Bob McWhirter Talks FLYHT On BNN

Strength In Share Price Comes From Optimism Around Chinese Opportunity

On Friday (January 6) afternoon, long time FLYHT follower and proponent Bob McWhirter, Portfolio Manager at Selective Asset Management fielded a caller’s question while appearing on Canada’s Business News Network (BNN). The caller was enthusiastic with his question, stating, “I’ve been sitting on it for six months and it’s finally starting to pop.”

Mr. McWhirter provided a quick overview of the technology and its functionality. In regards to the recent strength in the stock price, he sights optimism around FLYHT’s opportunity in China and how Chinese airlines are embracing the company’s technology.

To view the clip from BNN, please click here.

Technical Analyst Keith Richards Discusses FLYHT On BNN – Is FLYHT Primed For A Break Out?

Over the holidays (December 30, 2016), Keith Richards, technical analyst and portfolio manager at ValueTrend Wealth Management of Worldsource Securities, discussed FLYHT on Business News Network’s (BNN’s) Market Call Tonight. He fielded a question on FLYHT Aerospace and here’s the key takeaway.

“FLYHT Aerospace was in a downtrend and has most definitely begun quite a nice little base there. So what you’re looking for with this stock is you want to see a breakout past the base. It’s very difficult to gain on these charts, it’s a little hard to see. It looks to me to be in the mid-to high 20’s; if the stock broke out to that area, then you probably have some significant upside ahead of you. Right now it is in the base and that is a healthy development, a base is a good thing.”

To view the clip on BNN click here.

Fortune Magazine Features FLYHT Aerospace

This morning (December 8th), the online version of Fortune Magazine, featured a commentary by FLYHT board member and former Chairman of the U.S. National Transportation Safety Board, Mark Rosenker.

fly_161208pic1In the commentary, Mr. Rosenker declares “The technology is available.” He was referring to FLYHT Aerospace’s Automated Flight Information and Reporting System (AFIRS™) and its ability to stream recorder data from the flight data recorder (FDR) of an aircraft while in flight.

In the article he states, “This (AFIRS) offers the value of not only providing the actual location of the aircraft, but also an understanding of how it is – its real-time status. Data can be streamed as a result of a “trigger” that might occur during a flight incident. Or, data could simply be streamed throughout the flight for routine flight status information.”

In conclusion he declares, “We have the technology to make airline travel even safer – and we need to use it.”

To read the full article, please click here.

Alex Ruus on BNN: We Argue It (FLYHT) Should Be Trading Substantially Higher

Arrow Capital Portfolio Manager, Alex Ruus, was more than positive in his response to a caller who asked about FLYHT Aerospace during last night’s (December 5th) appearance on Canada’s Business News Network (BNN). This was his response:

We like it very much and good timing. I actually sat down and had dinner with the CEO of FLYHT last week. Things are just going great. The business continues to develop. The Chinese business has been a particularly bright area in the last year and is growing strongly; looks to potentially even accelerate some more next year. Meanwhile, they continue to work with a number of global OEMs on doing business. They are on the production lines at Airbus and up on Bombardier, and we think that there are opportunities in other areas.

Meanwhile, there is increasing pressure for increased regulation in terms of flight following. At some point in the next two to three years, you could see something happen that accelerates adoption of a lot of their solutions. This is like an internet of things type company. People never talk about it that way. But it really fits into that increasing data off of industrial machinery, which in this case is airplanes. Again really critical information, which helps them fine tune the operation of the plane, prevents accidents and if there is an accident give you immediate information to know what’s happening.

We think at some point this thing is really going to take off, it has been a frustrating stock. It kind of flat lined over the last year, despite becoming profitable in the summer, it’s likely going to finish the year profitable and growing at almost 50% a year rate. So, we are scratching our head a little bit as to why the stock is trading at the 20 cent area, we argue it should be trading substantially higher.   

To watch the segment, please click here.

