnaimi’s perspective on the issues of getting financed in the past: “We put those milestones and we make it very transparent to the market….what we are trying to achieve now. We’re going to achieve it. So we will not jump two  steps forward and  go back one step. It’s that we have to make sure that consistency is made at the lab scale and the pilot plant and is also approved by our buyers.”
  • Rationale for initially building a 25,000 tonne / year plant: We wanted to derisk the engineering developmental process. I think 25,000 tonnes is a lot less riskier than going immediately to a 50,000 tonnes. So eventually we will reach 50, 75 and 100,000 tonnes based on building parallel trains based on the success of the first 25,000 tonnes plant. ”
  • Response to question on possibility of consolidation of shares: “We don’t see any reason for consolidation at this stage … We have done some financial modeling on that and I think when we look at the net present value of the stock right now based on the future earnings, there is a sizable appreciation if it all goes well.”
  • Mr. Alnaimi on the dream of disrupting the Titanium Dioxide industry:Definitely, definitely, otherwise I wouldn’t have invested in it. I think you’re looking at an industry that is valued around anywhere from 15-18 billion dollars per year. You’re looking at a technology that has been no significant advantage – no significant improvement has been done for the past 30-40 years. The cost is very high and the market needs a new player with a greener technology and I have to be careful when I say greener technology, and also a more cost advantageous structure. And that’s what Argex is promising to deliver. And I think Argex is not looking purely at building a 25,000 tonnes plant or a 50,000 tonnes plant or a 100,000 tonnes plant. We’re looking at expanding the technology to other areas of the world, geographical areas of the world. ”
  • In closing: “I would like to assure you again that we have achieved- there was significant achievements in the last couple of months since we took over. We took over about the middle of July and I’d have to say that we are almost 2/3 complete with our technology and we have significant achievement of us satisfying the TSX and getting clearance and approval to continue listing on the TSX exchange. We were able to reduce our payables by 70%, we have reorganized, done our cash flows, budgets, resolved issues with our mining properties and we are now completed a corporate teaser that will go to investors. So a significant amount of work has been done and completed in 60 days and that even astonishes me myself because I didn’t believe that we would be advancing at that stage, at that fast pace and you know we are happy to be able to do what we have been able to do and I think a lot more will become apparent in the next 30-60 days.”

To listen to the full interview, see below or click here.

KeyStone Initiates Coverage On CEMATRIX With A SPEC BUY

Keystone Financial has been following CEMATRIX closely for some time. Based on financial results from a stellar 2015, analyst’s Ryan Irvine and Aaron Dunn believe the inflection point has come and it was time to introduce CEMATRIX to its audience of investors.

We quote from the report, “CEMATRIX’s 2015 was a record for the company both in terms of revenues and profitability. The company earned $0.046 per share and with its current trading price in the $0.37 range, its trailing PE is a multiple of around 8. Given the growth the company is forecasting in terms of a potential revenue bump to the $25 million range, the stock would appear cheap. Having said this, the revenue growth will not come without near-term costs and the forecasts are not without risk.

The initial research report recommends that its readers should acquire a starting position in CEMATRIX at current prices  with the intention of filling a full position over the course of the next 3-12 months.

CEMATRIX continues to focus its sales efforts in the ever growing infrastructure market and KeyStone believes that if success in this market continues, then 2017 sets up as a “breakthrough” year.

To read the full report, please click here.

LGC Capital CEO David Lenigas Interviewed By Midas Letter/Financial Post

QBA:TSXV

The Midas Letter, which is featured in the online edition of the Financial Post posted an interview with David Lenigas, the CEO of LGC Capital. The interview provides insight into Mr. Lenigas’ Cuban multi-investment conglomerate.

Key topics in the interview include the following:

  • What first attracted Mr. Lenigas to Cuba,
  • His success discovering oil in England, the “Gatwick Gusher” which led him to invest in MEO Australia and its Cuban Block 9. “The company has identified, just in one of the three plays, eight billion barrels oil in place and 395 million barrels recoverable prospective resources.”,
  • The recently announced historic USA vs. Cuba soccer match and the fact that ESPN and RTV will be broadcasting the event,
  • LGC’s interest in the substantial Cuban coffee (partnership with Nespresso) and citrus fruit import/export business,
  • How Nigel Rushman approached Mr. Lenigas on the potential for Cuban sports promotion around the world,
  • The bespoke (high end customized) travel business, InCloud9, which is already cash flowing for LGC and growing very rapidly, having recently doubled in size.

To listen to the full podcast, please click here.

LGC Capital: Nigel Rushman Interviewed On “Taking Cuban Sport To The World”

QBA:TSXV

LGC Capital and its 50/50 joint venture (JV) partner Rushmans were featured in SportsPro Media a U.K. based premier sports news magazine. Nigel Rushman, the founder and visionary for Rushmans spoke to SportsPro about the recent announcement that Rushmans Cuba (JV with LGC) secured the rights to distribute, market and co-produce Cuban sports content and events to the international marketplace. Of specific interest to investors, he also discusses how he first got involved with LGC Capital.

