|The team at MFC Industrial Ltd. has a successful 25-year record of identifying undervalued or troubled assets, profitable turnaround opportunities and low-risk restructuring methods for problem operations. More importantly, it has rewarded its shareholders with spinout, dividends, returns of capital and other distributions, producing a compound annual return of 20.4% over the last 10 years. The team has deep expertise in the resource, basic materials, commodities, and logistics business, with unusual expertise in creative financing and the maintenance of unusually low levels of risk. |
|The company began in 1984 with the acquisition of a small real estate company.
Fast forward to 1996, when MFC Bancorp Ltd. (our predecessor name) was created and spun off as a dividend to shareholders.
In 2005, MFC Bancorp identified an undervalued and troubled opportunity, Humboldt Wedag AG. (KHD AG), a 150-year-old German basic materials company specializing in cement plant engineering. It acquired control of KHD AG, which was traded on the Frankfurt Exchange, and implemented a new strategic plan with new access to capital and a new management team. Over the next several years the company grew in value well more than tenfold, and generated hundreds of millions of dollars in cash. MFC changed its name to KHD Humboldt Wedag International Ltd (KHD), and KHD began trading on the NYSE.
In 2006, the majority of the financial assets of the former MFC Bancorp were transferred to a subsidiary known as Mass Financial Corporation (Mass), which began to trade in Vienna, and the shares were distributed to shareholders.
In 2010, after the successful reorganization of KHD, the Board decided to spin out the KHD operations to the shareholders and to resume its trading on the Frankfurt Exchange. That spinout was accomplished in four tranches over 2010, and the company changed its name to Terra Nova Royalty Corporation, which has traded on the NYSE as TTT, with its primary assets a cash-rich bank account and a royalty stream from the Wabush iron ore mine in Newfoundland.
In mid-2010, the Board decided to re-integrate Mass Financial Corp (the former MFC Bancorp) into the company, and that merger was approved by both sets of shareholders and finalized prior to the end of 2010. The new corporation, a global supply chain management company, has interests in iron ore mining in India, metals refining in Europe, and global energy operations in oil and gas related businesses, and handles supply chain management and logistics for clients all over the world.
In August 2011, the Company announced its intention to rename itself MFC Industrial Ltd, and to change its NYSE ticker to MIL. The concurrent intention is to spin out to the shareholders several assets not directly relevant to the global commodity supply chain operations, or to sell those assets and pay out a special distribution to the shareholders.
MFC has a strong history of returning equity to shareholders. An original shareholder of MFC Bancorp in 1996 has seen his investment grow substantially through cash distributions and dividends.
Measured over a 10-year period, $1000 invested in 2000 would have grown to over $6300 by the end of 2010.
MFC Industrial Ltd. currently pays a cash dividend based on the annual dividend yield of the New York Stock Exchange Composite Index for the preceding year, plus 25 basis points. The rate for 2011 is $0.20 cash dividend payable in four quarterly installments.
|1984 Acquires small Real Estate company
1996 MFC Bancorp Ltd. created and spunoff
2005 Renamed KHD Humboldt Wedag International Ltd.
2006 Mass Financial Corp. created
2010 Name change to Terra Nova Royalty Corporation
2011 Name changed to MFC Industrial Ltd.