Post by
BNPResources on Jan 30, 2019 9:16pm
BNP - January 2019 - Letter to Shareholders
RE: December 2018 - January 2019 - Letter to Shareholders Dear Shareholders: The purpose of this monthly letter is to bring BNP shareholders up to date, on issues and news, since the last letter. The following is a summary of business development activities for this month: 1. We have focused our business lines into three separate divisions: (a) Acquisition and Divestment - This allows BNP to acquire / divest assets for a percentage fee of the transaction. Our first project is Marthas Vineyard (see more below). (b) Investment Capital Funding Agent - We have one client seeking $30 - $50 million in US funds. If we can match this team with investment capital, there is potential to earn up to a 5% commission. This is in the early stages. Most of the funds with capital are based in Chicago and New York. Canadian institutions still participate in funding Canadian resource companies, as long as the investment is outside of Canada. Standard / Southern has raised $18 million Canadian, to invest in Mississippi oil production. Opportunities exist for other Southern USA producers to be merged, sold or brought together with new management teams. (c) Hotel division Investing in hotels with potential for redevelopment and growth. The first two divisions require sweat equity, time, travel and promotion, but limited capital is required to get started. The third division, hotels, requires debt / equity capital, but once operational, provides a steady stream of cash flow. 2. Marthas Vineyard Project Revised and updated the business plan. Held focus meetings with Windsor, Ontario residents this past week. Determined their concerns, important issues and possible objections. This project will require a website to promote our interests, during the upcoming federal election. GoDaddy and WIX, were suggested by one of our shareholders, as a good, do it yourself website development package. I will be the webmaster and will release all information for this project, after the website is complete. Once we Go Live, by the end of April (my estimate, subject to reality), well see if this idea has any potential. If not, this division has a long list of assets, including refineries, and various assets, that can be combined with capital and a new management team. Our VPs of infrastructure and Government Relations are very involved with this project. 3. Investment Capital Funding Agent Started looking at active hedge funds in the Chicago area. No meetings arranged yet. Management team has been identified, that is seeking $30 - $50 million US. One deal could allow us to raise $1.5 million in commissions. 4. Hotels: - 200 Unit Hotel in Grande Prairie Working on business plan and pro-forma. This project will succeed based on increased activity driven by the Kitimat LNG project. A spring election is planned for Alberta, which should contribute towards an improving economy. - Identified a 775 room hotel in Dearborn, Michigan, that has just been shutdown, by the latest 2016 Canadian owner. This hotel was purchased for $20 million US, by Edward (operated as Edward Hotel), from Toronto. We estimate that it can be purchased for $25 million US, and refurbished for $50 million US, at a cost of $100,000 per door (total). In addition, this hotel has a convention center. Our plan is to go back to the Hyatt name, original business plan, and utilize the facility as a year round Michigan convention hotel. Convention hotels compete for corporate business throughout the USA, and this facility is just 12 miles from the airport. The Hyatt brand is very strict and all hotels must be in good as new condition. 5. At the request of a GTA shareholder, we looked into the possibility of a small marijuana business, now that it is legalized in Canada. The regulations are set up to guarantee the GOC a steady stream of income. The cost of renting a small commercial space is $120,000 per year, plus City of Calgary Business Taxes. There are many rules on the size of the business and the way it is run. After looking at the regulations, it appears that there will still be a duty free underground economy operating, and offering discounts compared to the government regulated product. This will be unfair competition, not allowed for, in the business models, that have been developed by the current operators. In addition, many may decide to grow their own, and share with friends, rather than pay the tax. We require 3-5 years of sales data to determine the actual market potential and profitability. Banks do not currently support this industry with receivable financing. This could be another new industry for private finance loans, by enterprising investors.