Launch of Activist Investor - Smoothwater Capital
Smoothwater and Mitchell have made an initial investment by acquiring a 22.07%
interest in Calgary based Genesis Land Development Corp.. Smoothwater has
identified a number of initiatives that Genesis can take to significantly
improve its share value over time and is communicating with the board of
directors and like minded investors with the goal of having the company pursue
some or all of these options.
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TORONTO, May 21, 2013 /CNW/ - Garfield Mitchell, Chairman, is pleased to
announce the formation of Smoothwater Capital Corporation, and his partnership
with Stephen J. Griggs as Chief Executive Officer of Smoothwater Capital.
Under the leadership of Mr. Griggs, Smoothwater Capital will focus on
investing its own capital in small to mid-cap Canadian public companies where
the market is discounting the value of the assets or business and there is an
identifiable path to significantly improve the share value. Potential
opportunities include companies with poor corporate governance (such as
directors who lack independence or industry expertise), lack of a clear
strategy, ineffective management, poor strategy execution, an inappropriate
balance sheet, capital structure or use of cash, illiquidity of shares, and
lacking other key drivers of share value.
Smoothwater will work collaboratively with other investors to effect change in
targeted companies, particularly with institutional investors who hold
material illiquid positions but do not have the internal or legal capabilities
to actively pursue change or to participate at the board level or in corporate
decision-making.
"I am delighted that Stephen has agreed to join Smoothwater Capital as CEO,'
said Mr. Mitchell. "We have worked together very successfully in the past at
BPI Financial Corporation, and informally from time to time since then. I know
that together we can accomplish a great deal with Smoothwater and make a
difference in the Canadian capital markets by becoming a leading activist
investor".
"Activist investing is a logical next step in my business career, and I look
forward to working closely with Garfield again," said Griggs. "At CCGG, I
spent three years becoming a leading expert in corporate governance and
building strong relationships across Canada. Together, we intend to use
these skills and relationships and my background in investment management,
business and law to make investments in public companies that are trading at
well below their intrinsic value yet have a clear new pathway to significantly
increase value for all shareholders."
Smoothwater and Mitchell have made an initial investment by acquiring a 22.07%
interest in Calgary based Genesis Land Development Corp.. Smoothwater has
identified a number of initiatives that Genesis can take to significantly
improve its share value over time and is communicating with the board of
directors and like minded investors with the goal of having the company pursue
some or all of these options.