MPC Clean Energy hits $275

MPC Caribbean Clean Energy (MPCL) stock traded at a record $275 on the Jamaica Stock Exchange on Monday as investors position to take advantage of a rights issue of 22,848,320 class B shares to be offered by the company.
The listed shares were priced at J$130 or US$1 when it came to the market in late 2018. The proposed new shares will be by way of a renounceable issue at J$140 to Jamaican shareholders and US$1 per share for shareholders in Trinidad and Tobago with a record date of November 8 as the Company seeks to raise the equivalent of US$22,848,320 from its shareholders.
The company went to the market in November 2018 to sell up to 50 million shares but the take up fell well short with the capital with just 11.25 million units with Jamaican taking up over 77 percent of the issue and Caribbean Clean Energy Feeder Ltd taking up 18.4 percent.
MPCL has 34.4 percent interest in the Paradise Park project that comprises a 50 MWP solar PV plant in Westmoreland in Jamaica that comprises a total investment of approximately US$64 million.
The second seed asset Tilawind is a 21 MW onshore wind farm based in Costa Rica in which MPC effectively holds 50 percent with the other half owned by ANSA McAL Group a Trinidad and Tobago group the total investment in that operation is approximately US$50 million. The wind park has been in operation since March 2015.
According to the company, a further 14 projects have been prioritized and form the indicative deal pipeline for the Investment Company. These require a total investment estimated at US$499 million to deliver up to 314 MW of new renewable energy capacity. The listed company invests in MPC Caribbean Clean Energy LLC who in turn invest directly the operating projects.
The company posted earnings for the nine months to September that reverses the positives number in the June Quarter. The results released are confusing, lacks transparency and will not help the company in raising the desired capital.
According to management, they have investments in two power-generating operations, with both in operation for the September quarter and generated share in profits of associated companies of $56,788. With just one-quarter of operation before from one location, they enjoyed a share in the profit of associate of $145 million in that quarter. The management report states that production at the Costa Rican operation generated 9.4 percent more energy than in the prior year. The numbers just do not seem to add up and management did not provide an explanation as to the reason why in their quarterly report. While the company is reporting total share of profit of $205,858 and a loss of $45,749 for the nine months period, the results from operations look vastly worse. The company reported a loss of $109,523 for the September quarter but advertising cost of $87,020 was the major cause of the big loss.
Regardless of what has been achieved to date, the performance is well off from the projections in the prospectus with a projected income of US$1.39 million and profit of $1.25 million for 2019 and projected revenues of US$2.94 million in 2020 with a profit of US$2.76 million.

$45 for Barita Investments rights

Barita Investments headquarters

Barita Investments will offer 116,845,955 ordinary shares to its ordinary stockholders by way of a renounceable rights issue of 11 shares for each 100 own as of August 20.
The exercise price will be $45 per share with the last date for renunciation will be September 10. Shareholders will have up to September 15, to accept the amount of their offer but can apply for additional shares from amounts not taken up by allottees, up to September 20.
The current offer is the second rights issue to purchase additional shares in the company, in less than a year. The stock traded on the Jamaica Stock Exchange on Friday to close at $91.50, for a rise of 72 percent for the year to date. but it has gained 862 percent in the last twelve months, not including gains from the issue of rights in March.

Sunshine Palace opens tomorrow

Palace Amusement latest cinema house – Sunshine Palace, opens its doors tomorrow Wednesday, July 24 to moviegoers in the Portmore community.
IC Insider.com was informed, that the opening is highly anticipated by persons in the community. Sunshine Palace is located at 7 Braeton Parkway in the prime commercial district in Portmore area.
Sunshine Palace is said to boast silver screens, improved legroom, reclining seats, VIP service, improved concession stands, and laser projection that creates a brighter light for picture and is also environmentally friendly.
The Disney blockbuster, The Lion King, featuring Beyonce, Donald Glover, Chiwetel Ejiofor and James Earl Jones, will be integrally tied to the history of Sunshine Palace as it will be the opening movie that will be the showcase event of the season.
Sunshine Palace comprises 4 movie auditoriums with seating for 674 patrons.

