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FESCO partners with Lynk to integrate a new payment option for customers

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FESCO is partnering with Lynk in a deal that will allow customers to make mobile payments through Lynk’s platform. This partnership is a win-win for both sides, as FESCO is looking to give customers a digital experience that is more convenient and safer in certain aspects with cashless transactions.

It is also a great look for Lynk, as they look to expand and allow more businesses to be integrated within its digital payment ecosystem which is growing quite rapidly since the rollout of the Lynk service.

Denise Williams Chief Growth Officer at Lynk is pleased with this partnership and what both sides can bring to the table.

“Drivers are going to experience the difference in safety, convenience, and ease of transactions when they pay with Lynk at FESCO’s service station,”.

“With no more waiting on a card machine to free up, no more receipts piling up in the car, reduced risk of theft and personal safety by travelling with less cash on their person, and a new, easy way to keep track of what they’re spending at the pump – this will be a game changer for both merchants and customers.”, she said.

Jeremy Barnes Managing Director for FESCO is also on equal footing with the overall partnership and is pleased with the timing of the partnership as it comes with the announcement of new fuel products from the company.

“We are always seeking to improve our overall value proposition to our customers. The partnership comes at a time when we are proudly launching FUTRON 93 Octane, ‘The Gold Standard’ of automotive fuel. Drivers of luxury and high-performance vehicles will now have island-wide access to a premium grade of fuel at the pump,”

Overall, this strategy ties in perfectly with Lynk’s new program that they are rolling out which is called LynkBiz, this program allows Lynk to give business owners access to Lynk’s ecosystem and leverage the technologies that are available.

The platform will allow real-time and immediate digital payments, efficient digital records for businesses, and shorter processing and wait times for consumers. It aims to make the experience as seamless as possible on both sides.

Meta denies rumors that Mark Zuckerberg is on the verge of resignation

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Facebook CEO Mark Zuckerberg appears before the House Financial Services Committee on Wednesday. He faces questions about the company's influence.

Senior Meta officials quickly denied the rumor that has been circulating online of the possible resignation of Meta’s long-standing CEO Mark Zuckerberg. These rumors seem plausible that they started from a specific source that was shared around Twitter.

It came from a newsagent called The Leak which branded itself as making insider knowledge public and open source.

Within the Tweet post, they stated that, “Information obtained by The Leak suggests that Zuckerberg has decided to step down himself. The decision, per our insider source, “will not affect metaverse”—Mark’s multi-billion dollar project, which has dragged Meta along with it as the company saw a significant profit decline earlier this year.”

Despite the rumors, given the state of the company and what it has been through, it makes total sense to persons who have been following Meta why Mr. Zuckerberg would step down.

If these rumors are indeed true, Meta itself would need to be rebuilt from the ground up with a CEO who has fresh ideas and can take the company to the other level and compete with rivals such as TikTok and others who are not known yet.

In a world that is ever changing, especially within the tech space, they have to make a huge change before the end of this decade or the Meta we now know it as will become looked at with the same veneer as IBM, an old company who is just getting on by but still has a lot of potential.

Dolla successfully raises over $1 billion in bonds

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Micro-finance company Dolla Financial Services has raised over $1 billion in a new round of funding in order to further accelerate the company’s overall business.

This latest bond offer comes approximately 6 months after the company went on the JSE. It’s a signal that the company is not resting on its laurels and instead expanding operations and taking advantage of key strategic opportunities.

Dolla’s CEO, Kadeen Mairs, stated at the recent listing ceremony the reasons for such a move, “Our balance sheet was healthy, so we said to Victoria Mutual Wealth Management, ‘We want to raise J$1 billion’. As our financial advisors, they undoubtedly reminded us of the current financial climate and how tough that would be.

We opened the bond on September 1, 2022, exercised the right to upsize on October 5, and closed on October 18, after we successfully raised J$1.17 billion. Now Dolla has the money to expand to The Bahamas, and to the Eastern Caribbean. We have been capitalized to fund Ultra Financier Limited, our asset-based lender, and are still able to reserve capital for acquisition opportunities.”, He said.

This is a great look for Dolla who is looking to capitalize on the different opportunities available for JSE companies to raise capital. At the pace that they are going, analysts are predicting that the opportunity for Dolla to be listed on the main market is just around the corner.

ChatGPT: OpenAI most ambitious project yet

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Beginnings

OpenAI has made the headlines again and this time for a valid reason. They have created a language model that is probably going to have a big societal impact going forward.

Language models are machine learning systems that were trained on a vast amount of textual data to then gain understanding from that data so that the machine system can be able to reason just like how any functioning human would.

These language models have come a far way and the use cases have evolved over time. In the early stages, scientists and engineers were developing rudimentary models that could do basic probabilistic predictions that would predict what word would come after based on the other previous words.

Other use cases would allow the system to do basic sentiment analysis by analyzing all the words in a corpus (collection of text) and do frequency analysis on the most common words which will then give an idea of what a particular corpus is mainly about.

These models were mainly based on statistical formulas you could find probably in your high school textbooks in statistical theory. They also were very specific and got the job done where ever needed. Those types of statistical models weren’t enough though to solve real-world challenging problems.