This week Rushmans Cuba announced its first Cuban sports event. It will be marketing broadcast rights and advertising a historic friendly soccer match between Cuba and the U.S. in Havana, Cuba on October 7, 2016. See news release here.

To read Mr. Rushman’s full interview, please click here.

About Nigel Rushman

Nigel Rushman’s experience spans over 30 years with interests in various international trades and projects, including steel, infrastructure, equipment, manufacturing, hotels, catering, marketing, property, digital and sport. In addition, he has developed and implemented innovative programmes for over 500 events in 30 countries, including three Rugby World Cups and three Cricket World Cups amongst numerous other projects.

In his role as Founder of Rushmans, Nigel was contracted as Event Director of the ICC CWC West Indies 2007 Inc. with the responsibility of implementing the Event Management, Security, Media Management, Accreditation and Volunteer Programmes for the Cricket World Cup across the nine participating countries in the Caribbean region.

Most recently Nigel had the pleasure and privilege to be part of the innovative and highly professional team, which made history by winning Qatar the opportunity to host the FIFA World Cup in 2022.

Alex Ruus On BNN – FLYHT “If You Don’t Own It, Own It Here.”

FLY:TSXV

FLYHT shareholders have seen a massive surge in volume this morning. We believe the catalyst was last evening’s appearance by Alex Ruus, Portfolio Manager at Arrow Capital Management on Canada’s Business News Network (BNN). In response to a caller’s question, Mr. Ruus outlined why he thinks FLYHT “is really cheap and a great buy going forward here.”

Here are some of his key points:

  • “The stock has been in a bottoming process for the last six months now. Despite the last couple of quarters they are hitting new record sales.”
  • “The market is completely ignoring this. I think it has to do with the stock has been around for ten years and things have taken longer to develop than was expected.”
  • “We think it’s really really cheap and we think it is a great buy from here going forward.”
  • “They brought in a new high-profile CEO in the last year. They just had their first profitable quarter in history and we think things are getting better going forward.”
  • “We think this could be a really good performer over the next year and I would own it.”

To watch the full interview, please click here.


Shares Outstanding: 207,393,766
Options: 11,087,067
Warrants: 20,127,792
Shares Fully Diluted: 238,608,625

LGC Capital – A Cuban Revolution Is Underway

by Dave Burwell and Grant Howard

QBA:TSXV

opportunity

The reasoning behind why we chose the side quote will become very clear as you read The Howard Group’s introductory commentary to its newest client, LGC Capital Limited.

We encourage readers to put LGC Capital Limited on your watch list.

In March of this year, Barack Obama became the first sitting U.S. president to visit Cuba since the 1959 revolution, which is when tensions began escalating between the two countries. The BBC stated in an article, “For a U.S. president to touch down at Jose Marti airport in Havana and be warmly greeted by Cuba’s foreign minister was until recently unthinkable.”

The U.S. embargo for more than five decades prevented citizens of the United States from travelling to Cuba and U.S. companies from doing business in the country.

This past March, Mr. Obama stated, “Change is going to happen in Cuba”, which was soon followed by the lifting of a number of the impediments to doing business with Cuba and travelling to that country.

LGC Capital – Way Ahead Of The Cuban Curve

LGC is a truly diversified Cuban focused organization, which is at the front end of a rapid and significant revenue ramp according to management in recent discussions with members of The Howard Group. We are looking forward to the day that forecasts are formalized, especially in relation to 2017. We do like the ticker symbol; QBA.

LGC Logo BlueWhen we use the word “diversified”, it’s not a stretch as LGC has a variety of interests in oil and gas, tourism, agriculture, trading, renewable energy and corporate consulting. The Company uses the Cuban hummingbird as it’s logo. It’s only the size of your thumbnail but moves quickly and is industrious. Such is the nature of LGC.

While LGC Capital was only incorporated in March 2015, there was a singular catalyst behind establishing a corporate entity. Founder and well known international entrepreneur David Lenigas had identified a number of Cuban business opportunities in conjunction with his personal relationships that have been “on the ground” there for many years.

As Mr. Lenigas has developed a hefty following based on past successes in the public market, he listed LGC Capital (then known as Leni Gas Cuba) on the ISDX Exchange in the United Kingdom in mid-2015. In July of this year, LGC began trading on the TSX Venture Exchange (QBA) following an RTO of Knowlton Capital. It was founded by Mazen Haddad, a name familiar to many who followed the Argex Titanium story through HG commentaries. Mr. Haddad played a key role in the recent turnaround and restructuring of that troubled company, once a darling and “dream” amongst a broad investing base.

Both gentlemen are residents of Monaco, and as they have mutually invested in different ventures over the years, there was a well-established relationship. They are Co-Chairmen of LGC.

