GreenBank’s current investment portfolio
In addition to funding, GreenBank provides corporate advice and board of directors participation with the objective of seeking a public listing for investee companies on North American or European Exchanges.
A company that has developed the Eflex app, designed to improve transaction transparency for people donating money.
Greenbank Capital purchased a 25% shareholding in Flex Capital, a company that has developed the Eflex app, designed to radically improve transaction transparency for people donating money across a variety of industries and encourage communities of donors to communicate together and develop, from football clubs to charities and everything in between.
The charity sector, for example, receives many tens of billions of dollars of donations per annum worldwide, but the level of transparency in how the money is spent is minimal, and the related gratification a donor receives – as a result of not knowing how the money they donated has tangibly helped – is therefore correspondingly small.
In contrast, if a donor knows that the money they have donated is helping a specific good cause and can actually see the manner in which their specific contribution is deployed, the level of donor gratification – and therefore willingness to help more – radically increases. The Eflex app not only provides that level of transparency, but also encourages communities of donors to develop as like-minded people see their collective donations at work, which in turn can help promote the good cause by encouraging others to join.
Eflex will generate revenue by charging a transaction fee from each transaction processed through the app and by providing service support where needed. Total transactions are expected by Eflex to eventually exceed C$1bn per annum.
UK-based, fast growing and profitable online grocery delivery platform.
GreenBank Capital has reached agreement to acquire a significant shareholding in, and provide merchant banking services to, Beelivery the UK-based, fast-growing and profitable online grocery delivery platform. Unlike virtually all its competitors in the on-line grocery delivery sector, Beelivery’s highly advanced and proprietary online ordering and logistics algorithms, combined with its low-cost model, have enabled Beelivery to achieve profitability already, whilst the big names in the industry, including the likes of Ocado, continue to struggle to make their businesses profitable. Beelivery, which specialises in quick delivery, provides two delivery options – “now” which offers delivery within 60 minutes (achieving an average of 46 minutes across the whole of the UK) and “today” which offers delivery slots with the following 24-hour period. Orders can be placed by customers, and deliveries are carried out by a team of independent drivers, 24/7, 365 days a year.
Beelivery, which sources its line of products from any grocery outlet local to the customer, currently has over 20,000 delivery drivers serving UK customers. Unlike most of its competitors Beelivery has more than 90% nationwide coverage and average delivery times of only 46 minutes.
Beelivery was founded in 2015 and currently has over 90,000 customers. Just under £8m (C$14m) of orders were handled in the last financial year to September 2020 generating a profit at an EBITDA level. Having demonstrated the robustness of its business model Beelivery is now raising money to rapidly scale the business and to expand both in the UK and overseas, with management targeting orders of over £370m (C$645m) in the year to end September 2023.
GreenBank has therefore agreed (and has been granted a 65-day option) to invest £2.5m (C$4.36m) for an initial 5.883% of Beelivery, subject to Beelivery satisfying certain conditions. GreenBank has also been granted a two-year option to acquire a further 20% of Beelivery for £40m (C$70m).
Beelivery has also agreed to appoint GreenBank as its merchant bank with a view to listing on the Canadian Securities Exchange or other international exchange as soon as possible, and to act as adviser on any future fund raisings. GreenBank will also appoint one director to the Board of Beelivery.
St Georges Eco-Mining Corp
Canada-based company developing technologies to solve some of the common environmental problems in the mining industry.
GreenBank Capital agreed to purchase an initial one million St-Georges Eco-Mining Corp (“St-Georges” or “SX”) common shares from a significant SX shareholder in exchange for 1,444,444 GreenBank common shares at C$0.45 per common share and 722,222 three year warrants to subscribe for GreenBank shares at C$0.50 per common share. The price per SX share being paid by GreenBank is therefore C$0.65.