Thus, scientists and engineers worked tirelessly to improve on those foundations. Over the years these models have become more complex far beyond the comprehension of the average scientist due to the ingenuity that was involved and the basic fact that machine learning or deep learning models are hard to explain. Some scientists still see them as a black box.

Current State

Today these language models permeate through almost every sphere of our society, if you have a smartphone and you are texting, that autosuggestion engine is a language model whose lineage came from those primitive statistical algorithms.

If you are talking to Siri, Alexa, Cortana, etc. All of these systems are built on language models. But the problem is some of these systems’ how-to secrets are wrapped around non-disclosures, intellectual property, and all the corporate jargon we can think of.

This poses a problem, one of the problems is that if large multi-trillion-dollar corporations can be able to innovate quickly they will have a monopoly on certain sectors of the artificial intelligence market.

This monopolistic dream for some of these companies is already here but you do have companies who are allowing these technologies to be open source and one of them is OpenAI.

OpenAI was created to basically help balance the scale within the artificial intelligence market which is a very challenging task. Over the years their flagship product has been GPT-3 (Generative Pretrained Transformers), these generative models can be to generate textual data and can replace the writing ability of the average human being in certain cases.

It’s probably even there already for most, there have been cases where the text that these models can generate is pretty superior to individuals who have even graduated with an English degree, albeit these cases are localized within a smaller context.

Regardless it’s progress nonetheless and ChatGPT proves that we are in a new era of language models. ChatGPT feels as if you are talking to a sidekick who can ask certain questions and have that system answer them for you in a very eloquent way. It’s quite an extraordinary and thrilling experience.

Above you can notice that the user which has the red underlines and the ChatGPT system is basically answering the user and solving problems. If you notice that the user is asking the ChatGPT system to solve a software programming problem by reading the code.

In this other problem, you can see that the user is asking the system to write a basic introduction to introduce herself to the neighbor.

From looking at these examples, you can see that these systems can write stories and probably even dissertations for us if we know how to communicate with them. It will be very interesting to see how the developers evolve these systems over time.

These machines over time can be able to replace lots of digital skills that the common can do and that is very exciting but frightening at the same time.

Despite the amazing results of this new model, there are still drawbacks and it is discussed on the OpenAI website. Some of them can be summarized below:

  1. Ideally, the model would ask clarifying questions when the user provided an ambiguous query. Instead, our current models usually guess what the user intended.
  2. ChatGPT is sensitive to tweaks to the input phrasing or attempting the same prompt multiple times. For example, given one phrasing of a question, the model can claim to not know the answer, but given a slight rephrase, can answer correctly.
  3. ChatGPT sometimes writes plausible-sounding but incorrect or nonsensical answers. Fixing this issue is challenging, as: (1) during RL training, there’s currently no source of truth; (2) training the model to be more cautious causes it to decline questions that it can answer correctly; and (3) supervised training misleads the model because the ideal answer depends on what the model knows, rather than what the human demonstrator knows.

Despite the challenges, these systems are moving in the right direction. It’s impossible to predict where they might take it but for now, it’s an interesting peek into a future that is already here.

MFS Capital makes its first acquisition of the year

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MFS Capital Partners Limited (MFS), the private equity firm that was formed prior to the acquisition of Stocks and Securities Limited Ventures has made a major move to acquire 100% of Micro Financing Solutions.

The acquisition of Micro Financing Solutions has been in the talks for some time within MFS Capital, it was only a matter of time. Additionally, this acquisition fits within the business’s main aim of investing in opportunities that are poised for growth and have strong fundamentals.

MFS Capital CEO Dino Hinds stated at the company’s annual general meeting that this acquisition is the first one in line of many that are within the pipeline, as the company looks to invest in businesses within money services, investment banking, and real estate that has growth potential.

“We have outlined companies that we are interested in which are companies generating strong revenues and have the potential for significant growth and, therefore, the company met that criteria which is why we are going after it, as we are not interested in start-ups or companies in their earlier stage of development but ones that are more established. Therefore, any other company that we go after must fit in terms of our strategic plans,” he said.

Speaking to the plans for other acquisitions, Hinds said that deep negotiations were now underway with hopes for more entities fitting the criteria to be added from its active pipeline of potential companies.

“We are really excited about the future and the way forward and we are determined that we will become the premier private equity firm in the Caribbean.

“We have about 15 companies that we are looking at, in terms of acquisitions, and which we are in negotiations, and as we go through the process we are hopeful that we will close on a number of them. We are down the road with some more than others, so we are, therefore, expecting that by the first quarter of 2023 it will be really exciting and busy for us as we look to close on some of our targets,” Hinds said.

iCreate plans to raise money using a strategic debt to equity scheme

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iCreate is currently in the process of working on a bold move to convert its current debt to equity with an overall transaction value worth $600 million. This ambitious move at the moment clearly pushes the boundaries from a regulatory standpoint.

One of the main reasons is that iCreate is currently being listed on the junior market and companies within the junior market have an upper limit of $ 500 million in valuation.

