TORONTO, Aug. 5, 2021 /CNW/ - Stack Capital Group Inc.,
("Stack Capital" or the "Company") (TSX: STCK) (TSX: STCK.WT) an
investment holding company seeking to generate long-term capital
appreciation through investments into growth-to-late-stage private
businesses, today announces its financial results for the quarter
ending June 30, 2021 ("Q2-2021").
Stack Capital reports all amounts in Canadian Dollars unless
otherwise stated.
Q2-2021 Highlights
- On June 16, 2021, the Company
completed its Initial Public Offering ("IPO") for gross proceeds of
$100 million. Concurrent with the
closing of the Company's IPO, certain officers of the Manager (the
"Management Investors") invested gross proceeds of $7 million on similar terms as the IPO on a
non-brokered, private placement basis. As part of the non-brokered
private placement, each Management Investor agreed to a five-year
voluntary lock-up, subject to certain customary exceptions.
- As at June 30, 2021, the working
capital of the Company was $100.3
million and the Book Value per Share was $11.25. The Company's cash balance at quarter end
was $101.4 million.
"We're extremely proud of the successful IPO for Stack Capital
and have been working diligently since that time towards executing
on the mandate to democratize access into some of the world's most
innovative and disruptive, growth-to-late-stage private companies",
said Jeff Parks, CEO of Stack
Capital. "We look forward to announcing Stack's inaugural portfolio
investment and, over time, building a diversified portfolio of
private company investments for the benefit of shareholders."
Canaccord Genuity 41st Annual Growth Conference
Stack Capital also announces that Jeff
Parks, Stack Capital Group CEO, will be presenting at the
Canaccord Genuity 41st Annual Growth Conference on Tuesday, August 11, 2021 at 2:00 PM EST. The Stack Capital Group management
team will also be conducting investor meetings in conjunction with
the conference as well. Please contact Brian Viveiros with the contact information
below for further information.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information. Such
forward-looking statements or information are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that reliance on such information may not be appropriate
for other purposes. Any such forward-looking information may be
identified by words such as "proposed", "expects", "intends",
"may", "will", and similar expressions. Forward-looking information
contained or referred to in this press release includes, but may
not be limited to, the exit conditions of the TSX Sandbox; and the
business of Stack Capital and the risks associated therewith,
including those identified in the Prospectus under the heading
"Risk Factors".
Forward-looking statements or information are based on a number
of factors and assumptions which have been used to develop such
statements and information, but which may prove to be incorrect.
Although Stack Capital believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because Stack Capital can give no assurance that such expectations
will prove to be correct. Factors that could cause actual results
to differ materially from those described in such forward-looking
information include, but are not limited to, the ability to
capitalize on investment opportunities. The forward-looking
information in this press release reflects the current
expectations, assumptions and/or beliefs of Stack Capital based on
information currently available to Stack Capital.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, Stack Capital disclaims any intent or obligation
to update any forward-looking information, whether as a result of
new information, future events or results or otherwise. The
forward-looking statements or information contained in this press
release are expressly qualified by this cautionary statement.
Non-IFRS Financial Measures
This press release may make reference to the following financial
measures which are not recognized under International Financial
Reporting Standards ("IFRS") and which do not have a standard
meaning prescribed by IFRS:
- Book Value - the aggregate fair value of the assets
of the Company on the referenced date, less the aggregate carrying
value of the liabilities, excluding any deferred taxes if
applicable, of the Company; and
- Book Value per Share - the Book Value on the
referenced day divided by the aggregate number of Common Shares
that are outstanding on such day.
The Company's Book Value per Share is a measure of the
performance of the Company as a whole. The Company's method of
determining this financial measure may differ from other issuers'
methods and, accordingly, this amount may not be comparable to
measures used by other issuers. This financial measure is not a
performance measure as defined under IFRS and should not be
considered either in isolation of, or as a substitute for, net
earnings per share prepared in accordance with IFRS.
About Stack Capital
Stack Capital is an investment holding company and its business
objective is to maximize long-term capital appreciation through
investments in equity, debt and/or other securities of some of the
world's most innovative and disruptive growth to late-stage private
businesses. SC Partner Ltd. (the "Manager") took the initiative in
creating Stack Capital and acts as the Company's exclusive manager
to source and advise with respect to all investments for Stack
Capital. The Manager also manages such investments and otherwise
directs Stack Capital's affairs and manages the Company's
business.
The TSX agreed to list Stack Capital pursuant to the TSX Sandbox
and exercised its discretion to waive the requirements for
historical earnings and pre-tax cash flow as Stack Capital did not
meet the original listing requirements of the TSX set out in
Section 309(a) of the TSX Company Manual. Listing on the TSX was
subject to Stack Capital fulfilling all of the listing requirements
of the TSX (save for those requirements for which an exemption or
waiver was provided through the TSX Sandbox) including, among other
things, raising minimum gross proceeds of $100 million under the Offering. Stack Capital
will remain listed pursuant to the TSX Sandbox until such time as
it has: (i) deployed 50% of the net proceeds raised pursuant to the
Offering and the Management Investment; and (ii) publicly filed
interim financial statements reflecting a full quarter of operating
history subsequent to listing on the TSX. As disclosed under "Risk
Factors" in the (final) prospectus of Stack Capital dated
June 9, 2021 (the "Prospectus"),
Stack lacks an operating history and there is a very limited basis
upon which a potential investor can evaluate Stack's ability to
achieve its stated investment objective. Investors are referred to
the risk factors set out in the Prospectus for further details.
SOURCE Stack Capital Group Inc.