FAX Capital Corp. announced that it expects to report its results for the third quarter ended September 30, 2020 on Friday, November 6, 2020 and provided an update on its portfolio of investments.
Public Investments Update
The Company intends to invest 60-80% of its capital in publicly listed companies. The share prices of our previously disclosed portfolio investments performed well during the third quarter of 2020*:
The Company continues to make progress on its capital deployment. During Q3, we began to accumulate a new public company investment, and subsequent to quarter end the Investment Committee also approved a 6th public company investment.
Given the nature of the V-shaped market recovery and the run-up in valuations, the Company’s capital allocation slowed in Q3 compared to previous quarters, but continues on a healthy pace. We remain committed to taking a thorough and patient approach to investing and will not waiver from our disciplined diligence process in reviewing and structuring potential transactions to ensure only the highest quality investments are made.
Private Investments Update
The Company intends to invest 20-40% of capital in private investments, and remains sharply focused on its robust pipeline of opportunities. We caution, however, that private transactions do take time due to the requirement for detailed and in-depth due diligence, as well as the incremental challenges posed by COVID-19. Despite this, we remain confident in executing a private transaction under our original stated timeline.
The Company will provide further commentary on its portfolio in its Q3 2020 disclosure.
About FAX Capital Corp.
The Company is an investment holding company with a business objective to maximize its intrinsic value on a per share basis over the long-term by seeking to achieve superior investment performance commensurate with reasonable risk. The Company intends to invest in equity, debt and/or hybrid securities of high-quality businesses. The Company initially intends to invest in approximately 10 to 15 high-quality small cap public and private businesses located primarily in Canada and, to a lesser extent, the United States.
For additional information please contact:
Investor and Media Relations
Tim Foran, Investor Relations
Telephone: (416) 860-6108