FILE – In this May well 8, 2019, file picture, previous Federal Trade Fee commissioner Rohit Chopra … [+] testifies right before Congress. Chopra now sales opportunities the Client Economic Protection Bureau (CFPB). (AP Image/Susan Walsh, File)
Related Push
As the Biden administration’s enlargement of a key student personal loan forgiveness application kicks into significant equipment, federal regulators are commencing to listen to complaints from borrowers about servicers deceptive them on the program’s new prerequisites. And at minimum just one administration official is warning personal loan servicers that there could be critical consequences if the misconduct continues.
Here’s the most current.
Student Financial loan Forgiveness Growth for Community Assistance Personnel
Past October, President Biden used government action to briefly take it easy key eligibility requirements for the Public Services Personal loan Forgiveness (PSLF) plan. PSLF offers federal university student loan forgiveness for debtors who devote their occupations to nonprofit or government do the job. PSLF has had restrictive guidelines which minimal reduction to only particular varieties of federal college student financial loans that were repaid less than certain sorts of compensation plans based mostly on a borrower’s earnings. These regulations ended up not often very well-communicated to borrowers, and as a final result, PSLF was plagued by abysmal approval premiums of about 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or fewer.
Underneath the new enlargement, which the administration is contacting the “Limited PSLF Waiver” system, the restrictive rules with regards to the sorts of federal loans and repayment programs that qualify are being calm for a person 12 months, until Oct 31, 2022. By now, the Section has indicated that $5 billion in new college student bank loan forgiveness has been disbursed to 70,000 borrowers less than this waiver application.
But many borrowers will have to consider motion on their pupil loans to qualify for relief. Debtors with federal Perkins financial loans and federal college student loans issued below the Loved ones Federal Schooling Personal loan (FFEL) program may possibly have to consolidate their loans by way of the federal Direct consolidation loan software. And debtors who have not accredited their community support employment by way of a particular PSLF software kind would require to do so. There’s also a restricted timeframe to act — the deadline is October 31, 2022.
Servicers Might Mislead Borrowers On The PSLF Waiver
Previous month, advocacy corporations for pupil loan borrowers issued a stark warning that student loan servicers — contracted businesses that take care of pupil financial loan operations on behalf of the U.S. Department of Instruction and other loan companies — may perhaps mislead debtors on the new PSLF growth beneath the waiver.
“A review of industry tactics… discovered that numerous of these providers are at present furnishing deceptive and out-of-date information and facts to debtors that could derail attempts to accessibility reduction less than the not long ago revamped General public Provider Personal loan Forgiveness software,” said the Pupil Borrower Safety Middle (SBPC) in a statement in December.
The issues surface to have only deepened. Yesterday, Rohit Chopra, Director of the federal Purchaser Economical Defense Bureau (CFPB) — an independent agency tasked with regulating the economical providers field — indicated that complaints are rolling in from borrowers who are becoming presented misinformation on the Minimal PSLF Waiver software, or finding blocked fully from getting relief below the system.
“The @CFPB is hearing relating to stories from student loan debtors about how their servicers are blocking their attempts to access the new PSLF Take care of,” claimed Chopra in a tweet. “Servicers who fall short to deliver enough facts, aid, or processing for PSLF will facial area effects. The @CFPB will continue on to keep track of the field for unlawful techniques to ensure that our nation’s public servants get the reduction they earned.”
The CFPB has highly effective regulatory tools at its disposal, together with the skill to provide litigation against loan servicing businesses.
Mortgage servicing firms have a prolonged heritage of mismanaging the Community Service Mortgage Forgiveness program. Even right before Biden’s current growth of the program, the CFPB issued a report final year that was crucial of PSLF mortgage servicing methods investigators “found a quantity of means that college student mortgage servicers gave incorrect information and facts to debtors, ensuing in missteps that could cost customers hundreds of dollars,” including top borrowers to “believe they could not entry PSLF if they had more mature financial loans less than the Federal Spouse and children Education and learning Mortgage Program (FFELP), even even though they could access PSLF by consolidating FFELP loans into Direct Financial loans.” Servicers also bungled the initial rollout of the Minimal PSLF Waiver in the tumble, leading to some erroneous denials.
