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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 Credit Investment shareholders to decide on APO September 29

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 Credit Investments (SCI) Limited will seek the approval of its shareholders to raise new capital from an additional public offer on Tuesday, September 29, 2020.

In April this year, SCI indicated, through a notice on the Jamaica Stock Exchange (JSE) website, that it had received the backing of its board of directors to issue new shares in order to access new capital.

However, as part of its regulatory obligations, SCI must also secure majority support from its shareholders to pursue the additional public offering.

In a notice dated August 19, the company invited its shareholders to an extraordinary general meeting on Tuesday, September 29, 2020, to consider and pass a resolution on raising “additional equity investment by an issue of ordinary shares… by way of a secondary invitation to the public to subscribe for such shares (herein an ‘Additional Public Offering’)”.

At the company’s annual general meeting (AGM) in November last year, Chief Investment Officer Jason Morris told shareholders that the company had received approval from the board of directors to raise an additional US$35 million in new capital through both debt and equity.

Subsequently, in January, Chief Executive Officer of SCI Berisford Grey told Caribbean Business Report in an interview, “We have already raised US$15 million of that and are in the process of deploying that amount.”

Chief Executive Officer of Sygnus Credit Investments Berisford Grey (Photo: Chris Lewinson)

He further told this publication that the company will announce soon what means it will use to raise an additional US$20 million. This the company did in April.

More Caribbean investments

With investments in several Caribbean jurisdictions —  Cayman Islands, St Lucia, Barbados, and the ABC islands, and Jamaica — SCI is eyeing even more opportunities in The Bahamas, Guyana, and Trinidad and Tobago.

A section of Oranjestad, Aruba (Photo: WestJet Magazine)

For the nine-month period ending March 31, 2020, SCI reported a 38.6 per cent increase in net investment income, which reached a record US$3.43 million for the company.

Notwithstanding, the company reported net profit attributable to shareholders of US$1.28 million for the period — or US$652,5000 (33.8 per cent) lower than the US$1.93 million recorded for the nine months in 2019.

The lower-than-expected profit, SCI said, was due to costs associated with the newly acquired debt, since the interest income generated from the deployment of the funds was not realised in the period under review.

Ready for COVID-19

In relation to the coronavirus pandemic, which began impacting Caribbean countries in March, SCI said it was entering “the crisis from an advantageous position”.

SCI revealed that it had ample liquidity, very low debt, a resilient portfolio companies diversified across many regions, and an unprecedented market opportunity for the alternative financing channel.

However, the company has yet to produce statements on its overall financial performance for the year ended June 30, 2020.