Stack Capital Group Inc. Reports 2023 Year End Results
March 07 2024 - 7:45AM
Stack Capital Group Inc., (“Stack Capital” or the “Company”) (TSX:
STCK and STCK.WT) today announced its financial results for the
year ended December 31, 2023. Stack Capital reports all amounts in
Canadian Dollars unless otherwise stated.
Company Commentary:
- As at December 31, 2023, Book Value
per Share (BVpS) of the Company was $10.91, compared with $11.30 as
at September 30, 2023.
- During Q4, currency fluctuations
resulted in a $0.19 drag to BVpS. As of today, the US dollar has
recovered, thereby reversing the $0.19 decrease in BVpS.
- Stack Capital increased its
exposure to Locus Robotics through a share-swap transaction issuing
273,501 Stack Capital common shares, at $11.30 per share, which
closed on March 4, 2024.
- The Company’s cash position as at
December 31, 2023, was $25.1 million or $2.80 per share.
- To date, the Company has completed
eight investments contributing $8.13 per share as at December 31,
2023, into the following:
- SpaceX (space exploration &
communications)
- Omio, Inc. (travel &
leisure)
- Hopper, Inc. (travel &
leisure)
- Locus Robotics, Inc.
(robotics)
- Newfront Insurance, Inc. (insurance
& benefits)
- Prove Identity, Inc.
(cyber-security)
- Bolt Financial, Inc.
(e-commerce)
- Varo Money, Inc. (neo-banking)
- During Q4-2022, the Company
announced a normal course issuer bid to buy back its outstanding
common shares which it believes to be undervalued. During 2023,
201,900 common shares were repurchased at an average price of $6.49
per share.
- During 2023, the Company invested
additional capital into Omio, an existing portfolio company. This
subsequent Omio investment is already up 40% from the purchase
date.
“I believe that this is one of the most exciting
times to invest in growth and late-stage private markets, and Stack
is ready to capitalize given its advantageous cash position of $25
million. With the IPO market beginning to show signs of re-opening,
we believe that high-quality private companies will be some of the
first to list. We’re optimistic that some of our existing portfolio
companies fit that profile, and represent excellent candidates for
future liquidity events,” said Jeff Parks, CEO of Stack
Capital.
Q4-2023 Highlights
- As at December 31, 2023, the Book
Value of the Company was $97.7 million, and the Book Value per
Share was $10.91. A detailed summary of Book Value per Share is as
follows:
Breakdown of Book Value per Share as at December 31,
2023: |
|
Cash |
$ |
2.80 |
|
Investment – SpaceXi |
|
1.34 |
|
Investment – Omio, Inc.ii |
|
1.22 |
|
Investment – Hopper Inc. |
|
1.19 |
|
Investment – Locus Robotics, Inc. |
|
1.18 |
|
Investment – Newfront Insurance, Inc. |
|
1.18 |
|
Investment – Prove Identity Inc.iii |
|
1.13 |
|
Investment – Bolt Financial, Inc. |
|
0.55 |
|
Investment – Varo Money, Inc. |
|
0.33 |
|
Net other assets |
|
(0.01 |
) |
Book Value per Share |
$ |
10.91 |
|
i the Company invested in units of FNEX Ventures
LLC – Series 103 which is primarily invested into Space Exploration
Technologies Corp. (“SpaceX”).ii the Company invested in shares of
GoEuro Corp. which carries on business as Omio. iii the fair value
of Prove Identity Inc. includes an unrealized deferred gain of
$939,349.
- SpaceX achieved a valuation of $180
billion from a secondary tender offer run by SpaceX resulting in an
increase in Stack Capital’s Book Value per Share by $0.19.
- Stack Capital adjusted Bolt
Financials’ valuation down by $0.34 for the year ended December 31,
2023 due to recently updated financial information provided by Bolt
Financial.
- Prove raised $40 million from
MassMutual and Capital One in its latest series of funding to focus
on the next phase of growth.
- Stack Capital’s investment in a
secondary transaction of Omio resulted in a Book Value per Share
increase of $0.08 during Q4-2024, illustrating Stack’s ability to
acquire shares at an attractive price.
- Given Stack Capital has the
majority of its assets in US dollars, the Company experienced a
decrease in its Book Value per Share of $0.19 in Q4-2023 due to the
weakened US dollar. Since year-end, the US dollar has strengthened;
as such, as of today, Stack Capital has recovered more than $0.19
in BVpS.
About Stack Capital
Stack Capital is an investment holding company
and its business objective is to invest in equity, debt and/or
other securities of growth-to-late-stage private businesses.
Through Stack Capital, shareholders have the opportunity to gain
exposure to a diversified private investment portfolio; participate
in the private market; and have liquidity due to the listing of the
Common Shares and Warrants on the TSX. At the same time, the public
structure also allows the Company to focus its efforts on
maximizing long-term performance through a portfolio of high growth
businesses, which are not widely available to most Canadian
investors. SC Partners Ltd. (the “Manager”) has taken the
initiative in creating the Company and acts as the Company's
administrator and is responsible to source and advise with respect
to all investments for the Company.
For more information, please visit our
website at www.stackcapitalgroup.com
or contact:Brian ViveirosVP, Corporate
Development, and Investor
Relations647.280.3307brian@stackcapitalgroup.com
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 or unrealized deferred gains or losses
if applicable, of the Company; and
- Book Value per Share
(BVpS) - 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 and 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.
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 business of Stack
Capital and the risks associated therewith, including those
identified in the Annual Information Filing 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.
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