Various financial loan servicing organizations, such as FedLoan Servicing (the contracted personal loan servicer specifically designated by the Department of Training to administer the PSLF application) have blamed Congress for developing the complex PSLF eligibility standards in the initially position, and the Instruction Department for becoming gradual to deliver enough steerage, specially less than the new waiver.
Borrowers are complaining to the CFPB about erroneous PSLF determinations by bank loan servicers, misinformation on the program’s needs, and particularly extended keep periods to speak with buyer company representatives.
“Servicer failure to supply the data, assistance, and processing that people need to accessibility the PSLF Restricted Waiver is not suitable,” claimed the CFPB in a statement on the agency’s site. “The CFPB is committed to monitoring the industry for unlawful methods and ensuring that community service personnel, lots of who are on the front lines of the pandemic, can entry the relief they deserve as a result of PSLF.”
What Can College student Financial loan Borrowers Do?
Debtors who are in search of student loan forgiveness by way of PSLF, together with less than the Minimal PSLF Waiver software, have some choices:
Initially, take the time to learn about the software demands and the regulations less than the Restricted PSLF Waiver. The Office of Schooling has set up a thorough web site.
Chinese battery big Present-day Amperex Know-how (CATL), pictured below on April 2, 2020, broke ground on its initial abroad manufacturing unit in Germany in late 2019 and strategies to increase up to 2,000 work opportunities there by 2025.
Martin Schutt | photo alliance | Getty Photographs
BEIJING — Chinese providers invested additional in buyer sectors and the electrical automobile offer chain worldwide, even as geopolitics limited all round outbound funds flows, in accordance to a report produced Wednesday by Baker McKenzie and Rhodium Team.
Buyer merchandise and products and services held the most significant share of completed mergers and acquisitions previous calendar year, at $5.2 billion, up from $1.1 billion in 2020, according to the facts. That continue to fell brief of pre-pandemic amounts of $10 billion in specials in 2019.
Nevertheless, White Residence limitations on inbound Chinese expense in tech and Beijing’s initiatives to continue to keep cash in just nationwide borders have contributed to a decrease in Chinese overseas specials. The significant-tech and true estate sectors have been especially tricky hit, according to a launch.
All round, finished abroad mergers and acquisitions by Chinese organizations dropped to $23.7 billion in 2021, down from $29.5 billion in 2020 and marking a fourth-straight calendar year of decrease, according to Rhodium Group info.
Which include other varieties of international immediate investment, Chinese promotions rose to $138 billion in 2021, up from $134 billion in 2020 and $117 billion in 2019, in line with a 71{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} boost in mergers and acquisitions globally involving 2021 and 2020, the launch reported.
Chinese companies’ direct expense in nearby subsidiaries, recognized as greenfield investment decision, in Europe and North America grew previous 12 months to $5.5 billion, from $4.7 billion in 2020 and $3.6 billion in 2019, the facts showed.
The development previous year came from greater investments in Europe.
Numerous of the new greenfield assignments the release stated for Chinese organizations were being of investments in the electric car or truck supply chain in Europe.
The full benefit of this and other deals in the vehicle provide chain could exceed $14.5 billion in the following two several years, according to the Baker McKenzie launch.
The enlargement arrives as Chinese electric powered vehicle get started-ups like Nio look to Norway, Germany and other European marketplaces. Significant American and European automakers are also rapidly shifting to electric powered automobile generation.
“Chinese EV firms are keen to develop out their possess source chains so they can leapfrog common car makers and bounce to the chopping edge,” Mark Witzke, an analyst at Rhodium Team, claimed in an emailed assertion.
“Applying a mixture of equally acquisitions and greenfield expense, Chinese firms have been likely throughout the world in buy to create out these offer chains,” Witzke stated. “It will probably be a expanding location of financial commitment as shortages and competitiveness around obtaining EV supplies continues. Although a lot of of these corporations are incentivized by state course or subsidies, it is typically non-public firms instead than [state-owned enterprises] driving this development.”