St-Georges (CSE: SX, OTCMKTS: SXOOF, and FRA: 85G1) recently closed a C$9.7m fundraising, and is focused on exploration for Canadian energy metals and for gold in Iceland while developing extraction technologies that are reducing the environmental impact of mining activities. In line with this philosophy St-Georges also has an important wholly owned subsidiary, EVSX Corp, that owns proprietary technology potentially capable of helping to solve the next big environmental catastrophe to face the world – the little appreciated dangers associated with the future disposal of so many electric car batteries, as the car industry aims to reduce carbon emissions whilst failing to address the huge environmental impact of so many used batteries.
GreenBank Capital has a further option to acquire an initial one million St-Georges shares, and have the right to purchase an additional 500,000 SX shares at the closing price of SX shares on 30 September 2021, subject to a minimum price of C$0.50 per SX common share. This additional purchase would be paid for by issuing new GreenBank common shares at the closing price of GreenBank shares on 30th September 2021, subject to a minimum price of C$0.45 per GreenBank share.
In tandem with the SX investment GreenBank Capital has also agreed (subject to contract) to purchase a 25% shareholding in Flex Capital (“Flex”), producer of the Eflex app designed to radically improve transparency and engagement within specific groups and communities, from football clubs to charities and everything in between.
Gatwick Land Valuation
13 acres of land near Gatwick Airport, United Kingdom
GreenBank Capital’s portfolio company Staminier holds an option to purchase 13 acres of land near Gatwick Airport for £6.0m. Recently comparable land has sold a t value which would value the optioned land at £19.50m (C$34.0m) if the land is allocated as Strategic Employment Land, and up to £39.0m (C$68.0m) if and when formal planning/zoning consent is obtained.
The 13-acre parcel of land is surrounded on three sides by 64 acres which has already been included as Strategic Employment Land in the proposed Local Government Plan, of which there have been recent sales for circa £3 million per acre of equivalent land with consented permission. Staminier intends to apply for the 13 acres to be allocated as Strategic Employment Land and expects the process to be completed by Q1 2022. Given the surrounding land which envelopes the 13 acres has already received this allocation to the Local Government Plan, it is reasonable to expect that the 13 acres would be treated in a similar manner. If such allocation were made, estimating the land value to be a minimum of £19.50m (C$34m) would be conservative by only forecasting 50% of recent sale comparables.
On the basis that Staminier continues to own the option and successfully applies for planning permission, the value could potentially increase to £39m (C$68m).
The Substantia Group Ltd.
United Kingdom based property and business consultancy
GreenBank Capital’s portfolio company Staminer has signed a Letter of Intent to acquire 100% of The Substantia Group Limited, a UK-based property and business consultancy offering clients a wide range of outsourced services. Substantia works with or for Blue Chip companies and independents alike based both in the UK and overseas including: British Land Plc, U&I Group Plc, Netflix, Sainsburys, Morrisons, CAA-GBG, Aitch Group, Optivo, L&G and for local authorities including Bromley, Bexley, Lewisham, Greenwich, Gravesham, Croydon, Havering, Chichester and Tower Hamlets in the UK.
Substantia has a contracted pipeline of development projects which it is undertaking either on its own account (taking options over land and pursuing planning/zoning gain) or on behalf of clients (as adviser or project manager) for a total gross development value exceeding £800m (C$1.4bn) over the next five years. Expected profit due to Substantia over that period is £15m (C$26.25m). Had Substantia been able to buy or option the land and fund the planning process itself, rather than source and negotiate the projects mainly on behalf of clients, the likely profit accruing to Substantia would have exceeded £80m (C$140m). This very material difference in profitability, linked to the availability of funds to independently deliver planning potential, is a key reason for the decision by Substantia to seek access to capital markets for the necessary funding to be available for similar future projects.
The acquisition also has compelling logic in relation to the indirect benefit accruing to the wider Staminier Group – both in relation to Staminier’s early-stage steel framed homes company Eco Space 41 (“ES41”) and in relation to the development land which Staminier has taken options to acquire.