Management say they moved the listing to Canada because Canada gets Cuba. A third of the visitors to the Island nation hail from Canada and Canada is one of Cuba’s largest trading partners.

David Lenigas – The Main Driver and Co-Chairman and CEO

David Lenigas has extensive experience operating in global public markets having served in a senior executive capacity on many public company boards. He served as the Executive Chairman of London and US listed Rare Earth Minerals Plc until December 2015, and was responsible for the company’s significant involvement in the discovery of the Sonora Lithium Project in Northern Mexico with its joint venture partner Bacanora Minerals Limited and their entry in to Europe’s largest lithium deposit at Cinovec in the Czech Republic. He is no stranger to the Canadian markets, having recently served on the Board of Baconora Minerals (TSXV: BCN; BCN:LN) and he is also a director of Macarthur Minerals Limited (TSXV: MMS) in which REM is their largest shareholder.

Mr. Lenigas is also well versed in emerging markets, having served as Executive Chairman of London main board listed Lonrho Plc for six years until September 2012 and was responsible for its rebuilding and expansion back into more than 17 countries in Africa in sectors covering agriculture, infrastructure, hotels, IT and aviation. He is still actively involved in Africa, serving as Executive Chairman of global logistics group AfriAg Global Plc (AFRI:PZ), moving perishable food all around the globe.

His experience with oil is significant, having been responsible for the large oil discovery at Horse Hill near London’s Gatwick Airport over the past years, serving as Executive Chairman of London listed UK Oil & Gas Investments Plc (UKOG:LN) and still heads up a Horse Hill partners as Executive Chairman of Doriemus Plc (DOR:LN).

Mr. Lenigas holds a Bachelor of Applied Science (Mining Engineering) with Distinction from Curtin University’s Western Australian Kalgoorlie School of Mines and also holds an unrestricted first class mine manager’s certificate from the Western Australian Government.

Mazen Haddad – The Canadian Corporate Man and Co-Chairman

Mazen Haddad is a private investor and previously held the positions of Chairman, President and Chief Executive Officer of the Company. Mr. Haddad holds a B.A. degree in economics from Emory University of Atlanta, Georgia.

Mr. Haddad is Interim President and Chief Executive Officer and a director of Argex Titanium Inc., a company listed on the Toronto Stock Exchange. Mr. Haddad was President of Township Capital Inc., a private company whose primary role was to act as a consultant for Palos Capital Pool, L.P., from 2006 until 2010. Prior to that, he served as Chairman of SGI Properties Canada Fund L.P., a private real estate investment trust (REIT) focused on residential real estate in Montreal, Québec, and as Vice-President of SGI Capital Corp., a private investment company.

Corporate Structure:

Shares Outstanding: 234,045,321

Warrants: 1,976,000

Exercise price – $0.2321, Expiry – November 2, 2022

Options: 39,982,678

1,982,678 – Exercise price: $0.064, Expiry: November 1, 2018
4,000,000 – Exercise price: $0.09284, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.2321, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.4642, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.6963, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.9284, Expiry: November 2, 2018
18,000,000 – Exercise price: $0.2325, Expiry: December 31, 2020

Fully Diluted:  276,003,999

Debt:  Nil

Insider Ownership: 50%

David Lenigas – 57.2 million shares
Mazen Haddad – 9.5 million shares

LGC Partnerships and Investments

The key takeaway is that LGC wasn’t established to look for opportunities in Cuba; it was established to take advantage of the roots that were already firmly planted in the Caribbean nation. The forward thinking is evident based on the below graphic that displays the nature and ownership of LGC’s diversified interests in Cuba.

Management says that the best way to grow a business focused on Cuban growth metrics is to be a broad based diversified conglomerate. Some of the most successful companies in the world adopt this conglomerate approach to spread the investment risk.

QBA3


MEO Australia and Petro Australis
Multi-Billion Barrels Of Oil Opportunity

meo-logopetro australis

In February 2016, LGC made a strategic investment in Cuban oil explorer MEO Australia Limited (“MEO”), a company incorporated under the laws of Australia and listed on the Australian Securities Exchange (ASX). LGC is the single largest shareholder of MEO, with a 15.8% interest.

MEO is pre-qualified as a foreign onshore and shallow water operator in Cuba, and in September 2015 was awarded a 100% interest in the 2,380 km2 onshore oil block, Block 9 Production Sharing Contract (“Block 9 PSC”), located on the north coast of Cuba, 140 km east of Havana and along trend with the multi-billion barrel Varadero oil field. Click here for more information on Block 9.

There are only two foreign listed companies actually approved to work in Cuba in the oil sector: Sherritt (TSE.S) and LGC. This is the unique opportunity here, as entry barriers to get in to Cuba are onerous.  So MEO have a great first mover advantage.

Cuba needs a lot more oil to run its growing economy. 96% of Cuba’s energy comes from oil and they are struggling to meet refinery demand due to recent problems with Venezuela and their supplies of 50% of crude to keep Cuba running smoothly.