Browse more about electric cars from CNBC Professional
Portion of the build-up of Chinese expenditure in the electrical auto provide chain is concentrated in Latin America.
Chinese mining businesses have expended far more than $4 billion on lithium and cobalt mining and processing property in Latin America and Africa over the last 3 many years, according to the Baker McKenzie launch.
For the duration of the exact time, Chinese condition-owned enterprises have used extra than $13 billion on vitality utilities and cleanse power belongings in Chile, Mexico, Brazil and Spain.
Devaluation in Latin American currencies relative to the U.S. greenback has made belongings more interesting in the location, Alejandro Mesa, Latin American regional coordinator of the global professional & trade follow group at Baker McKenzie, mentioned in the launch.
“Next, there are an essential variety of governments who have expressed interest in operating with China as a small business spouse around extra conventional partnerships with the US,” Mesa mentioned. “Third, China has more appetite for extensive-term financial commitment in the area, as it is likely that economies strengthen in the mid-time period to long-term, so developing a great moment for advertising. In 2022, we count on China to spend heavily in telecommunications and infrastructure, apart from a continuation of additional classic investments in commodities.”
Concluded Chinese mergers and acquisitions in Latin America arrived at $3 billion in 2021, the fourth-premier location for deals, the release stated.
Foreign firms have also greater their investment into China, up by 14.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} calendar year-on-12 months to 1.1 trillion yuan ($171.88 billion) in 2021, in accordance to China’s Ministry of Commerce.
Traders from Singapore and Germany amplified their expenditure by 29.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 16.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, the ministry reported Tuesday, devoid of disclosing figures for other nations.
Finance firms who invested in digitisation during 2021 are presently encountering the constructive outcomes, according to a new survey by Broadridge Financial Solutions.
Broadridge surveyed 750 financial establishments, with total property or AUM of providers in the sample ranging from USD$1 billion to more than $500 billion globally. They had been requested a assortment of issues about their implementation of electronic transformation and technological uptake.
44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of corporations in Asia-Pacific indicated that the pandemic has accelerated the pace of their technological innovation implementation, and on ordinary, organizations in Asia earmark about 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of their full once-a-year IT finances for digital transformation. In two decades the the greater part of these companies anticipate to increase their expending to 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
China experienced the best surveyed reaction for acceleration, with 62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of firms reporting implementation owning gotten more rapidly.
There was also an amplified curiosity in blockchain and cloud-based finance selections as effectively. The study showed that though 78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of corporations have presently designed progress in their use of the cloud over the previous calendar year, the range of firms achieving mid or advanced levels of implementation amplified to 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2021. This statistic is anticipated to leap significantly to 91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} more than the next two decades.
The use of blockchain is stated to also considerably widen heading forward, with far more than two-thirds (69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) of companies scheduling to get to the afterwards levels of this form of implementation in two several years.
Digital ledgers were being also a intensely pointed out thought in the survey, with the total of electronic ledger implementations raising from 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Practically all firms categorised as leaders in the maturity framework have been uncovered to be at a mid-to-superior level of implementation on the other hand, only 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of inexperienced persons in the maturity framework were at mid-to-state-of-the-art stages of implementation. This suggests a additional have to have to target on encouraging rookies with effortless and successful answers to suit their small business requirements.
Although inexperienced persons are reporting decreased numbers, the study exhibits that two-thirds of corporations have by now begun location up a centralised information platform with access to facts throughout divisions, which makes it possible for them to provide prospects additional holistically and make much better strategic decisions.
Broadridge chief govt officer Tim Gokey claims that prospects are wondering about new ways to scale up and thus searching to new technologies.
“Digital leaders are succeeding with a very clear eyesight and roadmap that prioritises digitised communications, encounters, and workflows leveraging robust info and analytics,” he says.
“This year’s study confirms that major corporations are much more pushed than at any time to apply the critical pillars of a electronic-very first long run. As a outcome, digital transformation leaders are seeing accelerated progress.”
Leading providers have differentiated themselves from the competitors by securing sturdy positions in multiple charging apps in many geographies
BOULDER, Colo., Jan. 11, 2022 /PRNewswire/ — A new report from Guidehouse Insights assesses the tactic and execution of 20 leading suppliers of electric car or truck (EV) cost issue networking providers, with ChargePoint and Enel X ranked as the market place leaders.