P&H Motorcycles Ltd.
United Kingdom based distributor of motorcycles
GreenBank Capital portfolio company Staminier Limited seeks to enter the Electric Vehicle (“EV”) Motorcycle Market by acquiring the South of England’s largest distributor of motorcycles. Staminier Limited has entered into a 45 day option agreement to acquire P&H Motorcycles Ltd (“P&H”), the South of England’s biggest distributor of high-performance motorcycles, including Ducati, Yamaha, Kawasaki, Suzuki, KTM, Scrambler and Honda.
The average monthly sales of P&H over the last three years has been approximately C$1.7m per month (C$20m per annum) and the business has sold motorbikes and accessories to over 150,000 unique customers in its 40 year history of success.
During the global pandemic P&H has seen demand for smaller 125cc bikes increase significantly and P&H and Staminier see considerable scope for expansion into the lower powered motorcycle market. However, both companies see the greatest area of expansion as supplying the likely substantial increase in demand for electric powered motorcycles and scooters and P&H, with its powerful market position and highly extensive database of motorcycle clients and enthusiasts, is best placed to capitalize on the forthcoming transition from conventional bikes to electric power.
P&H has net assets of just over C$1.7m including freehold property valued at C$4.25m sited near London Gatwick and is an ideal location for servicing the expected fast growth in EV demand. Despite the pandemic P&H is currently profitable on a month to month basis and expects to generate net annual profit of not less than C$425,000 in 2021.
United Kingdom based Drug Discovery Company
GreenBank Capital and Pharmakure (www.pharmakure.com) have signed an LOI agreeing (subject to contract) that GreenBank Capital will be appointed as Pharmakure’s Merchant Bank in order to help list Pharmakure on the CSE and other international exchanges. Under terms of that appointment GreenBank will receive fees in cash and Pharmakure stock worth CA$925,000 at the lower end of the anticipated floatation valuation.
Pharmakure is the pioneer of a very important and potentially revolutionary treatment for Alzheimer's. Pharmakure targets ‘remediation’ of the disease using two re-purposed approved drugs. Because the drugs are already approved by regulators, Pharmakure can move immediately to Phase II Clinical Trials, thus avoiding pre-clinical and Phase I trials which can take years and cost many millions of dollars. Subject to successful listing on the CSE, institutional investors have committed to provide funding of up to CA$26m to finance these Phase II Clinical Trials and to progress Pharmakure’s other pipeline drugs.
Asset Management Platform
GreenBank Capital’s 19% owned portfolio company Staminier Limited (and where GreenBank has an option to increase to 100%), a United Kingdom-based Merchant Banking firm, invested in 400,000,000 Freeway Tokens as a first step in a planned collaboration with AuBit (www.aubit.io). AuBit is the pioneering asset management platform being created by AuBiT International to help to service the needs of institutional, professional and retail investors in the multi-trillion dollar global asset management industry.
Freeway Tokens are traded on several crypto currency platforms and have a strictly limited maximum supply of only 10bn. Based on the midmarket price at 8 am GMT on 12 November 2020, Staminier's holding of Freeway Tokens had a market value of approximately US$3.2m. Within a week of making the investment, the value of the investment had doubled.
TRU Precious Metals
Gold exploration in Central Newfoundland
GreenBank Capital’s 47.7% owned portfolio company GBC Grand Exploration sold its Twilite mining property to TRU Precious Metals (www.trupreciousmetals.com) for 1,435,000 common shares of TRU (TSXV:TRU) at a deemed price of $0.25 per share. In addition, TRU paid $100,000 cash and agreed to pay a 1% net smelter royalty on any future mineral production from the property. TRU will pay up to a further 1,000,000 shares based upon certain production levels being achieved in the future.
