I've been doing somewhat of a deeper dive...
In 2000 year end financials the Company "Head/Registered Office" is at 222 Bay Street, Suite 3000, for those that don't know that's the East Tower of the TD towers owned by Cadillac Fairview in Toronto, 222 Bay is a 31 floor tower that I've worked in may of times in construction... Through Cadilac Fairview's own tenant information and the tenants website, the ACTUAL tenant is Norton Rose Fulbright a rather sizeable lawfirm. (if I remember correctly they are on 3 connected floors in the tower, or I might be thinking of anouther firm)
Now if you Google the address you will find a few other businesses with the same address information, it seems that it is just an address to have on filed paperwork likely prepared and operated by Norton Rose Fulbright... so what I'm getting at is the company has no legit office and seems like only lives on legal paper.
Ive also found this interesting piece in the filings:
In 2017, the Company entered into a limited partnership agreement with Automotive Finance Limited Partnership (the "Partnership"). Automotive Finance GP Inc. is the General Partner of the Partnership and it is an entity controlled by a shareholder exersizing a significant influence. The company is the sole limited partner of the Partnership and makes investments indirectly through the Partnership. (see note 6)
Note 6: In March 2017, the Partnership entered into two financing agreements with entities controlled by a shareholder exersizing a significant influence, pursuant to which the Partnership loaned an aggregate of $33,333,333. In May 2017, the Partnership entered into financing agreements with entities controlled by a shareholder exersizing a significant influence, pursuant to which the Partnership loner an aggregate of $43,000,000. The investments earned interest at 10.5% annum and had a 25-year term. The loans were disbursed at the end of June 2017 and repaid in August 2019.
It seems this company is a shell entity and has no assets or loans, be we pay 2 or 3 board members wages who have other jobs and the dividends are paid out of the remaining capital available sitting dormant in an account that seems to gain no interest. It also seems that we were never going to know where the money was going to be invested... I wonder if these loans were used of fund that start up of these Manager's personal business/investments and then were repaid when they got off the ground and now they just collect fees and file paperwork every few months just so no one raises a flag (which I might seem to have done) but in turn is legitimately legal I guess.
It seems shareholders are holding a bank account that will eventually run out and the game being played is how much will you pay for a 10% yeild before the music stops? It seems like the music has 8-10 years left but we will have to look deeper at the next end of year end filing.
I could be completely wrong and hope I am, but this is my current understanding of what this is... I'm not running for the exit in understanding this tho as it seems that the price is holding up well and the payout seems worth the risk, but it means I'll want a tight stop for if the deck of cards finally breaks down. It actually seems like a interesting play with only 1 risk (the money running out) to trade in a range of 2.00-2.10.. which can mean 5% gain unless you get lucky and get a lower pop or a higher spike and if you get caught in longer than expected or pass 'GO' with and Ex-dividend date you get just under a 1% payout...