(PRNewsfoto/Guidehouse Insights)
The fleet of plug-in EVs is on program to grow massively as governments and businesses employ new targets for greenhouse gasoline (GHG) emissions. Networking platforms are essential to hook up a lot of entities in the EV charging ecosystem by discovering out there demand points, accessing pricing data, taking care of transactions, and collaborating in grid operator demand from customers management courses. According to a Leaderboard report from Guidehouse Insights, ChargePoint and Enel X are the major EV charger networking organizations.
“Estimates display that in excess of 185 million EVs will be in use by 2030 alongside with approximately 170 million charge factors to help this fleet,” suggests Scott Shepard, principal research analyst with Guidehouse Insights. “This desire is making a large prospect for charge position networking platforms.”
A lot of of the businesses that path these leaders are in a strong position to foster solid partnerships with regional industry gatekeepers but have to have to develop their present organization to serve a wider selection of charging programs and achieve a broader international footprint.
The report, Guidehouse Insights Leaderboard: EV Charger Networking Corporations, examines the tactic and execution of 20 major companies of EV demand issue networking corporations. These suppliers are rated on eight conditions: Go-to-Market place Strategy, Associates, Item Method, Geographic Get to, Income, Merchandise Portfolio, Keeping Power, and Innovation. Using Guidehouse Insights’ proprietary Leaderboard methodology, suppliers are profiled, rated, and ranked with the objective of offering field members with an aim evaluation of these companies’ relative strengths and weaknesses in the EV charge position networking current market. An govt summary of the report is accessible for absolutely free obtain on the Guidehouse Insights website.
About Guidehouse Insights Guidehouse Insights, the focused current market intelligence arm of Guidehouse, delivers investigation, data, and benchmarking solutions for today’s fast switching and hugely controlled industries. Our insights are developed on in-depth examination of world clean up know-how marketplaces. The team’s exploration methodology brings together source-aspect sector evaluation, conclude-user most important exploration, and desire evaluation, paired with a deep assessment of technological know-how developments, to give a extensive watch of emerging resilient infrastructure methods. Further info about Guidehouse Insights can be identified at www.guidehouseinsights.com.
About Guidehouse Guidehouse is a top worldwide supplier of consulting products and services to the public sector and professional markets, with broad abilities in management, know-how, and hazard consulting. By combining our general public and non-public sector abilities, we enable clients deal with their most elaborate challenges and navigate important regulatory pressures focusing on transformational improve, enterprise resiliency, and engineering-pushed innovation. Throughout a variety of advisory, consulting, outsourcing, and electronic providers, we develop scalable, progressive methods that enable our customers outwit complexity and placement them for upcoming advancement and achievement. The company has additional than 12,000 professionals in above 50 locations globally. Guidehouse is a Veritas Cash portfolio firm, led by seasoned gurus with demonstrated and numerous knowledge in common and emerging systems, marketplaces, and agenda-location problems driving countrywide and international economies. For far more details, you should take a look at www.guidehouse.com.
* The data contained in this push launch relating to the report, Guidehouse Insights Leaderboard: EV Charger Networking Firms,is a summary and displays the present-day expectations of Guidehouse Insights dependent on market info and trend analysis. Current market predictions and expectations are inherently unsure and actual outcomes could vary materially from those people contained in this press release or the report. Be sure to refer to the complete report for a finish being familiar with of the assumptions fundamental the report’s conclusions and the methodologies employed to make the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this push release or the report.
For a lot more facts, make contact with:
Jennifer Peacock +1.404.575.3859 jpeacock@guidehouse.com
We can easily recognize why traders are attracted to unprofitable companies. For instance, biotech and mining exploration businesses normally eliminate income for a long time in advance of discovering achievement with a new treatment or mineral discovery. But even though the successes are perfectly recognized, buyers should not dismiss the very quite a few unprofitable firms that basically burn off as a result of all their money and collapse.
