A Portland-based animal health technology and services company is getting a $250 million investment.
Covetrus said Thursday that it will get the investment from Clayton, Dubilier & Rice, a private investment firm that has held a significant stake in the company since it was founded last year in a merger of Portland-based Vets First Choice and a New York company. Covetrus had a difficult first year that resulted in its posting a $1 billion loss, while top two executives were demoted to lesser roles.
CD&R will make the investment by purchasing convertible preferred stock with a 7.5 percent dividend. The dividend is payable in cash or with additional stock in the company, at Covetrus’ option. If the payment is taken as stock, it will be at a price of $11.10 a share, which Covetrus said represents a premium of 40 percent over the company’s 30-day volume-weighted average price.
Covetrus said it will use the investment to repay some of the company’s short-term borrowings, provide additional cash and for general corporate purposes.
At the close of the markets on Thursday, Covetrus was trading at $11.89, up 30 cents for the day.
Covetrus works with veterinary practice partners to improve health outcomes for animals and financial performance for the practices. It has more than 5,500 employees and more than 100,000 customers around the world.
CD&R manages $30 billion in investments and has offices in New York and London.
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Why housing is still the best investment for most Canadians – BNNBloomberg.ca
Owning a home remains the largest single investment for most Canadians. So it’s not surprising that fear over an economy turned upside down literally hits home for so many.
The Canada Mortgage and Housing Corporation (CMHC) recently warned the pandemic and resulting lockdown of the economy could drive the country’s average home prices down by between nine per cent and 18 per cent, as job loss and uncertainty force many Canadians to the sidelines. The federal housing agency expects the housing sector will not return to pre-pandemic levels until the end of 2022.
Most of the concern centres on oil-producing regions hit hard by the crash in crude prices. Housing analysts also point out vulnerability in big cities; especially the booming Vancouver and Toronto condo markets.
That’s potential bad news for speculators or those who just bought a home in a vulnerable region and want to sell in the next three years. For most long-term homeowners who can maintain a sufficient source of income, the best and safest investment remains the roof over their head.
According to the CMHC, average Canadian house values have increased by over five per cent annually over 25-year periods going back to the Second World War. That includes the 2008 global financial meltdown when predictions for a housing market collapse never materialized.
Many homeowners have already benefited from the pre-pandemic housing boom, and for new homeowners, any decline over the next three years can easily be absorbed once the market gets back on track.
For potential homeowners, the next three years could finally open an affordable window to the residential real estate market. One of the biggest pre-pandemic risks in the housing market was the threat of higher mortgage rates, but massive government spending and the resulting drag on economic growth mean that borrowing rates will likely remain low for a long time.
While a home should never be the only investment in a retirement portfolio, it’s unique from other investments in terms of risk. A short-term theoretical drop in the value of a home is not the same as a drop in the value of a stock or something like bitcoin. In most cases, homes are bought and sold far less frequently, which decreases the risk of making a price decline a real loss and allows time for it to recover.
What really sets a home apart from any other investment is its intrinsic value. A home is considered real estate. That means it is a real, tangible, asset and will always have a significant basic value. Other equity investments have intrinsic values, but they can be difficult to measure consistently in relation to their price. Bitcoin, for example, has no intrinsic value because it is backed by nothing. The only value in bitcoin, and many other equities that trade on public exchanges, is a belief by investors that it has the intrinsic value reflected in its trading price.
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The intrinsic value of a home comes in part from the fact that it is the only investment you can actually live in. It’s an asset you can rest your head in it at the end of the day no matter what value the market places on it. In addition to the potential for it to go up in value over time, a home pays a sort of dividend equal to the cost of rent if you didn’t own a home. A home can also generate income by renting out all or part of it.
Home ownership also allows average investors to build equity by borrowing at a low interest rate in the form of a mortgage by using the property as collateral. Over time, that equity can be used to borrow at a low interest rate through a home equity line of credit (HELOC).
Perhaps the biggest and hardest measure of the intrinsic value of a home to quantify comes from its newfound role as sanctuary during a global pandemic. The value of a home in a time when social distancing could become the norm for years to come is immeasurable. Being cooped up with the people closest to your heart can be frustrating at times but can offer rewards well beyond its market value.
Although the economy has been turned upside down there will always be an economy as long as there is demand for something. Investment trends may come and go but the desire to own a home will always drive demand.
Payback Time is a weekly column by personal finance columnist Dale Jackson about how to prepare your finances for retirement. Have a question you want answered? Email firstname.lastname@example.org.
Knightscope Opens Investment Opportunity to Canada – GlobeNewswire
MOUNTAIN VIEW, Calif., May 28, 2020 (GLOBE NEWSWIRE) — Knightscope, Inc., a developer of advanced physical security technologies utilizing fully autonomous robots focused on enhancing U.S. security operations, announced today that it is able to accept investments in support of the Company’s Regulation A+ Offering from Canadian investors through FrontFundr. FrontFundr is Canada’s leading online investment platform offering access to select private placements. Investments from the U.S. and other international markets are still available through StartEngine.
FrontFundr founder and CEO, Peter-Paul Van Hoeken stated, “I see Knightscope as a revolutionary deal where all North Americans, retail investors on both sides of the border, can invest in a North American growth company in the business of building technology to reduce crime.”
“Knightscope has received countless inquiries from our northern neighbors wanting to invest in our technologies,” said William Santana Li, chairman and CEO, Knightscope. “It is with great pleasure that we are able to finally announce the ability for retail Canadian investors to purchase shares online with our new friends at FrontFundr.”
PURCHASE SHARES IN KNIGHTSCOPE TODAY
Knightscope is currently accepting accredited and unaccredited investors from $1,000 to $10M completely online. Click here to invest today.
