A new year: a new phase in the development of the NEW IBI!
We coined the phrase The New IBI over a year ago to differentiate our efforts and successes from the past of the company. Now it is appropriate to be known as The Biggest Little Company in Canada to recognize the size and strength of our number of shareholders and the depth of our capital base.
We have now received conditional approval for listing on tier 3 of the Canadian Venture Exchange (“CDNX”). This next step was substantially completed and approved on December 29, but final signature could not be obtained on the approval letter until January 2 at 6:00 pm and the wording of the formal press release was not finalized until late in the day on January 3. In the end I was reminding CDNX of their underlying principle of “timely disclosure”.
Firstly, we were very pleased to have earned the right to listing through the back door at CDNX, which saved much time and cost. Secondly, we believe that the conditions can be readily attained, and that we will be called for trading in short order. The satisfaction of these conditions will represent enhanced credibility of IBI. Thirdly, we have basically met the standards of tier 2 of CDNX, and accordingly an early objective will be to apply to move up to that level. Fourthly, note that we were actually approved for listing by CDNX, not CDN as we originally contemplated.
We are a “real” public company - we have carried on our business in a professional and compliant manner for the past 16 months and we have met that standard of excellence of the Exchange, and we must now be seen by the world as such!
A recent posting by “Bart” on Hooverman so appropriately expressed our current station:
“Just as significant as a CDNX listing will be IBI’s listing on the Ugandan exchange. In the age of the global economy, participation for undeveloped countries like Uganda in the benefits of the world economy can best be realized through such things as a local stock exchange. Given that only three stocks will initially be listed on the Ugandan exchange, I would suspect that there would be significant demand for shares in those companies, simply because it is the one and only means by which the locals can realistically participate in the development of their own economy. An interesting and unexpected development which should benefit both us and the people of Uganda , I look forward to hearing from African shareholders on this board in the future.”
As we move forward to the next plateau, it is important to recognize and appreciate the many people who have played such an important part in our success to date, all as Team IBI:
Leon Gouzoules Directors and shareholder Loyal and committed supporters of
and John Penic representatives “finding a way”
Paul Mack and Independent directors New visions and governance
Lloyd Dove
Adam Cegielski Investor relations Vigour to support communications
Hans Hansen, Gizaw The Canmin Team Dedication to the GREAT project
Wilson, Christopher
Ulrich Kretschmar Independent geologist The “One Billion” man
Jim Hanley Financial consultant Assisted with a big part of PP
PP Investors Shareholders Your support and confidence gave us
the means to move forward
Doug Hawkins Canaccord Capital Helped to “find a way”
Marc Gagnon Merrill Lynch Helped to “find a way”
Michael Fernley Consultant Assisted with financing
???? “Hooverman” The glue to keep us tied together
Paul Fitchett Webmaster The core to communications
Chris Shillinglaw Web Server The core to communications
Paul Harricks and Smith Lyons Creative legal solutions
Kathleen Ritchie
Geoff Kritzinger Cyna & Co Has all the historical numbers
Luisa Roberto Equity Transfer Services The fastest share transfer in T.O.
Adrienne Shillinglaw Executive assistant Gone to motherhood
Manny Solnik Solnik and Solnik Special legal projects
And then there are the 2,700 shareholders, so many of whom have become genuine friends over the past year. Truly an international company, with shareholders from so many corners of the world. What a family!
Overall, what a strength as we move forward to further success. Many of our successes to date are borne out in the statement made by Leon at the AGM - “We refuse to lose!”
I recently had occasion to reflect on a statement attributed to my football coach of some 40 years ago, while I was an offensive lineman: “If you are going to have cleat marks on your body, make sure they are on your back, not your stomach. If on your stomach, you were pushed over!” How true, even in business….
Focus has been a guiding principle to date: it must continue, but now on the task of building Shareholder Value.
The current investment environment in North America is very conducive to the building of shareholder value and inherent financial strength:
Investment funds which have flown from technology issues are looking for a new home, and resource stocks with underlying hard assets are an attractive alternative (particularly those with a $1 billion asset, providing production for over 100 years).
The CDNX exchange has established a credible performance for junior issuers (our acceptance for listing has validated our credibility as well).
The tax-loss sellers in IBI bailed out long ago (we now have a large base of committed shareholders who are keen to follow the turn-around of the company, and the prospect of a dynamic future).
The recent reductions in the taxation of capital gains in Canada means that the inherent tax on stock profits will be reduced by one-third (everyone likes to save taxes).
The unexpected fed rate reduction in the U.S. will be a stimulation to investment and market performance (we are all encouraged to see government recognition of the importance of a stable economy).
