TORONTO, Dec. 24, 2020 (GLOBE NEWSWIRE) — Flow Capital Corp. (TSXV: FW) (“Flow Capital” or the “Company”) is announcing that Wedge Networks, Inc. (“Wedge”) has completed a buyout of Flow Capital’s royalty investment for $1,250,000.
“The team at Wedge has developed a compelling solution to address cyber security threats. With the increased dependence on telecommuting, due to the ongoing pandemic, and a global digital cold war, safeguards against such threats have become even more critical. Flow Capital is glad to have participated in their growth, and we wish them well,” said Alex Baluta, CEO, Flow Capital.
“Partnering with Flow has been very important to Wedge. Alex and his team at Flow demonstrated an ability to understand the capabilities of our innovations and to visualize the potential of our solutions. The past twelve months have been nothing like anyone had anticipated. Working with Flow has enabled Wedge to transition through an unforeseeable period of global dislocation, brought on by the global pandemic, and to position itself for growth,” stated Rob Fong, Chief Operating Officer and CFO, Wedge Networks, Inc.
The Company also announces today its intention to commence a normal course issuer bid through the facilities of the TSX Venture Exchange (the “TSXV”) to repurchase, for cancellation, up to 2,548,000 common shares of the Company, representing approximately 7.92% of the Company’s presently issued and outstanding common shares (the “NCIB”). The NCIB remains subject to the final approval of the TSXV.
The NCIB will commence on December 30, 2020 and will terminate upon the earliest of (i) the Company purchasing 2,548,000 common shares, (ii) the Company providing notice of termination of the NCIB, and (iii) December 29, 2021.
The Company believes that, from time to time, the market price of its common shares does not adequately reflect the Company’s underlying value and future prospects and that, at such times, the purchase of the Company’s common shares represents an appropriate use of the Company’s financial resources and will enhance shareholder value.
The Company has engaged Hampton Securities Ltd. to act as its broker for the NCIB (the “Broker”). The NCIB will be made through the facilities of the TSXV and the purchase and payment for the common shares, will be made in accordance with TSXV requirements at the market price of the applicable securities at the time of acquisition, plus brokerage fees, if any, charged by the Broker. All securities purchased by the Company under the NCIB will be cancelled.
The Company may enter into a pre-defined plan with the Broker to allow for the purchase of securities by the Company under the NCIB at times when it ordinarily would not be active in the market due to internal trading blackout periods.
To the Company’s knowledge, none of the directors, senior officers or insiders of the Company, or any associate of such person, or any associate or affiliate of the Company, has any present intention to sell any securities to the Company during the course of the NCIB. The Company completed i) a normal course issuer bid on December 23, 2019, where the Company purchased 1,548,250 common shares at an average price of $0.28505 per share, for an aggregate purchase price of $441,334; ii) a normal course issuer bid on August 1, 2019, where the Company purchased 4,334,500 common shares at an average price of $0.126628 per share, for an aggregate purchase price of $548,847 and iii) a substantial issuer bid on October 17, 2019, where 5,708,090 common shares at a price of $0.20 per share were purchased by the Company, for an aggregate purchase price of $1,141,618.
A copy of each Form 5G – Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSXV in respect of the NCIBs can be obtained from the Company upon request without charge.
About Flow Capital
Flow Capital Corp. is a diversified alternative asset investor, specializing in providing minimally dilutive capital to high-growth businesses. To apply for financing, visit www.flowcap.com.
For further information, please contact:
Flow Capital Corp.
Chief Executive Officer
1 Adelaide Street East, Suite 3002,
PO Box 171,
Toronto, Ontario M5C 2V9
About Wedge Networks
Wedge Networks, Inc. is a Real-Time Threat Prevention solutions company. Its innovative technology platform, Wedge Absolute Real-time Protection (WedgeARP™), is a software defined orchestrated network security system. WedgeARP™ provides network-based, real-time threat protection for all types of endpoints in a wide range of networks (mobile data, 5G, SD-WAN, SASE, and smart-city/IIoT). Deployed via the cloud, on premises, in data centers or in a virtualized environment by enterprises, governments, and managed security service providers, WedgeARP™ inspects, detects, and blocks in real-time, malware and cyber threats (known, unknown and customized). Wedge does this through its portfolio of patented and patent-pending innovations, including Deep Content Inspection (DCI) technologies embedded with artificial intelligence and industry best-of-breed security functions. WedgeARP™ is a highly effective, flexible and autonomous approach to enable real-time threat prevention across the entire spectrum of scale – serving SMBs to mega organizations – protecting over 100 million endpoints in 17 countries.