FLYHT Receives $2.35 Million Interest-Free Government Loan

Wednesday (November 9th) was a good news day for FLYHT as management discussed its second consecutive profitable quarter with shareholders only to be followed that afternoon by a presentation where  the company  received a $2.35 million interest-free loan from the Western Innovation (WINN) Initiative.

The WINN funding will be used to “support plans for technology development in the air and ground components of FLYHT’s satellite/aircraft communications systems” up to December 2018. The loan is to  re-paid between January 2020 and December 2024.

This is most welcome news as investors are waiting to see how the company addresses  $3.2 million in convertible debenture coming due on December 23, 2016. The conversion price of the debentures is $0.25 per share. The WINN funds provide the company with considerable breathing room as this loan meets much of the future capital required for ongoing projects.

CEO Tom  Schmutz has publicly stated that the company is on track to grow a minimum of 30% this year independent from the IP sale made in the second quarter. Next year’s organic growth is expected to be in the same range before new larger opportunities, that management believes it will secure.  The last financial report showed that the company has over $3.8 million in cash and $1.5 million in receivables.

Even though the company has been showing growth and executing on its business plan the stock has continued to trade in a very narrow range of $0.18 to $0.22 since the summer of 2015.

To read the news release on the WINN interest-free loan to FLYHT, please click here.

FLYHT Aerospace Notches Two Profitable Back To Back Quarters – Growth Continuing


On the heels of very positive third quarter (September 30th) results, CEO Tom Schmutz and CFO Nola Heale hosted FLYHT’s quarterly conference call, which was noted to be the first money making quarter based on what the company calls “traditional” revenue. In the second quarter, the company sold Intellectual Property for $2.5 million USD which drove it to profitability.

fly161109chart  Here are some key points from Mr. Schmutz during the conference call.

  • “Total revenue for the quarter was $4.1 million, our largest revenue quarter ever from traditional revenue sources and 61% larger than Q3 of last year. More importantly, the third quarter was our second consecutive positive income quarter in a row, the first back to back, money-making quarters in the company’s history!”
  • “Through September, FLYHT has posted a $1.6 million-dollar year to date profit.”
  • “As a company, we are growing our top line, especially through our operations in China and OEM sales, while we are controlling costs through initiatives in our “Achieve Excellence” high-level strategic plan.”
  • “The (Chinese) launch customer that is currently using our real-time data services is also a reference customer for other operators which allows FLYHT to demonstrate the capabilities of our system to these other Chinese operators.”
  • “We also recently announced a contract for $4.26 million USD for AFIRS hardware to an information technology company that serves aviation operators in China…we are hopeful we will conclude a follow-on service contract for these real-time data services relatively soon.”
  • “FLYHT now has signed 19 Chinese Airline Operators and has signed seven new contracts for hardware and one new contract for services during 2016.”
  • “We are working other regions of the world with the same vigor to augment these sales in China and we hope to be able to discuss these prospects soon as well.”
  • “FLYHT’s other growth area is the OEM license fees which show up in our Parts Sales revenue. We added $1.6 million in parts during Q3 2016 which brings this revenue component to $3.7 million through September. This is already more than we achieved last year (which was $2.9 million) and is growing faster than we had anticipated.”
  • “The voice and data services component of revenue is growing and is approximately 10% higher than this time in 2015. There have been challenges growing this element due to economic challenges around the world, but we continue to see expansion.”
  • “AFIRS sales revenue through September is 71% ahead of last year at the end of September… We are building a significant backlog of AFIRS sales which is allowing FLYHT more opportunities to ship and install product.”
  • “Our revenue from traditional sources year to date is $10.2 million, or just shy of all of 2015 at $10.5 million. This does not include the license fee of $3.3 million we received in 2Q.”

An archive of the full conference call is available below or on FLYHT’s website by clicking here.

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


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


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”


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.”


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



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.


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


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


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 – – 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


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.


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


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.


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.
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.