This represents a significant return on GreenBank’s initial nominal investment to acquire its 47.7% ownership which was largely in return for providing merchant banking services. At the time of the sale, the value of GreenBank’s pro-rata portion of the cash and stock paid by TRU Precious Metals was over $250,000 but continues to increase as TRU’s stock price appreciates. GreenBank also stands to earn more from this transaction based upon future performance of the Twilite property.
United Kingdom based merchant banking business
19% of Staminier Ltd., with an option to increase to 100%, a United Kingdom based venture capital and merchant banking business whose overall strategy is to acquire substantial interests in undervalued fast-growing companies with at least five years profitability and proven cash flow. Staminier also provides private and public companies with business advisory, corporate finance and marketing services.
Ubique Minerals Limited
Minerals exploration company with interests in Newfoundland, Canada;
22% of Ubique Minerals Limited, a zinc exploration company in Newfoundland, Canada. Ubique owns claims around the former Daniel’s Harbour zinc mine situated approximately 10 km northeast of the town of Daniel’s Harbour on the west coast of Newfoundland. Ubique is currently undertaking a drilling project on the property, and it is interesting to note that the claims adjacent to Ubique’s claims are primarily owned by Altius Minerals Corporation, a Newfoundland mineral explorer with a $500 million market cap. With approximately 7,000,000 tonnes averaging 7.8% zinc having been mined from the Daniel’s Harbour mine, GreenBank has high hopes for its investment (Wardle, R.J. (2000) Mineral Commodities of Newfoundland and Labrador - Zinc and Lead; Government of Newfoundland and Labrador, Geological Survey, Mineral Commodities Series Number 1, 12).
Kabaddi Games Inc.
Developers of a mobile application game that is based on the sport of Kabaddi
59.5% of Kabaddi Games Inc a mobile application game that derives from the very popular sport of Kabaddi. The Kabaddi game is currently in beta form, and version 1.0 is anticipated to be released soon. The sport of Kabaddi is the second most popular sport in India, after cricket, attracting 430 million television viewers during the 2014 inaugural televised season of the Pro Kabaddi League. The sport of Kabaddi is a cross between freestyle wrestling and rugby that tests speed, agility and power. Two teams of seven players each take turns in sending an individual “raider” to tag an opponent. If the raider is wrestled down by a defender he is suspended temporarily until his team wins him back by tackling the opposition’s raider. The game is fast paced and the winner is declared in 40 minutes. Kabaddi is played in about 65 countries.
Reliable Stock Transfer Inc
Canadian small cap transfer agency;
10% of Reliable Stock Transfer Inc, a Toronto based transfer agency focused on providing transfer agency services to public companies listed on the Canadian Securities Exchange. Reliable provides stock transfer services for small cap public companies at competitive rates. Services include processing of transfers, shareholder reports, obtaining CUSIP and ISIN numbers, acting as escrow agents, acting as scrutineers for shareholder meetings, providing stock options and warrant services, shareholder mailing services, and processing treasury directions
GBC Grand Exploration Inc.
Minerals exploration company with interests in Newfoundland, Canada
47% of GBC Grand Exploration Inc, which has recently announced the disposal of its principal property, the Twilite Gold Property in Newfoundland, to Trius Investments in exchange for cash and Trius common shares. Comprising 65 claims located 14km southwest of Grand Falls-Windsor. The Twilite property features low-sulphidation epithermal-style gold mineralization and shares geological characteristics in common with the Moosehead bonanza-style gold property located 30 km to the northeast. A NI-43-101 Report on the Twilite property is underway. Also included is the Browning property comprising 24 claims located 2km south of Pollards Point, Newfoundland. The Browning Property includes the Browning Mine, which produced 149 ounces of gold in 1903. The Browning Mine is the best-known gold deposit in the area and has the distinction of being one of the first-producing gold-only deposits on the Island of Newfoundland. On the Browning property, gold mineralization is epigenetic and is associated with mesothermal-style quartz and quartz-carbonate veins that typically also contain base-metal sulphides such as pyrite, chalcopyrite, galena and sphalerite. Iron carbonate alteration is spatially associated with gold-bearing veins at the Browning Mine (Kerr. A, Current Research (2006) Newfoundland and Labrador Department of Natural Resources Geological Survey, Report 06-1, pages 61-90).