Given this chance, we believed we would choose a search at regardless of whether Cognition Therapeutics (NASDAQ:CGTX) shareholders ought to be nervous about its dollars melt away. In this report, we will take into consideration the company’s annual adverse no cost hard cash stream, henceforth referring to it as the ‘cash burn’. Let us commence with an assessment of the business’ hard cash, relative to its dollars burn.
Does Cognition Therapeutics Have A Extensive Cash Runway?
You can work out a firm’s funds runway by dividing the amount of hard cash it has by the rate at which it is paying out that hard cash. In September 2021, Cognition Therapeutics had US$8.3m in cash, and was credit card debt-free. Searching at the last calendar year, the company burnt via US$4.2m. For that reason, from September 2021 it experienced 2. a long time of funds runway. When that funds runway isn’t as well concerning, smart holders would be peering into the length, and thinking of what transpires if the firm operates out of funds. Depicted below, you can see how its money holdings have modified about time.
How Is Cognition Therapeutics’ Income Burn off Transforming About Time?
Cognition Therapeutics didn’t file any revenue about the last year, indicating that it truly is an early phase organization even now developing its organization. So whilst we can’t glance to sales to fully grasp development, we can search at how the money melt away is switching to fully grasp how expenditure is trending above time. Around the last year its money burn actually improved by 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, which implies that administration are escalating expense in long run expansion, but not far too swiftly. Nevertheless, the firm’s correct money runway will for that reason be shorter than suggested over, if shelling out proceeds to enhance. When the past is normally really worth finding out, it is the long run that issues most of all. For that motive, it helps make a large amount of perception to just take a look at our analyst forecasts for the business.
How Challenging Would It Be For Cognition Therapeutics To Elevate Much more Cash For Progress?
Supplied its funds burn up trajectory, Cognition Therapeutics shareholders could want to think about how conveniently it could raise far more funds, inspite of its sound funds runway. Businesses can increase cash by means of possibly financial debt or fairness. Quite a few organizations end up issuing new shares to fund future expansion. By looking at a firm’s hard cash burn off relative to its marketplace capitalisation, we acquire insight on how substantially shareholders would be diluted if the enterprise required to elevate more than enough dollars to address a different year’s money burn.
Because it has a marketplace capitalisation of US$127m, Cognition Therapeutics’ US$4.2m in funds melt away equates to about 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its market price. Provided that is a somewhat small percentage, it would possibly be truly straightforward for the firm to fund one more year’s progress by issuing some new shares to traders, or even by getting out a personal loan.
How Dangerous Is Cognition Therapeutics’ Funds Burn Predicament?
It may perhaps already be evident to you that we’re somewhat snug with the way Cognition Therapeutics is burning as a result of its funds. For example, we assume its dollars burn up relative to its industry cap indicates that the company is on a superior path. Even though its raising money burn up was not great, the other things mentioned in this write-up far more than make up for weak point on that measure. Based mostly on the aspects pointed out in this short article, we feel its income melt away circumstance warrants some consideration from shareholders, but we really don’t feel they should be fearful. On a further note, we performed an in-depth investigation of the enterprise, and discovered 6 warning signs for Cognition Therapeutics (4 can not be dismissed!) that you really should be knowledgeable of in advance of investing right here.
Have comments on this posting? Anxious about the information?Get in contact with us directly. Alternatively, e mail editorial-group (at) simplywallst.com.
This article by Just Wall St is basic in mother nature. We deliver commentary centered on historic knowledge and analyst forecasts only using an impartial methodology and our posts are not supposed to be monetary guidance. It does not constitute a suggestion to invest in or sell any stock, and does not take account of your objectives, or your monetary scenario. We aim to provide you extended-phrase centered assessment pushed by basic details. Note that our analysis may perhaps not variable in the latest price-sensitive company bulletins or qualitative substance. Merely Wall St has no position in any shares described.
Readers are referred to the section “Forward-Looking Statements” at the end of this release. All figures are expressed in Canadian dollars.
