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Topic: New Bank of Canada Notes Paper Supplier?  (Read 6363 times)
coinsplus
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« on: June 29, 2007, 05:47:52 pm »

I found this article interesting as it talks about the negotiations with the Bank of Canada about supplying bank note paper. 

Successful IPO sets specialty papermaker up for growth

Volume disappoints CEO but not the $8 share price or $40 million raised
Brian Morton, Vancouver Sun
Published: Friday, June 29, 2007

A Vancouver-based company that makes specialty paper for such things as passports and anti-forgery banknotes is proceeding with expansion plans after going public Thursday on the Toronto Stock Exchange.

Fortress Paper Ltd. president and CEO Chad Wasilenkoff is optimistic about the company's future after the share price remained unchanged at the end of the day's initial public offering -- five million shares at a price of $8 a share for total proceeds of $40 million -- although he would have preferred a higher volume.

"I'm very comfortable with that, but I was surprised there was limited volume," Wasilenkoff said in an interview after Thursday's close, which saw approximately 286,000 shares change hands. "It would have been nice if it was 500,000 to one million shares."

But Wasilenkoff said he's pleased the share price didn't move, because he didn't want to see anything too "monumental" the first day.

"We're trying to build a strong, stable, conservative company with limited volatility. We view our shareholders as long-term investors. More volume would have been great, but we wouldn't want the shares to go higher [in price]. Typically, a very large opening is not maintained. I hope it's a slow, gradual movement in the right direction."

Wasilenkoff said that Fortress, an international producer of security and other specialty papers, needs money for capital growth in two main areas: Expanding its two mills in Switzerland and Germany and acquiring other "small niche paper mills" around the world; and producing a new electronic passport, with a radio frequency identification (RFID) chip embedded in the cover.

"We've already developed it," added Wasilenkoff. "Now we want to roll it out."

As well, he said, Fortress wants to move ahead with a new transparent "window" for currencies it has developed that holders can see through.

"It's the Holy Grail of security features. We'll start with the Swiss franc, and we're in discussions with the Bank of Canada. It's a transparent window that's easy to recognize by retailers, but virtually impossible to replicate by counterfeiters."

He said the decision to go public means the company can now move ahead with its plans.

According to a news release, the company's security papers include banknote, passport and visa papers, and its specialty papers include non-woven wallpaper-base products, and graphic and technical papers.

Fortress Paper supplies the national banks of 25 countries with specialized, anti-forgery paper for banknotes, and customers include Switzerland, Morocco and several countries using the euro.

Wasilenkoff said Fortress is in talks with the Bank of Canada, and hopes to take over production of the Canadian currency's paper in 2009, when a contract with its European producer is up.

Wasilenkoff said: "I'm confident that with this new injection of growth capital, we'll be able to implement our strategy. My outlook is to grow over three to five years. I don't worry about day to day."

bmorton@png.canwest.com

© The Vancouver Sun 2007

{http://media.canada.com/2de3e3f6-b472-4835-9142-3ead50913788/money.jpg?size=l}
Chadwick Wasilenkoff, CEO Fortress Group, holds winning hand with new secure banknotes they produce.

  Smile from your heart.  ;D
m_samourai
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« Reply #1 on: July 01, 2007, 12:18:00 am »

sounds like the transparent window could be cool.  I wonder what the odds of them getting a contract with BOC.  Being new to this hobby, I'm only really familiar with about 3 monitary paper companies.  Is there a slew of competition out there?
Punkys Dad
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« Reply #2 on: July 01, 2007, 09:53:13 pm »

Hmmm, my take is that this mon is betting on cash being used in our future 'Cashless society.' Maybe I could apply for a Quality control job if he should open a plant out here in Vancouver rather than capitalizing Switzerland or Germany. That would help land a contract with the BoC.

'Made in Canada mon!' Dei Gratia

PD

Teeny guy on my shoulder sez, It's only money mon
 

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