LGC also holds a 15.14% interest in Petro Australis (private), which holds a conditional 40% back-in option to Block 9 PSC, the investment by LGC in MEO significantly increased LGC’s underlying interest in Block 9 PSC.

In regards to potential, MEO Australia reported in July that, “The first of three identified oil plays on Block 9 has been assessed by MEO to contain 8.183 billion barrels of Oil-in-Place with a Prospective (Recoverable) Resource of 395 million barrels (Best Estimate, 100% basis) of potentially high quality light oil.  Further work on the other shallower oil plays, which also have significant oil potential, is continuing, and will be reported on as available.” Click here to see the news release.

And not only does MEO have a “high potential” great oil play in Cuba, it’s  also hunting two “elephant size”  oil and gas plays in Australia. Beehive is a multi-billion barrel play off the Western Australian coast and the big Tassie Shoals LNG and Methanol Projects have just had their environmental approvals extended to 2052.

Today the market cap of MEO Australia is approximately $43 million. As of this writing LGC’s ownership is worth over $6.8 million CDN which is a five-fold increase from LGC’s entry level. There’s no doubt that big international play’s can create fortunes but patience is required.



The InCloud9 Group
Facilitating Travel To Cuba For Wealthy U.S. Travellers

IC9new-logo-B-full

In September 2015, LGC acquired 40% of the issued share capital of Travelwelcome Ltd., which in turn acquired 100% of inCloud9, another Cuban travel operator. The whole group now runs as inCloud9. Through its representative office in Havana, inCloud9 provides the services of a specialist Cuban ground handler which works with other specialist travel companies around the world to assist with tailor-made trips to Cuba for their clients. This includes booking local hotels, transport, local tours and guides, as well as other specialist activities such as art tours, horse riding, deep-sea fishing, fly fishing and scuba diving. In addition, inCloud9 has the capacity to assist with the organization of special events including conferences and weddings, and group activities around Cuban festivals such as the Cigar Festival and Film Festival.

tourists-on-beach-in-cubaCuba is experiencing a tourism boom that isn’t going away. Whether it’s the allure of sampling one of Cuba’s fabled freshly rolled cigars or sipping minty mojitos in one of Old Havana’s speakeasy-style bars, approximately 3.1 million people infiltrated the Caribbean country’s post-communist borders in 2015, a 17.6% increase compared to the same time last year.

Cuba’s Office of National Statistics: Canada – or those travelling through, maintains the lion’s-share of Cuba’s tourism with over a million visitors in 2015. But the Americans are starting to come. And when America comes, it doesn’t just drizzle, it pours.

Eight U.S. carriers, most with flights departing from the Miami and New York metropolitan areas received tentative approval from the Transportation Department in July 2016 to operate direct flights to José Martí International Airport in Havana. They should start flying at the end of the Summer.

The opportunity – Because of the embargo, United States citizens have been prevented from vacationing in Cuba. They still can’t. But they can come on one-on-one “cultural” exchange visits. According to LGC management, this is changing fast and American business scouting and cultural tourism is quickly rising.  inCloud9 is one of the few foreign operators with a physical full-time presence in Havana. It operates throughout Cuba, facilitates travel into and around Cuba and manages many events and movie/documentary shoots.

Although U.S. tourism to Cuba was low during the embargo, the U.S. boom has started. Management tells us that since LGC acquired its ownership interest, the business is already experiencing impressive growth with a multi-million-dollar turnover in this business. Recently, LGC management talked about a number of major events it will host  in Cuba including  facilitating movie and documentary productions,  and handling all arrangements for world renowned recording artists who will  come to Cuba for performances or just a vacation.

It’s an understatement that management is enthusiastic as it tells us that a number of these larger projects generate hundreds of thousands of dollars in profit for inCloud9. On some occasions, inCloud9 has hosted hundreds of tourists in the Country at any one time. LGC is gearing up in Havana for growth and potential further acquisitions.

As we don’t have management forecasts in hand as of yet, quantification of future expectations is a key point that potential investors will be awaiting.


Rushmans Ltd. Joint Venture
Bringing The World Of Sports To Cuba

Logosquare100

In April 2016, LGC entered into a 50/50 joint venture with Rushmans Ltd (the “Rushmans Cuba JV”) to explore the opportunities available for international entities to participate in the development funding for Cuban sport.

The Rushmans Cuba JV possesses an exclusive license to use the Rushmans’ brand and intellectual property in respect to Cuban sporting opportunities, including assisting Cuban sport associations to build upon its massive potential from social/grassroots to international competition level.

Rushmans – http://rushmans.com – has more than 25 years of experience in world sport and has advised and supported sports governing bodies and played a key role in planning and delivering a host of major events including European Championships in Football and World Cups in Cricket and Rugby. Rushmans has also acted as a strategic advisor to sport and corporations worldwide.