Power continues to simplify corporate structure
Power Corporation sells its 13.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} interest in ChinaAMC to IGM Financial
Transaction to be partially funded through sale by IGM of common shares of Great-West Lifeco to Power Corporation
Further opportunity to support Power share buyback program
MONTRÉAL, Jan. 5, 2022 /CNW Telbec/ – Power Corporation of Canada (Power Corporation or Power) (TSX: POW) today announced that it has entered into an agreement under which the Power Corporation group of companies’ current combined 27.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} equity ownership stake in China Asset Management Co., Ltd. (ChinaAMC) will be consolidated at IGM Financial Inc. (IGM) (TSX: IGM). Under the agreement, Power will sell its 13.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} ownership stake to Mackenzie Financial Corporation, a wholly owned subsidiary of IGM, for aggregate consideration of $1.15 billion in cash. Power shareholders will continue to participate in ChinaAMC through Power’s 64.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} economic interest in IGM.
To partially fund the transaction, IGM has agreed to sell 15,200,662 Great-West Lifeco Inc. (Great-West Lifeco) (TSX: GWO) common shares to a subsidiary of Power Financial Corporation (Power Financial or PFC), for aggregate consideration of $575 million, representing a price of $37.83 per share which is equivalent to the 5-day volume-weighted average price of the Great-West Lifeco common shares as at the close of business on January 5, 2022 (the Great-West Lifeco Share Transfer).
“We continue to execute on our strategy to simplify and streamline Power and to deliver value for our shareholders,” said R. Jeffrey Orr, President and Chief Executive Officer of Power Corporation. “We look forward to continued participation in ChinaAMC through our ownership of IGM. We also believe this is an attractive opportunity to both increase our ownership in Great-West Lifeco and support our share buyback initiatives.”
Power Corporation expects to return a portion of the net cash proceeds from the transaction to its shareholders, after factoring in the purchase of Great-West Lifeco common shares, through share repurchases over time pursuant to a normal course issuer bid of Power. The transaction is expected to be accretive to Power’s net asset value.
Timing and Regulatory Approvals
The sale of Power’s interest in ChinaAMC will be subject to, among other things, approval by the China Securities Regulatory Commission and by certain other Chinese regulatory authorities.
The acquisition by Power of the Great-West Lifeco common shares is conditional on the closing of the sale of the ChinaAMC shares.
The transactions are expected to close in the first half of 2022.
Advisors
BMO Capital Markets and Morgan Stanley are acting as financial advisors to Power. Blake, Cassels & Graydon LLP, and Baker McKenzie are acting as Power’s legal advisors.
Early Warning Disclosure
PFC currently beneficially owns, including through its controlling interest in IGM, an aggregate of 657,587,165 Great-West Lifeco common shares, representing approximately 70.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the issued and outstanding Great-West Lifeco common shares (69.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on an economic basis). Excluding Great-West Lifeco common shares beneficially owned by IGM, PFC currently owns 620,250,032 Great-West Lifeco common shares, representing approximately 66.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the issued and outstanding Great-West Lifeco common shares.
On closing of the Great-West Lifeco Share Transfer, PFC will indirectly acquire 15,200,662 additional Great-West Lifeco common shares (representing approximately 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the issued and outstanding Great-West Lifeco common shares) such that PFC will beneficially own an aggregate of 635,450,694 Great-West Lifeco common shares, excluding those beneficially owned by IGM, representing 68.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the issued and outstanding Great-West Lifeco common shares. The Great-West Lifeco Share Transfer will not impact the aggregate beneficial ownership of Great-West Lifeco common shares by PFC, which shall remain at 70.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the issued and outstanding Great-West Lifeco common shares (including indirect beneficial ownership through its controlling interest in IGM). PFC’s economic interest will increase to 69.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. PFC and its subsidiaries will continue to own, in the aggregate, voting securities representing approximately 65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the votes attached to all voting securities of Great-West Lifeco.
PFC holds the Great-West Lifeco common shares for investment purposes and, in accordance with applicable securities laws, may increase or decrease its investment in Great-West Lifeco depending on market conditions and then relevant factors. PFC relies on Part 5 of National Instrument 62-103 in respect of aggregation relief relating to any securities that may be held by Great-West Lifeco and its subsidiaries, IGM and its subsidiaries, and any investment fund managed by entities within the Power Corporation group of companies.