Blue Power to split in two

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Blue Power will split into two separate companies, the directors of the group decided on, to enhance prospects for growth of the two divisions.
The “Board of Directors considered the issue of growth of the two divisions of the Company and has reached the conclusion that having the Lumber Depot Division operate as a separate company will enhance its prospects for growth through acquisitions of and or mergers with other companies in related lines of business. The same considerations would apply to the growth of the Blue Power Soap division.”
In order to effect this move, an Extraordinary General Meeting will be held following the Annual General Meeting on August 14, to consider the matter.
Shareholders will be asked approve the issue or transfer of shares in a newly created subsidiary, Lumber Depot Limited, to the group’s shareholders on record as at August 1, with the intent that after such actions, shares in New Lumber Depot shall be held by the shareholders of the group in proportion to their existing holdings..
Blue Power shareholders will also vote to transfer the business, assets and relevant liabilities of the Lumber Depot Division to the new Company.
The directors approved the payment of a dividend of 2 cents per share on August 12. The record date is July 25 and the ex-dividend date, August 9, 2019.
The last audited financial statements, show the Lumber shop division with sales to April this year of $1.197 billion and profit of $74 million, while the Soap division recorded sales of $469 million and profit of $85 million. In the previous year, the Lumber division recorded sales of $1.07 billion and profit of $62 million and the Soap division had sales of $440 million and profit of $53 million.
The assets of the Lumber shop amounts to $222 million at the end of April with liabilities of $54 million. The soap division had assets of $761 million and liabilities of just $31 million.
The two divisions are involved in two completely different business with little synergies. The two companies should have their own management and boards, suited to move the separate companies to much higher levels of operations and profits.
The stock last traded at $6 on the Junior Market of the Jamaica Stock Exchange on Thursday.

Elite Drax Hall opens August

Word reaching IC insider.com is that the third branch of Elite Diagnostic is set to open by the beginning of August.
Earlier this week, IC Insider.com sited the new building that is substantially complete and seems ready to welcome patrons. Elite had purchase of MRI machine from early in 2018 and had it store for installation at this location.
The new location is expected to carry a smaller staff compliment that the two in Kingston. The new location will be a drag on earnings for the company until it gets up to speed, but the cost will be less than for the second location.
At the 2018 annual general meeting, the directors indicated that the cost to set up St Ann Bay is in the region of $20-22 million plus U$375,000 for the MRI machine.
The company bought the MRI equipment early because it became available locally, but it comes at a cost as it was being stored with rental and electricity cost incurred to maintain it at a cool temperature. While the company has 3 other MRI competitors in Kingston, there will be no immediate competitor within 50 miles in St Ann. Operating cost at this location will less than at Liguanea with the former being staffed by 7 employees versus a planned staffing of 4 or 5 for St Ann.

Drax Hall branch of Elite nearing completion.

Elite reported net profit for the December 2018 quarter of $5 million compared to $1 million for the same period a year ago. Net profit for the 6 months was $6.8 million, down from $12 million for the same period in 2017. Revenues rose strongly to $97 million in the second quarter compared to $72 million for the 2017 period. For the six months to December, revenues rose to $182 million compared with $142 million for the year ago period. The stock traded at $4.80 on the Junior Market on Tuesday, with PE ratio of 7.5 based on estimated 2020 earnings of 65 cents per share.

Watch Barita with a new rights issue

Barita eyeing acquisition.

Barita Investments is planning another rights issue to raise new capital that is being earmarked IC Insider.com gathers to fund a major expansion.
A Directors meeting is set for Thursday, July 11, at which they will consider the recommendation of a rights issue to the company’s ordinary stockholders.
IC Insider.com gathers that the issue will be fully underwritten but will likely be renounceable which means shareholders will be able to sell their rights if they want to.  The terms and conditions are likely to be approved at an extraordinary meeting of shareholders to be convened by August.
The price has not yet been set but there is a view that it will be at about around 30 percent to the then market price. There are views suggesting that the nine months’ earnings are likely to be boosted by a sharp bounce in the company’s investment portfolio, courtesy of a booming stock market, increased fee income and a rise in fees from a growing unit trust portfolio that is benefitting from the buoyant stock market and pulling in new investors. Strong gains from investment banking activities are said to be major factors driving revenues and profit, the result of several deals that were finalized during the June quarter. IC Insider.com also gathers that foreign exchange trading has also ballooned and brought in much more income than previously.