Nigel Rushman’s experience spans over 30 years with interests in various international trades and projects, including steel, infrastructure, equipment, manufacturing, hotels, catering, marketing, property, digital and sport. In addition, he has developed and implemented innovative programmes for over 500 events in 30 countries, including three Rugby World Cups and three Cricket World Cups amongst numerous other projects.

public-domain-images-archive-high-quality-resolution-free-download-splitshire-0008-1000x666-1818x628In his role as Founder of Rushmans, Nigel was contracted as Event Director of the ICC CWC West Indies 2007 Inc. with the responsibility of implementing the Event Management, Security, Media Management, Accreditation and Volunteer Programmes for the Cricket World Cup across the nine participating countries in the Caribbean region.

Most recently Nigel had the pleasure and privilege to be part of the innovative and highly professional team, which made history by winning Qatar the opportunity to host the FIFA World Cup in 2022.

The opportunity – Cuba is coming in quickly coming in from the cold  and sport is an untapped market that could add significant hard currency revenue. It was Nigel Rushman who assisted Qatar win the FIFA World Cup in 2022. Rushmans Cuba is well connected to the global world of sport and the opportunities for sport in Cuba are immense. If Rushmans Cuba can assist the Cuban bring world class events to Cuba, the JV could receive a percentage of the ticket sales, television broadcasting fees, merchandise, etc. A single event could generate hundreds of thousands of dollars for LGC and significantly more for the Cuban Government. The opportunities are considerable.  


Groombridge Trading Corp. Joint Venture
Opening Up Trade With The World

GTCorp-Logo

In November 2015, LGC entered into an agreement with Cuban-centric trading company Groombridge Trading Corp. (“GTC”) to form a 50/50 joint venture (the “GTC JV”) designed to expand GTC’s existing business of supplying products, machinery and equipment to the fast-growing Cuban tourism sector and exporting agricultural products from Cuba.

GTC, established in 2013, is a Canadian corporation that is approved to trade in Cuba by the Cuban Ministry of Foreign Trade and Investment and the Ministry of Agriculture, and is further authorized to trade with other Cuban Government entities.

working_in_cubaLGC assists GTC with its existing order book of imports for the hotel and tourism sector and will become a financial partner in new business moving forward. The GTC JV has an exclusive first right of refusal to participate on a deal-by-deal 50/50 basis in any current and new transactions originated and operated by GTC. In addition to growing GTC’s current trading activities, the GTC JV also works with GTC to develop a number of agricultural projects and initiatives currently under negotiation in Cuba and assist with new export orders of agricultural products to Europe and Canada.

In March, the joint venture announced its first import contract, which was worth approximately $30,000. Click here to read about the opportunity. Cuba imports 70% of what it consumes, which means it needs to import over $2 billion dollars’ worth of goods to feed the rising economy. Chris Murphy who runs GTC, has been in Cuba since the early 1990’s and was the boss of ED&F Man’s sugar business in the country. Management feels the import/export opportunities are such considerable size that GTC will be a top gem in its Cuba portfolio.  


Cuba Mountain Coffee
With Nestle Bringing Cuban Coffee To The U.S.

logo

In June 2016, LGC acquired a 10% interest in The Cuba Mountain Coffee Company Ltd (“CMC”), an English company founded in 2013. CMC will promote on a worldwide basis, single-origin gourmet coffee from Cuba’s famous Guantanamo Region, both as green beans and also via CMC’s own bespoke coffee brand, “Alma de Cuba”.

In July 2015 LGC announced the following:

“The Cuba Mountain Coffee Co (CMC) has achieved a milestone in its negotiations with the Cuban authorities and is now hopeful that its coffee project in the Cuban province of Guantanamo will begin in 2017.”

“A visit to Guantanamo by CMC directors in June resulted in agreement on the principal terms for co-operation with the Asdrubal Lopez coffee processing plant in Guantanamo, CMC’s counter-party in Cuba. Crucial approvals have already been achieved and the project is now in its final negotiating stage before ministerial presentation, expected before January 2017.”

nestle_ao_altoIn June of this year, Nespresso USA announced it (and CMC) will bring back Cuban Coffee to the United States for the first time in more than 50 years. See news release here.

In April 2016, CMC also signed a Memorandum of Understanding with Nestlé Nespresso with the ambition to explore how to work together with the nonprofit organization, TechnoServe, to boost production and quality in some of the Guantanamo micro-regions for the benefit of Cuban farmers and the protection of their environment, subject to the approval of the Cuban authorities and compliance with applicable laws.

CMC has already established an E-commerce website, www.almacuba.comfor its Gourmet coffee brand, “Alma de Cuba” and retails its coffee through major retail outlets.



Commercial Funded Solar Joint Venture
Solar and Renewable Infrastructure for Cuba

cfsolarworld1

In 2014, Cuba set a target of producing 24% of its electricity from renewable sources by 2030. Solar will be a large part of this initiative due to the abundance of sunshine in the country.

