Canadian Financing Bulletin (CFB) Reports CDN Financings for the Week of January 03-06 and Announces the Upcoming …

VANCOUVER, BRITISH COLUMBIA–(Marketwire -01/11/12)- The Canadian Financing Bulletin has been a leader in tracking financing activities of Canadian capital markets in the mining, energy and technology sectors for over seven years. Our unparalleled service offers unique insight into small and micro cap stocks, as well as comprehensive comparative reports detailing the worldwide reach of Canadian companies in these sectors. With the listings of active proposed placements, investors and companies that might not otherwise receive analyst coverage are potentially brought together. As well, we offer coverage of activity in the bond market for users to be made aware of lower-risk opportunities.
Vancouver Resource Investment Conference at the Vancouver Convention Centre is Cambridge House’s largest annual conference. This year’s conference will surpass previous years’ numbers with approximately 500 booths on the tradeshow floor representing more than 600 junior resource mining companies. Two speaking halls along with six workshops will run concurrently over the two-day conference providing investors with up to date information from industry experts. New this year, will be the launch of Cambridge House’s Investor College. The purpose of the college will be to deliver educational information to the junior or senior investor. A broadcast centre will also be located at the middle of the trade show floor where live onstage media will record and broadcast at various locations around the conference.
Also new this year; there will be a debate between Frank Holmes and Gordon Chang:
DEBATE: This January we have confirmed internationally acclaimed bestselling author, Gordon Chang and award winning philanthropist and global leader in fund managing, Frank E. Holmes. Frank Holmes is the Chief Executive and Chief Investment Officer at US Global Investors. He is also the recipient of both Mining Fund Manager of the Year Award from The Mining Journal and International Citizen of the Year Award from the World Affairs Council of America. Gordon Chang literally wrote the book on why one should be wary of China’s growth. Published in 2006, The Coming Collapse of China is a piece that is still gaining momentum and has attracted the attention from the likes of the LA Times to Asia Times and all in between. One might be familiar with Chang from appearances on Fox News or his regular contributions to Business Insider. On January 23, these two intellectual behemoths will take off the gloves and debate whether China is on a course to Grow, Slow or Blow. Don’t miss this and many more exciting features that will be on display at the 2012 Vancouver Resource Investment Conference.
In this week’s report, the CFB published term sheets for 10 new proposed placements from the mining, oil/gas (termed metals and energy in the report) and technology sectors. Of those, nine were for mining stocks and one for technology stocks, with the total value of new proposals reaching almost $7m. None of these placements were designated a ‘flow through’ issuance and there were no new debenture offering. The largest new public proposal was by Bannerman Resources Ltd (BAN.V), which launched a share offering consisting of 17.78m shares at a price of $0.225 for gross proceeds of $4.182m in a non-brokered placement.
The CFB published term sheets for 39 placements that were closed during the week. Of these, 27 were for mining stocks, four for oil/gas, and eight for technology stocks, with the total value of these closings being almost $248m. Eight of these placements were designated ‘flow through’ issuances and one debenture placement closed. The largest public closing was by Yoho Resources Inc. (YO.TO) which issued 4.55m shares at a price of $3.30 for gross proceeds of $15m in an offering led by FirstEnergy Capital.
The CFB also tracked three amendments to placements published at the end of the weekly report. To date, there have been 380 weekly reports created by CFB; backdated reports can be obtained by subscribers.
Click HERE to download the summary.
About the CFB and Blender Media:
The Canadian Financing Bulletin is produced and distributed by Blender Media, an integrated creative agency specializing in both online and print design, development and maintenance. Blender Media’s work includes extensive strategies for shareholder communication, intuitive design interfaces and the opportunity to be memorable in a sea of investment possibilities.
Blender Media has the support of over 450 satisfied clients and utilizes investor focused online exposure solutions that help clients stay in touch with their shareholders, including the CFB.
Since CFB began offering its weekly report over seven years ago, it has developed other more wide reaching reports that have now been published. Our quarterly and year-in-review reports provide charts, graphs and other comparative tables that exhibit sophisticated capital market intelligence. The data in these reports has been read by thousands of executives, investment advisors, fund managers, and investors from around the world. CFB has also recently begun offering specialized monthly reports, focusing on individual segments within the sectors CFB covers (i.e., gold, uranium, oil, etc.) To date, there have been 169 reports created by CFB; several of these reports are currently posted on the CFB website.
As one can see, CFB offers an important perspective into Canadian capital markets. These markets play a crucial role in the financing of companies active worldwide in various business sectors, specifically for natural resources exploration and development. Canada maintains a leadership role due to a number of factors:

