GreenBank Capital Inc (CSE:GBC) has announced that, following the appointment of Sir Bob Neill to its board, its directors are undertaking a strategic review of the company's existing and future investment strategy.
Once the review is concluded, the company said it intends to produce a comprehensive plan of action setting out how it can capitalise on the incoming-generating - and potentially-income generating - businesses in its portfolio alongside opportunities that are either income-generating or close to the end of their development runway.
"Within our strategic review, we are objectively reflecting on the current economic cycle, in relation to our existing portfolio and investor expectations,” GreenBank CEO Terry Pullen said in a statement. “We believe the outcome will prove our management team is both motivated and nimble enough to reshape and deliver the company vision, if supported by new and existing shareholders alike."
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The company said the strategic review may lead to decisions to further consolidate its portfolio by exiting non-core investments, other than where there is a viable return within the short-to-medium term. The directors will be announcing a private placement to support their vision and progressive strategy, it added.
As part of that consolidation and rationalisation process, the company said the board of associate company Staminier Ltd has decided that it cannot meet the terms being requested for the further extension of its option over 13 acres of land at London’s Gatwick airport.
“Staminier has been seeking over the past three years to have that land reclassified within the Local Plan as being suitable for ‘strategic employment’, a process that has constantly been delayed due in part to local council consultations and the effect of the pandemic on them,” GreenBank said. “Crawley Council has recently issued an updated Consultation Statement (of over 500 pages) in relation to potential changes to the Local Plan, including those sought by Staminier.”
Having been reviewed by Staminier's independent experts, GreenBank said Staminier’s board concluded that this detailed summary of all the representations does not contain any positive indication that the reclassification sought will be forthcoming at any point soon, or at all.
“As a result of this, and taking into account the costs of extending the option and the associated professional fees associated with pursuing the reclassification, the directors of Staminier have decided not to pay to further extend the land option, but to expend time and resources in other areas where there is a more realistic prospect of achieving a return and in a shorter time frame,” GreenBank said.
The company said it intends to release a summary shareholder update in the coming week which will give investors further insight into recent developments within the company's portfolio of investments.
GreenBank Capital is a business transformation company, whose aim is to nurture growth companies to reach their full potential. The company's modern approach to consultancy services, involves GreenBank taking stakes in every company it nurtures, and then allowing founders and executives to benefit from the years of collective experience of the GreenBank management team. The team in London and Toronto work diligently across borders to ensure that portfolio businesses reach their core objectives.
Contact the author at stephen.gunnion@proactiveinvestors.com