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Sygnus Credit Investments Limited team led by co-founder and Chief Investment Officer Jason Morrison, co-founder and CEO Berisford Grey, and co-founder and director Dr Ike Johnson (File photo)

Sygnus APO extended to December 30

Sygnus Credit Investments Limited team led by co-founder and Chief Investment Officer Jason Morrison, co-founder and CEO Berisford Grey, and co-founder and director Dr Ike Johnson (File photo)

The equities market has not been as robust as expected towards the 3.3 billion additional public offering (APO) by alternative investment company Sygnus Credit Investments (SCI), which has decided to extend its offer by one week.

Sygnus Credit Investments Limited team led by co-founder and Chief Investment Officer Jason Morrison, co-founder and CEO Berisford Grey, and co-founder and director Dr Ike Johnson (File photo)

The APO, for up to 196,372,431 new ordinary shares, which was scheduled to have been closed on Wednesday, December 23, will now close on December 30. The slow take up could be explained by the contending investments options available on the equities market.

They include Derrimon’s APO, Key Rights Issue and Alliance Finance initial public offering. SCI is seeking to raise upwards of US$32 million ($4.8 billion) in its APO, if upsized by an additional amount of 82,271,772 shares. The price per share for the general public is US$0.14 per US$ share and J$16.30 per J$ share.

The Sygnus Credit Investments management team pause for a frame at company’s annual general meeting, held at The Jamaica Pegasus in New Kingston, on November 27, 2019. (Photo: Christopher Lewinson)

SCI has agreed to have a discounted share price for existing shareholders and team members of US$0.127 per US$ share and J$14.70 per J$ share. SCI is the lead arranger for the APO while Sagicor Investments Jamaica and NCB Capital Markets will act as joint lead brokers.

APO PROCEEDS NEEDED FOR UPCOMING INVESTMENT DEALS

The proceeds from the offer will be used for pipeline investments as well as growing the three-year-old company. The St Lucian-based company plans to use the proceeds of the APO for their upcoming deals valued at around US$40 million ($5.7 billion).

SCI Chief Investment Officer Jason Morris disclosed that the three-and-a-half-year-old company will be using part of the proceeds from the APO to deploy capital to the British Virgin Islands along with the Eastern and Dutch Caribbean, which arose from the partnerships built over time. He revealed that SCI would be increasing its leverage and would possibly seek board permission to raise more debt for two to three deals based on the outstanding amount to be raised.

SCI has managed to thrive in the pandemic based on its first-quarter net profit which rocketed by 51 per cent to US$797,840 ($119.1 million) for September 30. The alternative investment company has continued to benefit from no realised credit losses on its private credit investments, a feat it has maintained since inception.

PORTFOLIO OF INVESTMENTS SURPASSING THE US$50 MILLION

Portfolio of investments has surpassed the US$50-million threshold for the first time. At the same time SCI generated a record US$4.5 million in total investment income and US$1.97 million in net profits, which was 3.8 per cent less than the prior year record of US$2.05 million.

Since its initial public offering in May 2018, SCI has returned US$3.8 million or 10.9 per cent of share capital to shareholders in the form of dividends. In only two years, SCI has delivered on its promise to pay out up to 85 per cent of net income in dividends.

–Durrant Pate