Awarded a Gartner Cool Vendor designation, and twice bestowed with Build-In-Canada Innovation awards, Wedge Networks is headquartered in Calgary, Canada with international teams in the North America, Asia Pacific, and the Middle East and North Africa regions.
For more information on Wedge Networks, visit http://www.wedgenetworks.com/
Please forward any media or PR inquiries to: PR@wedgenetworks.com
Forward-Looking Information and Statements
This press release contains certain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Flow Capital’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Flow Capital’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. By identifying such information and statements in this manner, Flow Capital is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. Forward-looking information in this press release includes, but is not limited to, the quantum and timing of payments to be made by Flow Capital under the terms of the Transaction and the expected cash balance of Flow Capital following the completion of the Transaction.
An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases or other forms of investment from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of certain of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company; the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed in the Company’s public filings. Although Flow Capital has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, Flow Capital has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business, including its ability to satisfy required payments under the Transaction. Although Flow Capital believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Flow Capital does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to Flow Capital or persons acting on its behalf is expressly qualified in its entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investment fund charges should be included in fee summaries: report – Investment Executive
While more than two-thirds of Canadian investors review portions of their fee summaries, most don’t come away with a strong understanding of what they’re actually paying, the report found.
“In a rigorous experiment, we found that only 23% of investors correctly identified their total cost of investing when they were given a status quo fee summary with an additional disclosure that some fees were not included,” the report said.
“Overall, we found that expanded cost reporting that specifies investment fund charges can significantly increase investors’ understanding of their cost of investing.”
The MFDA has looked at expanding the fee summaries required under the Client Relationship Model (CRM2) to include costs related to the management and operation of investment funds. The organization published a consultation paper on the topic in 2018.
Monday’s report looks to behavioural science for ideas about how additional reporting should look.
The report said most investors struggle to understand their investing costs, with more than four in five failing to identify the types of costs included in their fee summaries.
“Even experienced investors struggle to understand key terms and how their choices influence the type and amount of fees they pay,” the report said.
The report blamed the low level of comprehension on “the inherent complexity of investment fees and how they relate to investor choices” but also behavioural factors such as limited attention, disengagement when faced with complex information, and the tendency to neglect relatively small amounts — including the “exponential growth of the impact of fees over time.”
It also found that the limited reporting requirements limit investor education. In an experiment testing three cost reporting formats in addition to the existing framework, the authors found that the three formats that included investment fund charges increased investor comprehension relative to the status quo.
“We found that providing a short preamble noting the impact of fees, consolidating amounts paid to dealers and to investment fund companies in a single table, and more clearly defining key terms can increase investor comprehension,” the report said.
“We further found that defining fees directly in the cost of investing table and explicitly linking fees to investor actions may further facilitate comprehension.”
The results suggested that including the management expense ratio (MER) for each fund within the account holdings section of account statements doesn’t improve overall comprehension of the annual fee summaries. However, the report said that showing the MER may help investors identify certain actions to reduce their cost of investing or to improve the value of the service they receive. For this reason, including the MER in summaries “may have a small positive impact on investor comprehension.”
The MFDA said the research supports regulatory proposals to expand cost reporting to include investment fund charges. The fee summaries should clarify certain terms, make key information more salient and “describe fees in ways that help investors understand which choices engendered those fees.”
The report also noted the limits of additional reporting. Fee summaries are necessary but insufficient, it said, and not a panacea. Investors will still need help deciding how to reduce investing costs.
It also warned against overloading investors with information. While survey data indicate that Canadians want expanded cost reporting, the report noted that people may say they want more information than they can actually use.
Behavioural Insights Team also conducted research for the Ontario Securities Commission on CRM2 in 2019, which found investors don’t understand what they’re paying or what to do about it.
Editorial: Favorable Tax Rates Offer Significant Advantages For The Investment Eager – Business Examiner
BRITISH COLUMBIA – Tax rates make an incredible difference when it comes to decision time for investors and companies.
U.S. President Joe Biden’s recent push to get Group of Seven countries to agree to implement a minimal global corporate tax rate of at least 15 per cent was shot down in flames, to the surprise of mostly no-one. Can anyone see the world’s most powerful economic nations agreeing to something that could make them competitively deficient to the U.S.? Not in this lifetime.
It was believed that Biden’s request would allow him to raise the U.S. corporate tax rate to 28 per cent, after former President Donald Trump dropped it from 35 to 21 per cent. It probably won’t stop the Democrats from raising the tax bar, but they’ll have to do it all on their own.
