Thursday 19 September, 2019

Barita shareholders approve second rights issue

Barita board members from left to right: Carl Domville, director; Mark Myers chairman;
Rita Humphries-Lewin, director;    
Ian McNaughton, Managing Director;
Paul Simpson, deputy chairman and
Phillip Lee, director 
at the company's extraordinary general meeting.

Barita board members from left to right: Carl Domville, director; Mark Myers chairman; Rita Humphries-Lewin, director; Ian McNaughton, Managing Director; Paul Simpson, deputy chairman and Phillip Lee, director at the company's extraordinary general meeting.

Shareholders of Barita Investments Limited (BIL) have approved a second rights issue, enabling the company to pursue several initiatives, including a buildout of investment banking operations and expansion of its branch network. 

At an extraordinary general meeting held last Friday at the Courtyard Marriot, BIL approved the issuance of 106,223,596 ordinary shares to raise capital. The company previously did a rights issue in January. 

Funds raised will also enable Barita to strengthen its digital footprint and leverage technology to satisfy clients’ needs. 

Shareholders also passed a resolution, granting the company directors the authority to dispose of all new ordinary shares not taken up by shareholders by way of a private placement. 

While acknowledging that Barita did not have the authorised share capital at the time of its first rights issue, Managing Director Ian McNaughton said the current environment was conducive to raising capital. 

“Barita provides an excellent opportunity for liquidity seeking viable investment options with significant upside," he said. 

“Barita’s primary objective is maximising our shareholders’ benefits as we continue to grow Barita into one of the best financial institutions in Jamaica and the wider Caribbean region. Therefore all our decisions and strategies have been aligned to help us achieve that goal”.  

Barita primarily offers boutique stock brokering services and unit trust instruments to clients, and most recently investment banking services.

Barita was last year by acquired by Cornerstone Investments Holdings for over $3 billion.

Cornerstone Investments, which was incorporated in St Lucia, includes the same shareholders as Cornerstone United Holdings Jamaica, a special-purpose vehicle that acquired a majority stake in the merchant banking outfit MF&G Trust and Finance Limited in 2016.

Paul Simpson serves as president and CEO of Cornerstone United Holdings Jamaica Limited (CUHJL), which was incorporated in Jamaica in 2015. Restaurant of Jamaica boss, Mark Myers is CUHL’s chairman.
 

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