DXI Capital, armed with cash, seeks to rebuild after disengaging from oil

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  • Old oil company looking for a new business
  • C $ 50 million capital / NOL tax loss to play with
  • Executives bring decades of technology and life science experience

What DXI Capital does:

DXI Capital Corp () (OCTQB: DXIEF), formerly, has a usable capital / NOL tax loss worth approximately C $ 50 million. “

The Vancouver-based company sold its energy assets in the summer of 2020, including its 99% Woodrush production plant in British Columbia and its Kokopelli gas project in Colorado.

DXI told shareholders the move stemmed from “day-to-day business beyond the control of the company,” namely the coronavirus pandemic and its impact on oil prices. In early April, when DXI first put its assets on sale, the US Energy Information Administration lowered its 2020 forecast for West Texas Intermediate and prices by 23% to $ 29.34 per barrel and by 24% at $ 33.04, respectively.

With oil in the rearview mirror, DXI Energy became DXI Capital, and CEO Robert Hodgkinson, back at the helm after stepping down in December 2018, began to chart a new course.

How’s it going :

To help the company find its way, DXI hired high tech and life science industry veteran Sean Hodgins (not to be confused with Hodgkinson) as COO and CFO. in December 2020.

The company also said it hired Tandem (TIG) to “help find a suitable business transaction.” Hodgins is co-founder of TIG, a professional consulting services company with a network of over 175 part-time CFO advisors and business consultants across North America.

At its Annual General and Special Meeting of Shareholders in August, voters approved a 1: 100 reverse stock split and the aforementioned name change. The stock consolidation allowed the company to re-list on the Toronto Stock Exchange after a voluntary delisting in July and a brief stint on the NEX, a trading forum for companies that do not meet the standards of the TSX.

The company settled its debt of approximately C $ 4.3 million by issuing more than 9 million shares at a price of C $ 0.475 in two installments in October and November. A remaining balance of 355,894 shares will be issued after confirmation that one of the company’s former executives has made the required tax payments on the outstanding payroll debt, the company said at the time.

Inflection points:

  • Find a “positive tailwind business”
  • Use your capital to start a new business
  • Benefit from the experience of its leaders in technologies and life sciences

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel


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