Barita Investments headquarters

Importantly, our source is suggesting is that the rights issue that should bring in around $4 billion in fresh capital is primarily targeted to fund an acquisition that have Caribbean while locations and will make a big impact on profitability when fully integrated into the existing structure, if the deal goes through. IC Insider.com had projected the earnings for 2019 at $3 per share> With the consolidated of operations and acceleration in earnings that seems to be taking place starting with the second quarter earnings for the full year is most likely to exceed the above forecast handily. If that happens then the stock could be trading in the $60 region before too long after the third quarter numbers are released later this month.
The third quarter report shows total assets jumping to $27.7 billion from $16 billion at the end of March 2018 with equity capital at $7.8 million up from just $2.9 billion at the end of March 2018. Revenues net of interest expense more than doubled in the March 2019 quarter to $770 million from $329 in 2018 and profit rising to $408 million for the quarter compared to just $88 million in the 2018 quarter.  For the half year net revenues grew to $1.16 billion from $490 million in 2018 and profit rose to $517 million from $49 million.

Jamaica Producer’s appetite for acquisitions

Jamaica Producers sale of 30 percent of JP Snacks Caribbean, for  $720 million add to the group’s cash pile for the Group bringing it to just over $6 billion.
The total amount of financial resources provide good ammunition to undertake a sizeable acquisition, locally or overseas.
In an exclusive interview with Jamaica Producers’ Managing director, Jeffrey Hall, IC Insider.com gleaned that the group has a number of plans under its belt. Hall stated that all their businesses are doing well, but The Group is looking growth opportunities in infrastructure and Manufacturing. The low cost of and abundance of local capital is opening up possibilities for local businesses not seen for a long time, Hall stated. However, the group is not about to take on just about any business.
Tortuga International Holdings Company 62 percent subsidiary of Jamaica Producers is one such acquisition the group did a few years ago. The company manufactures the rum cake for sale with the main target being the overseas residents. The company produces rum cake in Jamaica for all the markets except Cayman suffered a fall in revenues in 2018. Tortuga International had revenues of $879 million in 2018, down from $907 million in 2017, according to the group’s audited accounts. Hall attributes the decline to the effects that hurricanes in the region on tourism traffic to some countries within the region.
“Tortuga will launch Mamajuana Rum Cake in the Dominican Republic in the second quarter of 2019 and Vanilla Rum Cake un Mexico in the third quarter of the year Hall told IC Insider.com.  
Producers delivered $816 million profit for shareholders of the group up from $662 million in 2017 from a 21 percent increase in revenues to $19.6 billion compared to $16.2 billion in 2017, at the same time gross profit rose below the increase in revenues at 16.4 percent. Segment results show JP Foods and Drinks division revenues rising 29 percent to $11.3 billion from $8.8 billion in 2017 and delivered segment profit that rose 36 percent to $378 million while the logistic segment comprising mainly Kingston Wharves grew revenues 11 percent to $8.3 billion for a 26 percent rise in profit $2.7 billion.

 

JP sells 30% of JP Snacks to Wisynco

Jamaica Producers former HQ

Jamaica Producers Group and Wisynco Group entered into an agreement that see the transfer 30 percent of the shares in JP Snacks Caribbean (‘JP Snacks’) to Wisynco Group.
JP Snacks Caribbean is a holding company that will own the “JP St. Mary’s” brand and JP’s tropical snack manufacturing operations in which JP will hold the remaining 70 percent of the shares.
“The goal of the partnership is to bring to consumers in Jamaica and internationally, a wide range of innovative Caribbean snacks and tropical foods. Wisynco will bring to the partnership, their expertise in marketing,

Wisynco Group

manufacturing and importantly, their best in class distribution network. The transaction values JP Snacks at $2.4 billion and sees Wisynco investing $720 million for a 30 percent interest, a release from both companies stated.
The release further stated that “the business will seek to strengthen distribution in existing markets in the USA, Canada, the Caribbean, the UK and Central America, in addition to seeking new markets. JP St. Mary’s snacks will continue to be the flagship product line of JP Snacks through its banana, plantain, cassava and breadfruit chips, as well as similar product lines for the Spanish language markets.
Jamaica Producers Group is a Jamaican-owned multinational, with its primary businesses infood and logistics. JP owns and operates the market leading fresh juice manufacturer, supplying

Jamaica Producers to introduce a new line of banana chips.