Blockchain Evolution Inc
Owners of the world’s first identification based blockchain;
52% of Blockchain Evolution Inc. which owns the technology behind the world’s first identification-based Blockchain. Its mission is to engage in software development and marketing of identification-based blockchains, and deploy the technology in a wide array of uses. Blockchain Evolution’s 100% subsidiary Xbook Network Inc is developing a user permissioned social media platform empowering users to control access to their personal data, and which shares 50% of Xbook revenue with Xbook users. Xbook is utilizing Blockchain Evolution technology to provide the critical user identification infrastructure that is needed to accurately and securely record data for both users and advertisers. The potential for blockchain technology in the FinTech space, as well as other uses, is significant.
Minfocus Exploration Corp
A TSXV publicly listed minerals exploration company
Approximately 8% of Minfocus Exploration Corp (TSXV: MFX) a publicly listed minerals exploration company. GreenBank acquired its investment in a private transaction.
Gander Exploration Inc.
Minerals exploration company with interests in Newfoundland, Canada
34.75% of Gander Exploration Inc has its principal property the Cripple Creek Property in Newfoundland, comprising 65 claims located 25km north of the town of Gander. Between 2011 and 2013 Capstone Mining Corp (TSX:CS) completed airborne geophysical, soil sampling and mapping surveys on the Cripple Creek Property, as well as a 10-hole drilling program in 2013. The highlights of the drilling program were 9.28m of 2.98 copper; 3.6m of 4.74% copper and 0.16 g/t of Gold. The drilling program also discovered awaruite in several drill holes (Capstone Mining Corp, Newfoundland Geological Survey, Assessment File 2E/1823). Previously, in 2005, seven grab samples from the property yielded significant gold, copper and silver values, including up to 19.8 g/t gold, up to 10.2% copper, and up to 21.9 g/t silver (P.H. Davenport, L.W. Nolan, A.J. Butler, H.A. Wagenbauer and P. Honarvar, 1999 The Geoscience Atlas of Newfoundland, Newfoundland Department of Mines and Energy, Geological Survey, Open File NFLD/2687,Version1.1).
Inside Bay Street Corporation
A financial news communications business;
19% of Inside Bay Street Corporation, a financial communications company. An online portal that offers dissemination of company news by way of press releases, research reports and commentary which is distributed to brokers, investment dealers, and investors. It also provides exposure to small cap companies in its Featured Companies section. The website is currently being modified and upgraded to add features that will enhance the portal in order to attract a larger user base of investors and small cap growth companies, and it will re-launch in the near future.
The Lonsdale Group LLC
USA based private equity company focused on small cap investments;
10% of The Lonsdale Group LLC which is a USA private equity company feeding deals and investment opportunities to GreenBank. It was founded in 2008 by David Lonsdale, a GreenBank director, and the former President of Allegiance Capital Corporation, a private investment bank focusing on mergers and acquisitions. Lonsdale has minority investments in a number of diversified private companies comprising data protection, emergency response technology, insurance products, telecommunication testing equipment, technology marketing platforms, and medical alert technology. In addition to equity financing, Lonsdale Group plays an active advisory role in helping its portfolio companies grow.
Buchans Wileys Exploration Inc.
Minerals exploration company with interests in Newfoundland, Canada;
25% of Buchans Wileys Exploration Inc. Buchans Wileys is an exploration stage company who is seeking attractive mineral properties situated in Newfoundland Canada. The Newfoundland area has seen a dramatic increase in renewed interest due to some exciting discoveries over the past decade, and Buchans Wileys seeks to take advantage of this trend.