Knightscope is an advanced security technology company based in Silicon Valley that builds fully autonomous security robots that deter, detect and report. Our long-term ambition is to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com. Follow Knightscope on Facebook, Twitter, LinkedIn and Instagram.
FrontFundr is Canada’s leading online private markets investing platform and an exempt market dealer. It provides startups and growth companies access to capital and gives investors access to private companies they believe in and want to support. It provides a community of over 16,000 retail investors with the ability to review and complete private placements on one digital platform. The company’s revolutionary technology allows users across Canada to invest in innovative growth businesses in under 12 minutes, starting from as little as $250. To date it has helped more than 43 companies raise over $35 million.
Knightscope and www.knightscope.com are operated by Knightscope, Inc. Investment opportunities in the Reg A+ offering are not a public offering, are private placements, are subject to long hold periods, are illiquid investments and investors must be able to afford the loss of their entire principal. There is no guarantee that Knightscope will register its shares with the SEC or any stock exchange. Offers to buy or sell any security can only be made through official offering and subscription documents that contain important information about risks, fees and expenses. You should conduct your own due diligence including reviewing in detail the Offering Circular and consultation with a financial advisor, attorney, accountant, or other professional that can help you to understand the risks associated with the investment opportunity.
This release may contain forward-looking statements regarding Knightscope’s proposed public listing of its securities and the timing thereof, projected business performance, operating results, financial condition and other aspects of the company, expressed by such language as “expected,” “anticipated,” “projected” and “forecasted.” These statements also include estimates of the pace of customer adoption of the company’s products, engineering developments and prototype capabilities. Please be advised that such statements are intentions or estimates only and there is no assurance that the results stated or implied by forward-looking statements will actually be realized by the company, or that the company will be able to consummate its planned goals (including without limitation, a public listing of its securities). Forward-looking statements may be based on management assumptions that prove to be wrong. The Company’s predictions may not be realized for a variety of reasons, including due to inability to raise a sufficient amount of funds, a lack of marketability for the company’s securities, failure of business operations, competition, customer sales cycles, and engineering or technical issues, among others. The Company and its business are subject to substantial risks and potential events beyond its control that would cause material differences between predicted results and actual results, including the company incurring operating losses and experiencing unexpected material adverse events.
John Hills +1 289 962 1708
'Should we invest our 2020 TFSA now, or wait a few months?' – The Globe and Mail
Here’s how I handle my TFSA contributions – I divide the total amount for the year, currently $6,000, by 26 and then have that amount electronically transferred when I get paid every two weeks into a TFSA investment account.
A reader recently asked about TFSA contribution strategies for this year: “We have yet to invest in our TFSA for 2020. Should we go ahead and invest now, or should we wait for another few months when the economy will hopefully begin to pick up again?”
I have no idea at the best of times about when the best time to invest is. Now, I’m more baffled than ever. The economy has been damaged and prospects for a comprehensive reopening seem uncertain at best, given the differing medical outlooks across the provinces. Will companies bring back all the workers they laid off? How many businesses won’t reopen? How much will economic activity be down overall six to 12 months from now? What about all the debt deferrals people arranged – what happens when they have to resume their usual payments?
Our world today is so much different than it was in early February, before pandemic fears hammered the stock markets. And yet, the U.S. stock market has charged back to the point where it was off only about 10 per cent in late May from its 52-week high and well above its level of May 2019.
I don’t get it, and I won’t fight it. My biweekly TFSA contributions continue, just as they did when the markets plunged in March.
As to that reader question, I can only suggest the gradual approach to TFSA investing. Academic studies have shown that lump-sum investments outperform the gradual approach, known as dollar-cost averaging. But this year is off the charts – why guess what’s going to happen?
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Rob’s personal finance reading list…
Never refrigerate bread
Tips from Consumer Reports on how to extend food expiration dates. Cut waste, and visit the supermarket less. By the way, coffee shouldn’t go in the fridge, either. Flour should, though.
Inflation: How big a problem will it be?
A lot of readers have told me lately they worry about inflation being ignited by all the money the government is pumping into the economy to offset the effects of the pandemic. This guide to inflation, deflation and disinflation should set minds at ease, at least until the good times resume.
How to avoid retirement myopia
Way too much retirement advice is tossed out in a general way, even if the needs and priorities of each generation are different. Here’s a different take – retirement guidance for people 25 to 40, 41 to 55 and 56+.
Make your own Starbucks drinks at home
A personal finance blog shares some cheap and cheerful versions of tea, lemonade and coffee drinks.
Q: Why you haven’t recommended five-year GICs as a possible safe vehicle for a portion of retiree funds? I have $50,000 in one earning 3.25 per cent, a higher rate than one- or two-year GICs or a savings account. It’s true I purchased when GIC rates were higher, but the principle remains the same.
A: I have written a lot over the years about how GICs make a good substitute for bonds or bond funds in diversified portfolio – they’re not as liquid as bonds in that there are stiff fees if you sell early, but they don’t jump around in price like bonds can. GIC rates are also quite competitive with bonds. The best rate on a five-year guaranteed investment certificate in late May was 2.3 to 2.4 per cent, while the yield on the five-year Government of Canada bond was just 0.4 per cent.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
How to report wrongdoing by an investment adviser.
Tweet of the week
Evan Siddall, president and CEO of Canada Mortgage and Housing Corp., takes on those who insist real estate prices can keep going up despite the economic damage caused by the pandemic.
In case you missed these Globe and Mail personal finance-related stories
- How advisers can help jobless Canadians avoid financial pitfalls
- Day-to-day banking proving to be a struggle for some isolated seniors
- A cottage agreement can make sharing a summer home simple
More Carrick and money coverage For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group. Send us an e-mail to let us know what you think of my newsletter. Want to subscribe? Click here to sign up.
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