In May 2016, LGC entered into an agreement with UK Solar power and storage specialists, Commercial Funded Solar Ltd (“CFS”), designed to assess the potential for installing and operating renewable energy and hybrid power solutions (solar power, energy storage and integrated power management systems) in Cuba.

solar cubaCFS is a UK based multinational company with operations in the UK, Africa and South America, specialising in the installation of medium sized commercially funded renewable power and storage systems of between 30kw and 1MW each. CFS is currently focused on delivering a large number of investor funded commercial systems to Academy and School Groups in the UK public and private education sector, as well as providing a commercially funded model for investors wanting a higher return short-term (1-3 year) investment in countries with supportive governments with immediate requirements to replace diesel generation, such as in Cuba.

CFS and LGC intend to lead the development and construction of each project with the funding coming from external investors. Under the terms of the agreement, CFS and LGC will share on a 50/50 basis the development, funding and construction revenues for each renewable power plant built, and will share on a 75/25 basis the 10-20 year operational contracts for all the systems.

Proactive Investors covered the announcement – click here to view.


Conclusion

CubaLGC Capital is a unique public opportunity. There is only one other company listed on a Canadian exchange with a Cuban focus. It’s imperative is promoting and selling tourism to Cuba. LGC is a company for those who believe that Cuba is going to blossom and can envision the potential for being a shareholder in a well established entity.

By investing and partnering with entrenched businesses within the country, LGC Capital is in a perfect position to take advantage of the economic surge that’s coming to Cuba. LGC provides investors with a rare opportunity to capitalize on a currently underdeveloped country gaining new found exposure to the U.S. marketplace.

Future valuation will obviously be driven by fundamental results. However, based on the history of the people behind LGC and their respective investing networks, we wouldn’t be surprised to see the expectation of “future potential” attracting people to the story.

Without question, LGC was on the dance floor before the band struck the first note!

For more information on LGC Capital, please contact:

Dave Burwell
The Howard Group Inc.
Email: dave@howardgroupinc.com
Tel: 403-221-0915

To receive ongoing commentary on the activities of LGC Capital, click here to register.

Not For Distribution Directly or Indirectly in the United States.

Alaska Should Be Talking To CEMATRIX About Massive Highway Problems

A recent Bloomberg article quickly caught our attention as its title, Climate Change Is Hell on Alaska’s Formerly Frozen Highways”, addresses a huge issue that CEMATRIX solved for the City of Yellowknife in 2004, albeit on a smaller scale.

Author Greg Quinn wrote in detail about permafrost and the devastating effects it has on the lengthy 2,232 kilometre Alaskan Highway.  The article grabbed extensive press coverage including throughout Canada via the Financial Post. The article brought to mind a 2004 project where CEMATRIX’s cellular concrete, proprietary formulations and processes solved a regular and expensive headache along Yellowknife’s main thoroughfare, Franklin Avenue.  According to management,  the road frequently looked like a rollercoaster as permafrost thawed under the heat-trapping dark road surface.  

While it may sound improbable, the road bed would experience up to one metre of localized settlement as spring thaw hit. Enter CEMATRIX with cellular concrete, which acts as a floating, insulating base between the asphalt and the ground below. When re-constructed in 2004, areas with up to three metres of asphalt were removed and replaced with gravel,  prior to cellular concrete placement.

In speaking with company management, local Yellowknife engineers continue to report the CVX solution was THE answer and that minimal road repairs have been needed over the12 years since cellular concrete was used.  Its success scored CEMATRIX another contract win for a second Yellowknife project, McDonald Drive in 2010.

In Quinn’s article, he mentions that one section of the Alaska Highway that runs through the Yukon requires annual repairs of $30,000 per kilometre, that is seven times the cost of regular highway repairs.  The piece also refers to a quote from Fabrice Calmels, a researcher at Yukon College that states “It’s like taking five stories out of a 10-storey building” as he describes one critical section of the highway near Whitehorse.  Mr. Calmels said one solution is to keep the heat away by adding layers of insulation such as foam.

This application is only one of many uses for cellular concrete.  CEMATRIX has been working with Engineers across North America educating them on its product’s benefits and the extensive cost savings over other insulating products like Styrofoam, which is now under scrutiny for its environmental impact while being hidden from view.

Those in charge of Alaska’s highways only need to walk Franklin Road in Yellowknife to realize that the answer to their dilemma may be right under their feet.  

Recently CEMATRIX announced that it has formally partnered with the world’s largest cement company, LafargeHolcim, to co-develop the cellular concrete market.  Every time CEMATRIX makes a sale, it benefits LafargeHolcim as it is a sale that the cement giant would not have had if not for CEMATRIX and its solution. CEMATRIX has grown its annual business to over $15 million with a sales force consisting of three people. LafargeHolcim has a sales team many times larger than CEMATRIX, just in Canada.

This is all food for thought for investors.

