BRLGF was a special situations watch list add (1/23/2015)
It was $0.05 a share in Dec 14, got bumped up to $0.18 in January... traded around $0.20 to $0.25 for a bit...
BRLGF last trade was in April, at $0.78, then reorganized as Founders Advantage Capital Corp BRLGF to BRLGD in May of 2016, on 5/19/2016 with a 1 for 15 reverse split... making $0.20 shares now around a $3 basis. Peaked at $6.20 in May of 2016, a steady decline ever since. Yahoo has it trading now as FCF.v... down to $1.15 now... down to around $0.08 a share equivalent from the $0.05 to ~$0.20 a share in early 2016... but after having distributed a dime. Growth seems real. The flow of money seems to be supporting the businesses, the debt repayment, and the growth.
Yahoo statistics should be self explanatory: Yahoo. Debt around $90 million, BV $2 a share, 24% growth in revenues... Only 2.4 million shares... about the same in warrants at $1.44 now, but they're held by the lenders.
Its the typical small business sleeper... will never generate much market excitement, likely will sell at a discount to asset value as long as it plods along... but all it has to do is pay down debt and keep growing... and it will create a lot of long term value. Recognition events in the future might not happen ? If it restores the dividend at some point, its the sort of thing that will pay for itself and more... otherwise, if it sells off a business... or adds a new business... ? If the expansion continues... the revenue keeps growing ? It is an out of favor idea... which is what I want...
I haven't done an analysis of the risk, yet... nor have I dug into the management or the debt structure to figure out the relationships...
Website: Founders Advantage Capital
Recent Letter:
Just suspended the dividend, to pay down debt. after paying out $0.10 in eight payments, also reworked agreements with the lenders to remove limits on early repayment... and lowered exercise prices on 2 million warrants from $3.50 to $4 down to $1.44.
Portfolio Companys are:
Astley Gilbert: Print services: photo/design/pack and ship. Twelve locations in cities around Ontario.
Club 16 / Trevor Linden Fitness: Ten (eleven soon) fitness clubs in greater Vancouver B.C. area.
Dominion Lending Centres: Franchisor of mortgage brokerages, equipment leasing, credit cards.
Impact Communications: Two way handheld radio and aAccessories based in Kelowna, wholesale, catalog, consumer direct, and online sales. |