If this passes, iCreate would be breaching current regulatory standards, despite that the Ministry of Finance is currently overlooking the proposal to ensure that the company is walking that fine line. On the macro level, this is a move that will allow iCreate to raise more capital from the market and invest in strategic initiatives.

The terms for the debt conversion are $1 per share, the number of new shares issued then will be worth over $600 million, and the overall shares under the company would be approximately $750 million when we also take into consideration the current $130 million in shares the company has listed.

Analysts are estimating that one of the main reasons for such a move is the finalization of the acquisition of Visual Vibe which has been in the works for most of the year. This new stream of cash under the belt will allow it to not just acquire Visual Vibe but expand the business and get recurring revenues from it.

Evergo Jamaica invested $200 million in E-DRIVE

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Evergo Jamaica is investing in Mexico-based E-DRIVE which is a company that is building the infrastructure for the electric future. This infrastructure is mainly in the form of providing electric gas stations throughout the Caribbean and Latin America.

Additionally, Evergo is a part of the InterEnergy Group based in Latin America, it is a growing company that has approximately 500 charging stations which include those that are being installed currently.

In a press release Evergo states, “Over the next five years, with an investment of US$200 million, the Evergo/E-Drive partnership will offer a robust network comprising more than 15,000 new public and residential charging stations across Mexico.”

This deal will draw Evergo and E-DRIVE closer together as both companies will now be working together to create new joint services such as ‘Evergo Fleet’ which basically provides charging for corporate electric vehicles. Another service in the pipeline is a home charging service which is called, ‘My Evergo’.

The company will also launch the Evergo App, which will allow “all charging stations to connect with the network used in an increasingly growing number of countries”.

BlockFi files for chapter 11 as another crypto firm bites the dust

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BlockFi filed for financial protection on Monday in New Jersey, following a swirl of rumors that it got hit by the FTX contagion.

BlockFi’s chapter 11 had been expected for quite a while; however, in a definite 41-page recording, BlockFi advisor Mark Renzi strolls leasers, financial backers, and the court through his viewpoint in charge of BlockFi.

According to Renzi, exposure to the two successive hedge fund failures that happened this year and the FTX fiasco was a decisive factor in the collapse of BlockFI.

Renzi is quick to highlight that according to his perspective, BlockFi doesn’t “face the horde issues obviously confronting FTX.”

Renzi pointed to a $30 million settlement with the SEC and the company’s corporate governance and risk management protocols, writing that BlockFi is “well-positioned to move forward despite the fact that 2022 has been a uniquely terrible year for the cryptocurrency industry.

“The “issues” that Renzi alludes to may incorporate FTX’s widely discussed absence of monetary, risk, hostile to tax evasion, or review frameworks.

A new round fizzled for BlockFi. Customary outsider financial backers were frightened away by “horrible” economic situations, Renzi said in a document, compelling them to go to FTX just to follow through with client withdrawals.

Regency Petroleum had a successful IPO

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Regency Petroleum Company Limited (RPL) had a successful IPO which saw the firm looking to raise $287.16 million where $170.70 comes from the public market and RPL key partners. It was a success as it was oversubscribed and ended a day after it was opened to the public.

It marked the 6th company to be listed on the JSE this year along with the likes of Dolla Financial Services Limited which had a very successful IPO raising $4.762 billion in just a week.

GK Capital Management Limited was the lead broker and orchestrator for RPL’s IPO which wasn’t a surprise given their activity within the IPO space over the last couple of years. VM Wealth Management Limited (VMWM) and JMMB Securities Limited were mainly selling agents within this process.

RPL’s CEO Andrew Williams stated he is very optimistic about the future of the company and will continually invest in key strategic initiatives.

“We anticipate significant growth in revenues to come from our next four quarters. We also plan to continue to seek properties in strategic locations to expand our automotive retail outlets and service stations and expand our LPG cylinder base by planting our stake in corporate areas and across the island in the near future,” he said.

With one month to go before the end of the year, it’s hard to tell if this is the last IPO. Most of the IPOs this year showed the resiliency of the JSE market and the different companies that are making an impact.

There have been rumors that A.S Bryden & Sons Limited might list this year, information regarding that has been minimal and ambiguous, let’s just see what happens over the next couple of weeks.

Sagicor XFund improves over last year losses

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Sagicor Xfund’s numbers have improved quite significantly since last year. In 2021 cumulatively over the first three quarters, they saw a net loss attributable to stockholders at J$65.43 million. In 2022 during the same period, they reported net profits of J$211.60 million.

Analysts are claiming that this year’s turnaround in fortune is largely attributable to the increase in businesses of the various hotels Sagicor XFund has in their portfolio.

Despite the performance, hotel expenses rose by 59 percent to a figure of J$1.40 billion. Positively, hotel margins improved and rose from 21 percent to 27 percent, this helped to alleviate some of the pressure the various expenses might have had on the outlook.

Occupancy levels increased alongside hotel bookings, as result they saw a 71 percent increase in hotel revenues over 2021 with a figure of J$2.16 billion.

XFund’s share price ended the September quarter at J$8.20 and a market capitalization of J$18.39 billion. For the overall Group, they noticed a 32 percent year-over-year growth in total revenues ending the period with J$5.17 billion.