CEMATRIX Sends A Message About Future Expectations Following News of A Record Q2

CVX:TSX-V

CEMATRIX President and CEO Jeff Kendrick summed up today’s news of a record first half 2016 and Q2 in his quote:

“Our sales pipeline for projects scheduled for 2016 and 2017 are at the highest level in our history, excluding any potential additional sales expected to be generated from the recent Joint Marketing Agreement with Lafarge. We are taking the necessary steps to prepare the Company for this significant sales growth by building the additional required equipment, adding operational staff to be hired and trained, increasing product testing to facilitate marketing efforts and implementing the internal systems that will allow our staff to manage larger projects more efficiently.”

Projects on which CEMATRIX has been asked to submit bids now total $126 million with 89% of that total related to infrastructure.

Although CEMATRIX has spent years diversifying its business to round out the seasonality, it does somewhat mirror the construction season. The first half of the year is traditionally much slower than the second half.  CEMATRIX increased sales 19% to $5.9 million in comparison to the same period in 2015.  

Gross margin on sales was $1.2 million with reported positive EBITDA of $294,288. Management stated that increased labour costs for hiring additional staff in preparation of expected sales growth through the balance of 2016 and in 2017 brought margins down in H1 but expect them to improve as increased sales volume levels cover fixed costs.

cvx_160804chart

To view full news release, please click here.

Shares Outstanding: 34,475,994
Options: 3,425,000
Fully Diluted: 37,990,994

FLYHT CEO Speaks To Momentum On Heels Of Record Shattering Quarter

FLY:TSX-V

As of this writing, FLYHT volume had reached approximately three quarters of a million shares following news of a record revenue $6.7 million second quarter and CEO Tom Schmutz speaking with investors regarding ongoing corporate progress and performance.

The quarter received a major boost with a one-time Intellectual Property sale as outlined by CFO Nola Heale. Here are some of the highlights from the conference call:

  • FLY)160728a

    (click to enlarge)

    “Second quarter was an outstanding revenue quarter for FLYHT. Total revenue was $6.7 million, which is nearly 80% larger than our best previous quarter. This revenue result was helped by a $3.3 million intellectual property deal. Even without that, we brought in $3.5 million from our traditional sources of revenue, which would be a close second to the fourth quarter last year for best revenue.”

    “The OEM licence fees which show up in our parts sales for the company remains strong and continue to grow year over year. We are significantly ahead of last year’s revenue from this source at this time. Nearly doubling the first half of 2015.”

  • “We place significant internal focus on growing our recurring revenue sources more quickly and I expect to have some exciting news in this revenue area in the near future.”
  • “When we look at our revenues year to date, we find that the $9.3 million figure that we bought in quarters one and two of this year, is approaching the $10.5 million that we did in all of 2015.”
  • “Our company has demonstrated record revenues successfully in five of the last six quarters. So there is significant optimism within the company resulting from this improved revenue performance and the strong feedback we are receiving from OEM and solution partners that we have a unique offering for the market.”
  • “We are focused on accomplishing the goals we set out to do in 2016. We are increasing our revenues and will continue to shepherd that very important indicator. We are very focused on closing a new OEM opportunity and we continue to see interest in the market for our solution.”

Please click below to listen to the full conference call or click here.

Interview With FLYHT CEO Tom Schmutz

“There Is A Real Awakening In The (Airline) Business And FLYHT’s Well Positioned”

FLY:TSX-V

In a recent interview with U.S.-based Uptick Newswire, FLYHT CEO Tom Schmutz covered a number of topics including:

  • The company’s charitable sponsorship of Laval St. Germain and his heroic efforts to raise money for cancer
  • The company’s year over year rising revenues
  • The successful recent private placement
  • How the Automated Flight Information System (AFIRS™) saves airlines money through various services
  • How it enhances aircraft safety by being able to stream black box data during an emergency event during a flight

In closing, Mr. Schmutz summarized the company’s current focus and outlined the opportunities that lay ahead.

“Right now we are focused on a couple different areas. We are focused on getting additional OEMs, in addition to the A320 and A330. We have a very strong business in China right now. There is a Chinese mandate that requires satellite communications to be on aircraft and inspected by 2017. I just got back from China and I continue to be excited about that portion of our market. And we’re looking for opportunities to support flight tracking requirements as they come out. Those requirements have been pushed out to 2018 and 2021. But we think the aircraft community is becoming more enlightened about wanting to understand where their assets are and making sure they move from old 1950’s style technologies and into the 21st century where you can understand where your equipment is at any time and talk to it in real time.”

To listen to the full interview, please click here.

Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935

 

FLYHT Featured In Avionics Magazine – AFIRS Saves Time And Money

FLY:TSX-V

Avionics Magazine writer, Woodrow Bellamy III, recently penned an article called “FLYHT is Expanding Real Time Aircraft Monitoring to the Cloud” after interviewing CEO, Tom Schmutz and CTO Derek Graham. Key points that were detailed included how the technology saves airlines money and how it is helping customers identify potential mechanical issues before they occur.