Holland, Belgium, Scandinavia and other markets in Northern Europe. Through its Tortuga International subsidiary, JP Group operates a Jamaica- based bakery that supplies Tortuga Rum Cake to over 15 countries. JP Group’s logistics interests include Kingston Wharves, the regional multi-purpose port and JP Shipping Services based in the UK. JP also owns JP Farms, Jamaica’s leading banana farm, which is the largest private sector employer in St. Mary, Jamaica.
Wisynco is the maker of WATA, CranWATA, BOOM Energy Drink and BIGGA soft drinks. In addition to its owned brands, Wisynco is the exclusive local bottler for the Coca- Cola Company, as well as third-party beverage brands such as Squeezz and Hawaiian Punch and also distributes portfolios for Red Bull, Tru Juice & Freshhh, Dr. Pepper, Worthy Park Estate, Kellogg’s, General Mills, Nestle and others.

Up to $50m loan to buy Wigton shares

NCB Capital Markets will be providing investors up $50m in margin funding to assit with buying of Wigton’s shares in the IPO.

Investors in Wigton Windfarm initial public offer of shares will be able to access up $50 million in loan financing from NCB Capital Markets (NCBCM) to fund up to 50 percent of the purchase, NCBCM’s CEO Steven Gooden informed IC Insider.com.
The Wigton IPO, is generating lots of interest, amongst Jamaicans, residing locally and overseas and should pull in around $6 billion before expenses for the sellers, PetroJam. It will be one of the larger issues, to hit the Jamaican capital market.
In addition to providing margin funding to assist in purchasing the new IPO issue, NCBCM online portal, dubbed ‘GoIPO’ and created in conjunction with the Jamaica Central Securities Depository , will be available for their investors to use in making application for the shares. The application will allow investors with accounts at NCBCM, to easily fill out application forms as the system will automatically populate the form with the other information for persons with login access codes.
The GoIPO was born out of the major challenges that NCB encountered when they brokered the Wisynco IPO.
Investors with login codes can use them to access NCB system and access accounts that will fund the application. The system will be show the Wigton IPO application from which the appropriate application form is to be fill out. The required information will be the sum being invested. The system will compute the number of shares being applied for and the applicant will identify the account that the funds will come from.

Wigton IPO with propectus expected in a day or two.

Persons having no login code will have go online and fill in name, JSCD account number and TRN and enter the sum they are investing and method of payment as well as upload a photo ID to go with the application.
The new system will eliminate the need to visit a locations to deliver applications and significantly reduce errors associated with manual processing.
Of the GoIPO solution, platform is encrypted, providing security and confidentiality to users, who can access the digital portal once they have a JCSD number. Gooden said, too, that as selling agents of the IPO, NCBCM possesses the largest distribution channel within the broker space and clients who do not wish to apply digitally are encouraged to complete and return their forms to NCBCM locations islandwide.
NCBCM say that investors can apply through the NCB system to apply for shares to go into other brokerage accounts.

Eppley Carib Property considers JSE listing

Eppley Caribbean Property Fund is now being managed by Eppley, a Jamaican listed company

Eppley Caribbean Property Fund SCC announced its intention to cross-list the cellular shares of the Value Fund (“the Value Fund Shares”) on the Jamaica Stock Exchange.
The Value Fund Shares are currently listed on the Barbados Stock Exchange and the Trinidad and Tobago Stock Exchange and the believes that cross-listing the Value Fund Shares on the Jamaica Stock Exchange will enhance liquidity and make them available to wider universe of investors.
The Board of Directors has authorized ECPF’s fund managers, Eppley Fund Managers Limited, to evaluate the process of cross-listing the Value Fund Shares with the support of ECPF’s attorneys, investment bankers and other professional advisors.
If a decision is made by the Board of Directors to cross list the Value Fund Shares, Eppley expects that the cross-listing is likely to take place by the end of the second quarter of 2019 subject to any relevant regulatory approvals.
Eppley Caribbean Property Fund SCC (“ECPF”) is a closed-end mutual fund that invests in real estate across the Caribbean. ECPF has two segregated cells, namely the Value Fund and the Development Fund both of which are listed on the Barbados Stock Exchange and the Trinidad & Tobago Stock Exchange