About Power Corporation
Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. To learn more, visit www.PowerCorporation.com.
Power Financial, a wholly owned subsidiary of Power Corporation of Canada, is an international management and holding company with interests in financial services and asset management businesses in Canada, the United States and Europe. It also has significant holdings in a portfolio of global companies based in Europe. PFC is continued under the Canada Business Corporations Act and its head office is located at 751 Victoria Square, Montréal, Quebec H2Y 2J3. To learn more, visit www.PowerFinancial.com.
About China Asset Management Co., Ltd
Founded in 1998 as one of the first fund management companies in China, China Asset Management Co., Ltd. (ChinaAMC) has maintained a market leading position in China’s asset management industry with total AUM of approximately RMB¥1.607 trillion ($309 billion) at June 30, 2021. The company currently serves over 75,000 institutional clients and 184 million retail investors. ChinaAMC boasts one of the industry’s strongest investment teams with over 250 dedicated investment professionals. CITIC Securities is the largest shareholder of ChinaAMC. To learn more, visit fund.chinaamc.com for more information.
About IGM Financial Inc.
IGM Financial Inc. is one of Canada’s leading diversified wealth and asset management companies with approximately $270 billion in total assets under management and advisement at November 30, 2021. The company provides a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel. To learn more, visit www.igmfinancial.com.
About Great-West Lifeco Inc.
Great-West Lifeco Inc. is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. It operates in Canada, the United States and Europe under the brands Canada Life, Empower Retirement, Putnam Investments, and Irish Life. To learn more, visit www.greatwestlifeco.com.
Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect Power’s and PFC’s current expectations, or with respect to disclosure regarding Power’s and PFC’s public subsidiaries, reflects such subsidiaries’ disclosed current expectations as disclosed in their respective MD&A. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Power’s and PFC’s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management’s current expectations and plans relating to the future and the reader is cautioned that such statements may not be appropriate for other purposes. These statements include, without limitation, statements regarding the anticipated benefits of the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer, the timing of the completion of the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer, the timing for the receipt of the required regulatory and other approvals, the interest of PFC in Great-West Lifeco following the Great-West Lifeco Share Transfer, repurchases pursuant to a normal course issuer bid of Power, and the effect of the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer on Power’s and PFC’s future operations, financial conditions and share price performance. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond Power’s and PFC’s and their respective subsidiaries’ control, affect the operations, performance and results of Power and PFC and their respective subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises (such as COVID-19), Power’s and PFC’s and their respective subsidiaries’ ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer not occurring as expected, including failure of any condition to the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer, or the failure to achieve the anticipated benefits of the disposition of Power’s equity ownership stake in ChinaAMC and the Great-West Lifeco Share Transfer and Power’s or PFC’s and their respective subsidiaries’ success in anticipating and managing the foregoing factors.
The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, that the required approvals for the disposition of Power’s equity ownership stake in ChinaAMC will be received, as well as other considerations that are believed to be appropriate in the circumstances, including the availability of cash to complete purchases under normal course issuer bid, and that the list of factors in the preceding paragraph, collectively, are not expected to have a material impact on Power or PFC and their respective subsidiaries. While each of Power and PFC consider these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
Other than as specifically required by applicable Canadian law, each of Power and PFC undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of Power’s and PFC’s business and material factors or assumptions on which information contained in forward-looking statements is based is provided in their disclosure materials, including each of Power Corporation’s most recent Management’s Discussion and Analysis and Annual Information Form, filed with the securities regulatory authorities in Canada available at www.sedar.com.
Non-IFRS Financial Measures and Presentation
This press release presents and discusses a financial measure which is not in accordance with International Financial Reporting Standards (IFRS). Net Asset Value presents the fair value of the net assets of Power, expressed on a per share basis. Net Asset Value presents the fair value of the net assets of Power and is used to assist in assessing value, on a per share basis. This non-IFRS financial measure does not have a standard meaning and may not be comparable to similar measures used by other entities. Reconciliations of the Net Asset Value and the non-IFRS basis of presentation with the presentation reported in accordance with IFRS are included in Power’s most recent Management’s Discussion and Analysis.