In the piece, they discuss how the company’s Automated Flight Information Reporting System (AFIRS™) is moving its servers from the ground to the cloud.

To read the full article, please click here.

About Avionics Today
Avionics is the leading source for global aviation technology intelligence, covering the latest developments with the connected aircraft, NextGen, avionics innovation and global air traffic management modernization. More than a magazine, this is the platform for in-depth analysis on the global aircraft electronics market, used by top avionics executives, engineers, pilots and professionals throughout the value chain. All this is backed by a Qualified Circulation of 27,000.


Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935


CEMATRIX Formally Joins Forces With Global Giant Lafarge – Market Responds Positively

In spite of globally weak markets, news on the CEMATRIX – Lafarge agreement has been well received with the stock climbing 20% from Friday’s $0.39 close. Amidst a sea of global negative news and uncertainty, there was a positive embrace of the announcement that CEMATRIX has entered into a five-year Joint Marketing Agreement with Lafarge Canada for the development of cellular concrete markets across Canada.  The plan is to increase sales to the benefit of CEMATRIX and Lafarge by heightening awareness of the construction challenges which can be solved with cellular concrete solutions.

The obvious question is, why would a company the size of Lafarge be interested in a formal agreement that ties the companies at the hip? From CEMATRIX’s perspective, CEMATRIX has been a large customer of Lafarge for many years and the companies have successfully collaborated on many past projects. More importantly, every cubic metre of cellular concrete that CEMATRIX places is a win for Lafarge as it brings new business to the cement giant that may have been previously unavailable.

Lafarge is a major player in the aggregates, cement and concrete industries, and is a world leader that operates in 64 countries and employs 65,000 people. The most recent numbers on the Lafarge website states sales were 15.8 billion Euros in 2012. Lafarge’s recent merger with Holcim in 2015 makes the combined companies the largest cement company in the world.

CEMATRIX has developed and acquired technologies, proprietary formulations and specialized processes that ensure product consistency with endless capabilities. Lafarge has a massive marketing team that could have a material impact on CEMATRIX’s revenues by driving sales and awareness of the innovative product to the next level.

CEMATRIX must be expecting a large increase in sales. It was noted in the news release that in order to meet the expected demand with the new working relationship, CEMATRIX plans to invest approximately $2.5 million to build two new dry mix units and have them up and running by the start of the busy season in spring of 2017.  Other equipment requirements may follow.

CVX’s current North American pipeline of potential projects now exceeds $120 million in total, of which 88% is infrastructure related.

To view news release, please click here.

 

U.S. Judge Draws “Line In The Sand To Would-Be Patent Infringers”

In an article published in the Financial Post on Tuesday, June 14, 2016, Kristine Owram reported on Florida U.S. District Judge Beth Bloom, who ordered BRP (Bombardier Recreational Products), the maker of Ski-Doos and Sea-Doos, to pay Arctic Cat $46 million for patent infringement.

We felt this judgement was well worth commenting on as Intellectual Property (IP) is of particular importance for two of The Howard Group’s clients and is a key reason why we are invested in both companies, being Clean Seed (CSX.V) and FLYHT Aerospace (FLY.V).

Clean SeedWhen we first introduced Clean Seed in July 2014, the theme of the commentary was a belief that what would determine the company’s ultimate value was the IP portfolio, which has also grown over the past two years.  If we are correct, the IP will be THE reason for a major farm equipment manufacturer to take a serious look at Clean Seed. The company has incorporated multiple technologies into its CX-6 Smart Seeder that allow a field to be “painted” on a square foot basis with the simultaneous and optimum mixture of seed, nutrients and fertilizer. Very recently, the first CX-6 SMART Seeders were delivered to Rocky Mountain Dealerships (TSX – RME).

To read The Howard Group’s introduction to Clean Seed, click here.

FLYHT Aerospace SolutionsFLYHT Aerospace lives and breathes technology and has a number of patents and patents pending. It’s the attributes of the technology that has attracted more than 50 customers being airlines, leasing companies and original equipment manufacturers. Total flight hours using the Automated Flight Information Reporting System (AFIRS™) system now exceed 2.2 million. As promoted by FLYHT, the proprietary technology increases safety, improves operational efficiencies and enhances profitability, operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data.”  

CEO Tom Schmutz was recently interviewed on CNBC:
https://howardgroupinc.com/2016/06/flyht-ceo-tom-schmutz-interviewed-cnbc/

In the Arctic Cat case, the jury found that BRP willfully infringed on two patents related to a safer steering system for personal watercraft and therefore awarded Arctic Cat initial damages of US$15 million. However, because the infringement was found to be willful, the judge tripled the damages owing.

The article quoted Arctic Cat lawyer, Nicholas Boabel of law firm Hagens Berman, “Judge Bloom’s final judgement in this case is not only a major victory for our client, Arctic Cat, but a testament to the importance of upholding IP law and punishing wilful patent infringement.”

It’s expected that BRP will appeal.

To view the full Financial Post article, please click here