Alaris Royalty Corp ALARF

Industrials Conglomerates

"Alaris Royalty Corp is engaged in investing in operating entities. Its operations consist primarily of investments in private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, loans receivable, or long-term license and royalty arrangements."

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Alaris Royalty Corp > Sandbox

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Comment by maypeterson Mar 05, 2020 6:28pm

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Post# 30772720

RE:RE:RE:RE:Sandbox

Almost looks like the co-founders of Sandbox committed fraud. To get $5M on a $40M investment back is just getting rid of the business instead of putting in more to sustain. Oh well - it is more than what Sears Home gave who ate up all the money without paying AD even one distribution.

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On a cost of US$40 million and considering the receipt of US$18.2 million in distributions and US$5.1 million received on exit, the total return will be between -28% and -42% on its preferred units depending on amounts held in escrow and the earnout being collected. Inclusive of the debt, the Corporation will realize an IRR of between -9% and -16% over the four-year investment period;

On March 4, 2020, the Corporation initiated a dispute process that could lead to legal proceedings against the co-founders of Sandbox, asserting damages incurred by Alaris and Sandbox Acquisitions LLC. Due to the ongoing legal matters, Alaris will not be able to provide comments on anything outside of the financial impact the Sandbox Sale had on Alaris' Q4 2019 earnings.

Capharnaum wrote:

maypeters wrote: You would think that they do especially after helping them out for buying out the other senior lenders.

In theory - it would be possible that the owners can sell the companies for pennies on the dollar to a friend at arms length and get it back later on if AD has no say in it.

The handling of the sandbox investment is a disaster. Imo they didn't want to drag it like they have with other bad investments so they accepted a lowball offer to get rid of it. I'm concerned by the quick valuation changes.