Taxes are the bane of business’ existence. Despite politicians cries for having corporations “pay their fair share”, owners and shareholders are acutely aware of how much tax they already pay to various levels of government, payroll deductions and employee benefits. It seems like a never-ending stream, stemmed only by sharp managers, pencil-sharpening accountants and on-the-ball lawyers.
Which, altogether, makes the opportunity for making investments – and profits – in other, less taxed jurisdictions, even more attractive. That’s why multinational corporations seek other landing spots for their corporate head offices.
We need not look elsewhere than our own backyard to witness the benefits of lower-than-usual taxation. Does anyone think that British Columbia’s film industry would exist to any extent without significant tax credits, and an attractive, lower Canadian dollar against their U.S. counterpart? The combination of those two factors have been THE reason that this province is home to a large number of film production companies that call BC “home”.
That works in the U.S. as well. The Longmire series, for example, which the script says is located in Wyoming, was actually filmed in New Mexico, where it’s tax rate was 10 per cent less than the northern state.
Casting one’s eyes to the sporting world, it is becoming painfully evident that a stronger American dollar and nonexistent state taxes are making National Hockey League teams in Nevada, Texas and Florida increasingly attractive destinations for players. Including Canadian born skaters, choosing warmer and friendlier tax climes as great alternatives to much higher tax rates in BC, Ontario and Quebec. Not to mention the ability to enjoy life outside the rink due to less concentrated, and invasively rabid fan bases.
Tax advantages are just that, significant reasons for other cities, regions, provinces, states and countries to attract investment they otherwise wouldn’t get.
Ireland is a great case, as it’s low corporate tax rate was a major reason why corporations decided to set up shop there, the most specific cause of what is called “Ireland’s Economic Miracle”.
It’s why towns like Langford enjoy continual investment, despite recessionary times. Mayor Stew Young announced a significant tax reduction for developers prior to the most recent recession, and Langford was able to sail through rough economic waters with positive growth.
It’s also an opportunity that investment-welcoming First Nations can take advantage of, since their smaller bureaucracies can offer lower start-up costs and streamlined regulations to developers, providing an option to locating in multi-level government layers in other cities and towns.
Taxes aren’t the only reason, but they are major factors in attracting, and repelling investment. Even if politicians are loathe to support corporations, eyeing them with suspicion as they report profits, they are forced to recognize that those businesses create jobs, which means voters.
Thankfully there are competitive alternatives for corporations to weigh before making decisions about where to invest and build. Even if they choose not to locate in other countries, at least the threat of doing so restrains governments from raising taxes out of sight to keep some of these companies at home.
Grey County innovation hub receives $800K federal investment – CollingwoodToday.ca
Entrepreneurs in Grey County will soon have a new place to prototype their products and experiment with leading-edge technology.
Today, FedDev Ontario announced that it will be investing $845,000 to enhance service offering and business programming at the Sydenham Campus Regional Skills Training, Trades and Innovation Centre in Owen Sound.
“By collaborating with Grey County and its partners, we are supporting important parts of our region’s economy to stay strong, while bringing new innovators into the market and helping them commercialize their ideas,” said Marie-France Lalonde, parliamentary secretary to the Minister of Economic Development and Official Languages.
Lalonde made the announcement Monday morning via Zoom webinar on behalf of Minister Mélanie Joly, Minister of Economic Development and Official Languages.
The funds will be used to support the creation of a maker space and device lab that will include 3D printers and prototyping equipment to support small businesses to develop STEM skills, integrate new technologies, and commercialize products.
The investment will also support two new programming streams: acceleration programming for established companies; and incubation programming for newer businesses, benefiting from access to the maker space.
FedDev’s contribution of $845,000 is part of the overall project cost of $2,664,695 with contributions coming from the private sector and Grey County.
According to Lalonde, the investment will support 75 businesses, produce 10 new products and services, create 50 new jobs and will leverage an additional $1.8 million in private investment for the region.
“Creating fabrication and maker space labs allows the Sydenham campus to offer entrepreneurs a place to prototype and experiment, as well as offer training on leading-edge technology. FedDev Ontario funding is outstanding news and we are delighted the federal government recognizes the importance of rural entrepreneurs in the region,” said Selwyn Hicks, warden of Grey County.
MDA gets $35.3 million contract from Canadian Space Agency for Canadarm 3 components – Thompson Citizen
Hubble Space Telescope Sees Interacting Galaxy Triplet | Astronomy – Sci-News.com
Investment fund charges should be included in fee summaries: report – Investment Executive
Silver investment demand jumped 12% in 2019
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