Kafus Capital Corp. Acquires Controlling Interest in Stone Tower Holdings Corp.

Strategic Insights -

Kafus Capital Corp. is pleased to report the execution of an agreement to acquire a controlling interest in Stone Tower Holdings Corp. of Winnipeg. This acquisition will give Kafus control of Stone Tower's several wholly-owned operating subsidiaries, including Navigator Fund Co. Ltd. and Sentinel Financial Group Ltd. Navigator Fund Co. is a leader in the microfund industry, providing exclusive service and superior management to a broader range of investors. The acquisition will permit Navigator and Sentinel to aggressively expand operations and is the latest step in Kafus' creation of the Signature Financial Group.

Key Takeaways:

  • Kafus Capital Corp. has executed an agreement to acquire a controlling interest in Stone Tower Holdings Corp. of Winnipeg.
  • Navigator Fund Co. Ltd. is a leader in the microfund industry, providing exclusive service and superior management to a broader range of investors.
  • Navigator's product line includes five domestic and international mutual funds, including the Navigator Canadian Income Fund and Navigator Value Investment Retirement Fund (NVIRF), which was ranked the 10th best performing mutual fund in Canada by Report on Business over the preceding 3 years.
  • Sentinel Financial Group Ltd. is a Canadian financial planning boutique with a 30 year history in the Winnipeg market and has developed innovative software applications, including the Tax and Investment Management Strategizer (TIMS) financial planning software.
  • Under the agreement, Stone Tower intends to form a new operating company to be called Signature Investor Services Ltd. and vend into that company its ownership and control of several wholly-owned operating subsidiaries, including Sentinel and Navigator.
  • Kafus intends to purchase a minimum of 60 percent of the issued and outstanding common shares of Signature Investor Services Limited by way of an issuance of 450,000 treasury shares at a deemed value of $2.50 a share.

Statistics:

  • Kafus intends to purchase 60% of the issued and outstanding common shares of Signature Investor Services Limited.
  • The deemed value of the 450,000 treasury shares is $2.50 per share.
  • Navigator's product line includes five domestic and international mutual funds.
  • NVIRF was ranked the 10th best performing mutual fund in Canada by Report on Business over the preceding 3 years.
  • Sentinel Financial Group has developed innovative software applications, including the TIMS financial planning software.
  • Warrantech is considered the second largest independent administrator of extended warranties in the USA, with approximately 50 million US dollars annually in sales.
  • CanFibre Group has assets of $19.6 million and minimal current liabilities.

Sources:

  • Business Wire: "Kafus Capital Corp. Acquires Controlling Interest in Stone Tower Holdings Corp."
  • Report on Business: "Top Performers Lists"
  • The Canadian Dealing Network: "News Release"