Furthermore, the credibility of our 100%-owned subsidiary, Canmin Resources Limited, in Uganda (which owns 100% of a world-class mineral project) was further enhanced with the many meetings with senior government officials during our recent visit. Just this week Hans had an informal meeting over a beer with the Minister of Finance (the arrangements for this meeting were in the formative stages when I was there in November), and Hans received tremendous encouragement for us to continue at a fast pace with our business plan. The Minister recognized that the country would benefit with the World Bank as we benefit by our operations. This will lead to great new business opportunities in this niche environment. Uganda is a country with an exciting future!
Value will be built by the shareholders for the shareholders. Management can only provide the tools to facilitate the process.
Exercise of Warrants:
As of late December, there were 13,598,516 warrants outstanding from the rights offering in the spring of 1999. These warrants may be exercised this month only at $0.06 each until the expiry date of January 31, 2001.
If all warrants are exercised, there would be additional paid in capital to the company of $815,000.
Approximately $150,000 of these funds would complete the $300,000 required to finalize the capital costs to finalize the Namekara vermiculite mine, and put this world-class project into commercial production. The first $150,000 is already in the bank as the last proceeds from the private placement. We had tremendous shareholder support in the private placement to provide the funds to restore IBI to good health and to bring the mine project to this stage.
The balance of funds from the warrant exercises would provide long-term working capital with which to examine other business opportunities and enhance the investment portfolio of IBI - all of which will further build shareholder value.
Although we have all been constrained by the demise of the CDN OTC reporting system, and the abject failure of the new CUB system to provide an informative alternative, we are in regular communication with many Canadian brokers, and we are advised that trading in the past month has generally been in the range of $0.06 to $0.08. Many who have wanted to increase their positions before listing and the expected escalation in prices have been unable to buy - nobody is selling, at any price!
If you own warrants and you wish to exercise:
You (or your broker if the warrants were held in your trading account) must sign the Exercise Form attached to your Warrant Certificate and send it along with a cheque for the required price ( # of warrants x $0.06 ) to the transfer agent:
Luisa Roberto
Equity Transfer Services Inc.
Suite 420
120 Adelaide Street West,
Toronto, Ontario
M5H 4C3
Telephone (416) 361-0152 if you have any questions.
NOTE: If you originally exercised the rights and had warrants, and they don’t currently appear in your brokerage account, you must immediately contact the brokerage firm and have them restore the warrants to your account. If they cannot locate the original Warrant Certificate, they must requisition a replacement from Equity Transfer immediately, or you risk losing your opportunity to exercise these warrants at a favourable price. Also you should forward the brokerage firm a copy of our Press Release #2000-121 dated December 27, 2000 which will validate that the warrants have been extended to January 31, 2001.
If you own warrants and you don’t wish to exercise:
Because there are some new shareholders or others who want to exercise more than they currently have available, your warrants may be assigned back to the company for reallocation. This will be of tremendous help to the company to raise more capital to be put to use building shareholder value.
In this case, sign the Exercise Form in blank and return it to the company, along with the Warrant Certificate.
If you don’t own warrants, but wish to exercise:
Advise the company by e.mail, fax, or telephone of the number of warrants you would like to exercise, and send to us a cheque payable to the company for the purchase price. We will attempt to match your order with warrants assigned back to us. Your cheque will only be cashed if we can arrange an allocation for you.
Purchase of Shares in the Market
I have often talked about quality of the IBI shareholder base, which is both number of shareholders and commitment of shareholders. Indeed, this was one of the strengths of IBI which attracted me.
This advantage can now prevail as we start to trade on a recognized stock exchange. If each of the shareholders interests one new shareholder in making a small investment into IBI shares in the market, imagine the power of 2,700 new shareholders. Better still, imagine the impact on shareholder value.
We can provide the tools to help you in this endeavour:
Urge them to visit the thenewibi.com
We can send them our new Investor Relations Kit, with up-to-date financial, technical and disclosure documents and sample presentation box of raw and exfoliated vermiculite (just fax or e.mail us name and address and we will send it out immediately, or if you prefer, we could send it to you)
We (Adam or I) would be happy to speak to them by telephone to answer any questions
If you have a group of friends, or a small investment club, we would be pleased to try to arrange to meet with them for an informal presentation
The new Investor Relations Kit includes the following data, in a professional presentation folder:
1999 Annual Report and Information Circular
Corporate Profile
Recent Press Releases
Articles on Namekara Vermiculite - The New Vision
-- Industrial Minerals
The Bukusu Project Outline
Technical Report - Executive Summary
Article on Vermiculite - Industrial Minerals
What else can we say ---- GO TEAM IBI!!
Gary A. Fitchett CA
President and CEO |
