Stack Capital Group Inc. Reports Q1-24 Financial Results

TORONTO, May 02, 2024 (GLOBE NEWSWIRE) -- Stack Capital Group Inc., (“Stack Capital” or the “Company”) (TSX: STCK and STCK.WT) today announced its financial results for the quarter ended March 31, 2024. Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.

Company Commentary:

  • As at March 31, 2024, Book Value per Share (BVpS) of the Company was $11.03, compared with $10.91 as at December 31, 2023.
  • Stack Capital increased its exposure to Locus Robotics through a share-swap transaction issuing 273,501 Stack Capital common shares, at $11.30 per share, which closed on March 4, 2024.
  • The Company invested US$8 million into Canva, Inc., a collaborative all-in-one visual design and communication platform, which closed on March 18, 2024. The investment in Canva represents $1.18 of the Book Value per Share. Canva has become a leader in the visual communication space with more than 170 million monthly active users worldwide, and over twenty billion designs created on its platform.
  • The Company’s cash position as at March 31, 2024, was $14.1 million or $1.53 per share.
  • To date, the Company has completed nine investments contributing $9.55 per share as at March 31, 2024, into the following:
    • SpaceX (space exploration & communications)
    • Canva, Inc. (graphic design)
    • Omio, Inc. (travel & leisure)
    • Hopper, Inc. (travel & leisure)
    • Locus Robotics, Inc. (robotics)
    • Newfront Insurance, Inc. (insurance & benefits)
    • Prove Identity, Inc. (cyber-security)
    • Bolt Financial, Inc. (e-commerce)
    • Varo Money, Inc. (neo-banking)
  • During Q4-2022, the Company announced a normal course issuer bid to buy back its outstanding common shares which it believes to be undervalued. During Q1-2024, 2,600 common shares were repurchased at an average price of $8.15 per share.

“We are extremely excited over the recent addition of Canva to the portfolio, which strengthens what was already an impressive collection of private companies here at Stack. While we anticipate Canva will continue along its impressive growth trajectory in the coming months, we also believe that it has the potential to be very well-received by public markets whenever it decides to list,” said Jeff Parks, CEO of Stack Capital. “Overall, we’re encouraged by developments across each of our investee companies and believe that potential liquidity events remain realistic over the coming 12-18 months.”

Q1-2024 Highlights

  • As at March 31, 2024, the Book Value of the Company was $101.7 million, and the Book Value per Share was $11.03. A detailed summary of Book Value per Share is as follows:
Breakdown of Book Value per Share as at March 31, 2024: 
Investment – Locus Robotics, Inc. 1.45 
Investment – SpaceXi 1.34 
Investment – Omio, Inc.ii 1.21 
Investment – Hopper Inc. 1.18 
Investment – Canva, Inc. 1.18 
Investment – Newfront Insurance, Inc. 1.18 
Investment – Prove Identity Inc.iii 1.13 
Investment – Bolt Financial, Inc. 0.55 
Investment – Varo Money, Inc. 0.33 
Net other assets (0.05)
Book Value per Share$11.03 

i the Company invested in units of FNEX Ventures LLC – Series 103 which is primarily invested into Space Exploration
Technologies Corp. (“SpaceX”).
ii the Company invested in shares of GoEuro Corp. which carries on business as Omio.
iii the fair value of Prove Identity Inc. includes an unrealized deferred gain of $964,065.

  • With the recent investment in Canva, Stack Capital has satisfied the requirement described in its original Prospectus dated June 9, 2021, and forming part of the Voluntary Measures described therein, that it would invest at least 75% of the net proceeds from its IPO within three years.

About Stack Capital

Stack Capital is an investment holding company and its business objective is to invest in equity, debt and/or other securities of growth-to-late-stage private businesses. Through Stack Capital, shareholders have the opportunity to gain exposure to a diversified private investment portfolio; participate in the private market; and have liquidity due to the listing of the Common Shares and Warrants on the TSX. At the same time, the public structure also allows the Company to focus its efforts on maximizing long-term performance through a portfolio of high growth businesses, which are not widely available to most Canadian investors. SC Partners Ltd. acts as the Company's administrator and is responsible to source and advise with respect to all investments for the Company.

For more information, please visit our website at or contact:
Brian Viveiros
VP, Corporate Development, and Investor Relations

Non-IFRS Financial Measures

This press release may make reference to the following financial measures which are not recognized under International Financial Reporting Standards (“IFRS”), and which do not have a standard meaning prescribed by IFRS:

  • Book Value - the aggregate fair value of the assets of the Company on the referenced date, less the aggregate carrying value of the liabilities, excluding any deferred taxes or unrealized deferred gains or losses if applicable, of the Company; and
  • Book Value per Share (BVpS) - the Book Value on the referenced day divided by the aggregate number of Common Shares that are outstanding on such day.

The Company’s Book Value and Book Value per Share is a measure of the performance of the Company as a whole. The Company’s method of determining this financial measure may differ from other issuers’ methods and, accordingly, this amount may not be comparable to measures used by other issuers. This financial measure is not a performance measure as defined under IFRS and should not be considered either in isolation of, or as a substitute for, net earnings per share prepared in accordance with IFRS.

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this press release includes, but may not be limited to the business of Stack Capital and the risks associated therewith, including those identified in the Annual Information Filing under the heading “Risk Factors”.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although Stack Capital believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Stack Capital can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the ability to capitalize on investment opportunities. The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of Stack Capital based on information currently available to Stack Capital.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Stack Capital disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events, or results or otherwise. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.