Indigenous Northern Opportunity Fund (“INOF”) Limited Partnership
NVD has created an investment vehicle as a separate Limited Partnership to consolidate further First Nation ownership and bring NVDLP to 50%+ First Nations owned. The Indigenous Northern Investment Fund (“INOF”) is a Limited Partnership designed to expand First Nations relationship in Northern communities and bring NVD to majority First Nations (Indigenous) ownership.
NVD is seeking to change its general partner composition so that those invested in the Limited Partnership hold influence over the General Partner in step with the level of their investment in Limited Partnership units.
This Partnership is intended; only on successful full funding to purchase $6.7 million (2,637,795 units) which will bring First Nations ownership in NVD to 50.51%. All investments shall be held in legal trust by Miller until full funding has been achieved through 1 or 2 LPs. NVD will also consider FN held assets and buildings in whole or JV as payment.
Based on NVD’s weighted average cost of capital, the value of the offering on a Net Present Value basis is estimated at $2.54 per unit, which represents a 5% discount to the current estimated NAV per unit. This pricing will be held until December 31, 2020 but cannot be maintained beyond that date.
Based on NVD along with the INOF investment, the corporation then will pursue the objective of being a profitable $200+ million-dollar First Nations majority-owned company focused on investment in northern communities.
The Assembly of First Nations recognized NVD with its Trail Blazer award celebrating standard-setting First Nation and Business Partnership.
Designed to support a smooth transition program that ensures NVD will become majority First Nations owned.
All investment funds paid “In Trust” with Miller Titerle Law until the requisite amount has been achieved.
Why a Limited Partnership?
Both the INOF LP and NVD LP distribute cash pre-tax; thus benefiting First Nations tax fee status flow through.
What if INOF is not funded fully?
The LP can decide to not proceed and have all funds returned or proceed with the investment and continue to pursue majority FN ownership through other means.
What will the funds be used for?
General corporate purposes; however, NVD is in a strong cash and balance sheet position. Thus, NVD would look to investment opportunities within the investor community.
Will the INOF LP have a board seat in NVD?
This will be based on the individual’s velocity of investment and skill set to better the NVD board; however NVD wishes to expand the FN positions on its board currently welcomes FN board participation.
How is liquidity handled?
Over and above regular annual distribution; NVD regularly (24-36 mos.) plans Issuer Bids to repurchase units at fair value at the time based on discounted NAV.