CSE's Phillip Shum chats with First Growth Funds Limited (CSE:FGFL) CEO Anoosh Manzoori about how his company provides advisory services to companies and invests across a diversified portfolio of different asset classes, including equity and convertible note investments in large and small cap public listed and private companies.
The company also invests in technology companies involved in the development of blockchain solutions as well as direct investments in established and liquid Cryptocurrency (for example Bitcoin and Ethereum).
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Speaker 2:
This is hashtag finance presented to you by the Canadian securities exchange the exchange for entrepreneurs with your host, Phillip Shaun.
Speaker 3:
Hi, welcome to another edition of hashtag finance. My name is Phillip Shum. I'm the listings development director here in Toronto Canada for the Canadian securities exchange. Today, I have a new Shmenn Zuri who is chairman and CEO of first grow funds limited. The ticker symbol is F G F L. That's Frank George, Frank, Larry, uh, on the CSE. Uh, welcome Anoosh
Speaker 1:
Thanks for having me.
Speaker 3:
Uh, so you're in, uh, um, Melbourne Australia at this point. Uh, it's early for you, so we really appreciate your time. Um, uh, I'd like for you to introduce the company and tell us a bit about, uh, first grow funds.
Speaker 1:
Yeah, thanks. Uh, thanks for having me. First growth funds is a advisory and investment company that invest across a broad range of asset classes. And we also invest at any stage of the investment cycle and also in any geography, a true value proposition is that it typically invest in opportunities that are not readily available to the broader investment community, which gives our shareholders unique access and exposure to our growth opportunities. We also generate fee revenue from our advisory business whilst we incubate our investments. So we're not relying solely on, on, on crystallizing our investments. We all can also generate a fee revenue during the life of those. Uh, the, the periods we hold, um, our investment, uh, uh, in a portfolio. I also want to just quickly mentioned that we had, uh, a very strong resolve for financial year 2020, which is our June 30 year end. Uh, we, we report about$2.3 million in, in net revenue. And we also booked about just under a million dollars in net profit after tax as well. So a very strong balance sheet by$9.1 million in net assets of which about$4.3 million is in cash about$4.8 million in investments at cost value, um, which is, is, is quite liquid. So we're in a very strong position to continue that growth moving forward.
Speaker 3:
So you're sitting on 4.3 million in cash right now. So what are the, um, you know, moving forward for investments, what are the types of companies that you'd like to invest into and what type of structures do you usually take?
Speaker 1:
Yeah. So look, we, we invest across a broad range of, um, opportunities and, you know, we're not so much, um, you know, sit on a particular type of sector. Um, you know, we looking for special situation opportunities. So this could be, uh, growth, capital acquisition expansion, or addition of, of distress assets. So we endeavor to negotiate a very strong position with favorable valuation in terms to maximize our upside within leverage our advisory business. We sit in parallel to our investment mandate to add value to the portfolio and falling once the investment matures, we're very hands on, on the planning and execution of exceeding our investments to ensure we receive the highest possible return on that investment. I want to also add that we have a very clear line of sight to liquidity when we invest. So our goal is to cycle the cash into new investments over time to generate more advisory revenue and investment returns over time, moving forward,
Speaker 3:
Or rather looking in the back in the past. Uh, can you give me an example of some of your clients and how you would have worked with them to, to make them successful?
Speaker 1:
Yeah, probably a really good example. Uh, just recently we, we had a, a private company called linked. It was developing a, a supply chain solution. It was a private company. Um, it was a bit of a distressed asset. We actually only paid$940 for that, for that investment. And, uh, six months after we acquired it, we sold that business to a listed company, uh, for$900,000 in shares. And then six months later this year, actually right in middle of COVID, we S we sold out of that company and bank 1.4,$2 million cash profit. So that's a really good example of a company that, and an opportunity that that's not really readily available at during the best thing community, we're very active investment managers. We got involved in that company. We structured it, we, we corporatized it, we found the target, we executed a sale, and then we waited patiently for the window to, to exit our holding. And we did a very well, uh, you know, regular returning that, that opportunity.
