ARCTIC GROUP AGP-ase warrants also trade AGP.WT
The stock first began trading in Apr. 97 after an IPO of just under 2.7M shares(which now is the current float of free trading stock) @ .75 with one warrant attached excercisable @ $1.00 before the end of Feb. 98 and $1.25 before the end of Feb. 99.
The Arctic Group currently has four packaged ice companies operating in Winnipeg, Regina, Calgary and Vancouver. Majority of revenue is derived from packaged ice sales, but in some areas up to 15% of income is from bottled water sales. The companies have long established majority market share positions in areas served and have been profitable for years. On the surface, this looks like another boring small cap earnings stock. What makes this story interesting is the growth potential through acquisitions.
The packaged ice industry in North America is estimated at $2.5 billion U.S. annually. As of yet, there are no dominant forces, or players established in this still "ma & pa" type industry. The Arctic Group is the first packaged ice company in North America to begin publicly trading its shares. They are also the first company to undertake a serious attempt at consolidation in the "independently
owned" North American packaged ice industry. As a sideline note: A director of AGP also sits on the board of directors of the Loewen Group. Most investors know the story of the funeral home industry consolidation and the Loewen Group's part in it. Forget any future AGP acquisitions, I believe current replacement value of company's existing hard assets (no goodwill inc.) puts little, or no downside at
current share prices $1.04 - $1.10 range. Outstanding shares currently are very tightly held.
I myself was involved in the packaged ice business in the vancouver area from 84 to 93. I believe my experience in the business, gives me a good idea of the true replacement value of the assets currently owned by AGP. I have been in business with management of AGP in the past and I know them to be businessmen with integrity and long established track records, in both the private financing and industrial sectors. I own shares of AGP, so I am counting on AGP management to parlay their private company success stories into the public sector as well. I believe they have what it takes and over time, will do the right things fo shareholders.
I was asked to answer any incoming investor inquires about AGP on the toll free line 1-888-573-9237 when the company began running an ad in the financial post a few weeks back. If anyone has any questions, or would like some information sent out, please call. The annual report, year ended Apr. 97, should be available before
the end of august. AGP is also currently working on a co. website which should be up and running in the near future.
People seldom consider... Packaged ice sold in North America is sold as a FOOD PRODUCT and is regulated accordingly.
I have been asked to post this on behalf of Glen A. |