--  A history of significant natural resources;
--  Efficient and transparent capital markets;
--  Strong backing from the investment community; and
--  Regional clusters of the world's most innovative, organized and
aggressive exploration and development personnel, in cities like
Vancouver, Calgary and Toronto.

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Pulp Funding: An Alternative Way To Finance Startups

Guest post written by Andy Sack
Andy Sack is co-founder of Lighter Capital, a Seattle-based provider of revenue-based financing.

Andy Sack: Who needs venture capital?

In 1994, the Quentin Tarantino film Pulp Fiction made a Bible passage from the Book of Ezekiel (25:17) famous.

“The path of the righteous man is beset on all sides by the inequities of the selfish, and the tyranny of evil men.  Blessed is he who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother’s keeper, and the finder of lost children.”

Most fans of the film will tell you that Samuel L. Jackson (as his character Jules Winnfield) would deliver the passage as “a coldblooded thing to say to a (expletive) before popping a cap in his (donkey).”  However, for many of today’s entrepreneurs, the passage may be a better interpretation of how coldblooded the funding process can be for a small business.
In today’s economy, it can be a real pain, if not impossible, for a small business owner or entrepreneur to find capital to fund small business growth. But for the few that do secure financing, their path has typically been beset on all sides by the inequities of banking institutions or the tyranny of venture capitalists.
There’s no denying that big banks have become increasingly difficult when it comes to issuing small loans – which regulators define as loans of $1 million or less, regardless of the size of the business. Recent FDIC data shows that the number of small bank loans to businesses has fallen to the lowest point in more than a decade. And the money that banks do lend is often issued at fixed rates that burden start-ups with unrealistic payments.
Meanwhile, the path to funding through institutional venture capital is no less painful. Venture capital, while illiquid, brings with it a high degree of “hands-on management,” outside pressure from investors and ultimately, and a greater loss of control by the entrepreneur. As soon as venture capitalists become involved, the founder’s role shifts from focused leader in full control, to full-time investor liaison where management decisions are collaborated upon.
So, how are today’s entrepreneurs expected to navigate this valley of financing darkness?  Well, there’s an often overlooked financing model called revenue-based finance that is gaining a “shepherd-like” following from many of today’s small businesses.
The revenue-based finance model, sometimes called royalty-based finance (RBF), was introduced over 50 years ago and is again gaining popularity today.  The RBF model provides a unique set of benefits to both the small business and the investor.
The RBF model is called a “non-dilutive” form of finance because the small business owner does not trade ownership in the company in exchange for cash. Instead, the loan is structured so monthly payments are a percentage of increased revenues. Additionally, the investor’s payout is capped to a specific amount that is paid out of the revenue the company earns within a specified time period.
Business owners benefit by receiving investment dollars to build their business (without losing ownership) and investors benefit by receiving increasing payments as revenues increase. The investor has purchased the rights to a portion of the revenue earned by the small business, but they have not purchased any other ownership of the business. The terms of the RBF model are typically negotiated to allow some time for revenue to accrue before payouts need to be made, and typically there is a time period limitation and a payout limitation that is included in the negotiated terms.
OneWed, a provider of wedding planning tools and websites, used a hybrid of revenue-based finance and equity when taking seed-stage investment from Founder’s Co-op in 2009.

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