Speaker 3:
It sounds like you're very much like a public venture capital fund, uh, like a public listed, uh, venture capital fund, which means that you will likely have very good relationships to go find great opportunities. So, um, so from a, from a management standpoint, I suspect you have a good amount of individuals who have a lot of subject matter expertise. So can you talk to me about a bit about who's on your board and what your management local looks like? Yeah,
Speaker 1:
So all the directors, um, have successfully sat on all sides of the negotiating table having been founded as advisors and investors. Um, and between us, we have very good coverage across different industry sectors, and we've got capital markets experience. And when I experienced, we are a small team, but we have a very low cost model and we have great capability internally and also very strong personal networks, um, no need just to add value to our portfolio, but also if we need to seek additional funding and bring co-investors into these opportunities, we can also facilitate that as well.
Speaker 3:
Okay. Uh, and considering you're, you're listed, or rather you're located in Melbourne at this point. So why did you believe that you needed to list in Canada and, and w you know, have you ever worked with other CSE companies?
Speaker 1:
Yeah, so we, we decided to, to, to list in Canada because, you know, we are, uh, we are a global business. Um, today we've invested in, obviously in Australia, Europe, Asia, Canada, and also United States. We do have a very strong portfolio, um, currently sitting in North America, um, both public and private companies. And we've seen as CSC as a, as a great opportunity to access the public markets, and also use that as a launch pad into, into the us. Uh, and we also want to support more Canadian companies with new investments and, and obviously advisory mandates as well. You know, we've had great success across many, many different sectors. And as mentioned, our mandate is to invest across a wide range of industries, geographies, and stages of the investment cycle. Um, you know, we're particularly like, um, companies that are, um, the, the cashflow generating, they're public, this small cap, they've got their, you know, they're growing, but they got the blue sky ahead of them. And we'd like to get good positions in those, in those companies. We also like to get involved in, in private companies where we've got a line of sites or an M and a transaction, or we can facilitate and help them to go public. Um, you know, but if I had to pick a sector, you know, really like the, the, the FinTech sector, we think that's quite transformational. You know, we've had a lot of success there. We actually helped a company go public on the CSE, Billy this year called speak technologies. That's a company that's generating about$200 million in, in payment processing every year. It books about$8 million in revenues, very profitable. It's had about five years consecutive, double digit growth, you know, they're the sort of opportunities you would like to really get involved in. And what is the ticker on that company? Sq ID
Speaker 3:
As QID is squid payments at S Q I D payments. Okay. That's a, that's great. Thank you. Uh, so, you know, like, um, uh, thanks for your time, but moving forward, what should people be looking to expect from FGL fell for the next little while?
Speaker 1:
Well, look, we're very, very active, uh, investors. Um, you know, we are putting out a lot of news flow recently invested in a company called Rue life, which is a, uh, an e-commerce facilitator for companies in the West. I mean, Canada, us and Australia that are expanding for example, into e-commerce platforms, into China. And that's another company that's generating a lot of revenue and is moving towards cashflow positive. Um, so yeah, we, we, we are looking to bring out some additional news flow, very surely, particularly in the FinTech and also in the social media spaces sustain tuned.
Speaker 3:
Okay. Uh, so, you know, following up on that in order for people to stay tuned, how do they do that for a first grow funds limited?
Speaker 1:
Obviously you check us out on the CSC, uh, website of the profile page to get code F GFL and also in our website, first growth funds.com. If you scroll down to the bottom of the homepage, there's a newsletter subscription form. Um, please subscribe there. It's a great way to keep in touch with what we're up to.
Speaker 3:
Okay, great. Thank you. Uh, so once again, I'm here with, uh, newsmen Zuri from first grill funds limited. He's the chairman and CEO. Thank you very much. This was an excellent interview. Uh, and for similar interviews like this, feel free to please subscribe, uh, onto the, this, uh, this link, uh, on, on the YouTube link down below. This is obviously gonna go on to various different, uh, formats, uh, because it is a podcast. Um, but, uh, thank you very much once again. It's Phillip Shum here from the CSC. I'm the director of listings development here in Toronto, Canada. And thanks for listening. Thanks to new. Shh.
Speaker 1:
Thanks Phil. Thanks for having me.
Speaker 4:
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