Date: June 27, 2018
C2W Music Limited held its Extraordinary General Meeting (EGM) today June 27, 2018 at the Jamaica Stock Exchange Limited. The formal introduction of the speakers was given by Ms. Lamar Harris, CEO of Stocks and Securities Limited (SSL). She noted that, ‘During the Annual General Meeting of C2W, the company initiated a rescue plan and have submitted the relevant documents to regulators.’
Mr. Drew Gray, CEO of SSL Venture Capital, mentioned that final approval from the Financial Services Commission (FSC) and Jamaica Stock Exchange (JSE) with respects to the rescue mission that was proposed for the company was granted. He elaborated on the junior market rules that allows a rescue which states, “that if a company is in financial crisis a rescue can be conducted and the rescuer can be granted a waiver from making a mandatory share offering to all the shareholders and as such offers were made solely to Derrick Wilkie and Ivan Berry. This decision was made in the best interest of the company and ultimately shareholders.”
“Historically C2W financial performance has been lackluster where revenues have been unpredictable since the initial public offering (IPO), consistently having an earnings per share (EPS) of $0.0 and assets are significantly lower than its liabilities,” he added. As part of the rescue mission Mr. Gray mentioned that, “Stocks and Securities currently holds 26% of the C2W shares and will hold the additional 54% becoming the majority shareholder owning 80%.” The plan is to recapitalize C2W with a US$850,000 capital injection to revitalize the company and execute the business plan. The post rescue mission entails the formation of SSL Venture Capital (formerly C2W Music Limited) and gives the C2W shareholders the option of retaining their shares.
“C2W operations will not change, as Ivan and Derrick have committed to stay on board and to continue to work the music catalogue but will only be an ancillary source of revenue” as noted by Mr. Gray.
There will be another EGM once SSL takes full control where the resolutions will be passed including the name change to SSL Venture Capital Jamaica Limited as well as the implementation of the company’s board and management team. This company will be specialized in making investment to startup companies that show great potential to grow within the next 3 to 4 years.
According to the company, the SWOT Analysis – SSL Venture Capital is as follows:
Strength
- Strong relationships have been established with existing and potential portfolio companies
Weakness
- A lack of liquid capital to be able to negotiate with any portfolio company to get on board
Opportunity
- More attractive for equity investment to entrepreneurs as the banks interest rates are currently high
Threat
- Poor performance of the portfolio companies will result in decline in revenues
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