More companies head to court

With no new legal provisions through Parliament regarding virtual annual general meetings (AGM) since COVID-19, this issue was compounded by the Government’s latest measure to halt in-person AGM’s, thereby forcing several more companies to apply to the Supreme Court to gain permission to hold their AGM’s in an electronic format.

Although some companies have amended their articles or gained permission to hold their AGM’s for the next three years, GraceKennedy Limited will be requesting permission to hold its future meetings virtually so long as Jamaica remains a disaster area on account of the coronavirus pandemic. This unique approach combined with the company’s expected amendments to its articles should allow it to operate uninterrupted in the near future. Kingston Wharves and Jamaica Producers have applied to get permission from the Supreme Court to hold their 2021 AGM’s on June 17 and 18. Barita was given permission last week to hold its AGM set for April 23 in a virtual format.

Patricia Sutherland joins JMMBGL as COO

Chair of the JMMB Joan Duncan Foundation and director of JMMB Bank (Jamaica) Limited Patricia Duncan Sutherland has joined JMMB Group Limited (JMMBGL) as its chief operating officer (COO) on a two-year contract. The release posted on the Jamaica Stock Exchange (JSE) noted, “Mrs Sutherland brings her expertise in the areas of strategic planning and operations management to support the effective execution of the initiatives and transformation of JMMB Group operating structure. We look forward to Mrs Sutherland’s full-time engagement, particularly at this pivotal point in the JMMB Group’s life, knowing that her laser focus and practical approach will certainly help the group to continue to achieve its strategic goals, in the midst of a transforming financial landscape.” Sutherland is the fourth Duncan sibling to be in an active executive role at JMMBGL.

JMMBGL’s 2020 financial year should be ending on a higher note thanks to its associate Sagicor Financial Company (SFC) which posted a US $29 million ($4.21 billion) net profit for the fourth quarter (third quarter for JMMBGL), which was 152 per cent higher than the prior period. This should result in a US $6.53 million ($946.1 million) share of profit for the third quarter of JMMBGL which wasn’t accounted for on publication in February. SFC also declared a US $0.05625 dividend which should accrue to US $1.87 million ($270.9 million) when paid on April 21.

Barita doing another capital raise

In its fixed date claim form to the Supreme Court, Barita made note that apart from its AGM being due to be held within the next seven months, it anticipates that given certain business opportunities and developments, it will be required to hold an extraordinary general meeting (EGM) before 2021 ends. Barita’s last EGM was held in July 2019 which saw shareholders approve its second rights issue in the year. Then the company raised $10.5 billion. The company raised $13.5 billion in its 2020 additional public offering which was its largest to date. Barita’s balance sheet has exploded to $70 billion with its shareholder base now standing at 5,142 following its acquisition in September 2018 from founder Rita Humphries Lewin, who retired in January. Cornerstone has been growing its business which now includes a merchant bank and Barita which have been on an aggressive talent hunt.

Ciboney equity goes negative

With no major operating assets, Ciboney’s equity finally went negative as its liabilities now surpass its asset base. This negative equity stands at $1.28 million with $9.88 million in assets and $11.16 million in liabilities. Ciboney’s burn rate also increased for the quarter as its net loss grew by 87 per cent to $1.92 million with the nine months ending February 28 now standing at $4.26 million. With $4.17 million in cash, Ciboney has at most another three quarters before its cash it depleted. Although there has been no confirmed acquisition to initiate a reverse takeover of FINSAC’s shares, Ciboney has been the best performing stock of the year with a 177 per cent rise in its price.