Ken Greene, Esq., Leasing News Emeritus answers
Which One are You on Friday?

“I've heard it said that the difference between the optimist (half-full) and the pessimist (half-empty) depends upon whether you're drinking or pouring.”

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Canadian Stock Exchange Halts Trading
Chesswood Group Limited Stock

Ontario Securities Commission issued the FFCTO after market close on August 15, 2024.

There appears to have been no stock exchange legal action except to delist the stock from trading. There are no stock holders’ gross legal filings or government law enforcement that appear to have occurred. To be fair about what has been happening, the following is long but basically highlights the board of directors’ reaction from Chesswood Group press releases.

"The Company is continuing to work with its auditors to complete the work necessary in order to be in the position to finalize and file the required financial statements, MD&A and certifications to have the FFCTO lifted, and will provide updates as further information becomes available and as required."

The reality is Chesswood withdrew the 1st Quarter Report, as reported it needed changes, then the 2nd Quarter, and missed three deadliness to delay the reasons and corrections to be made.

All the companies of Chesswood in the United States and Canada have undergone several changes, including no Originations and two have been sold.

Chesswood issued  this most press release:

"It has sold all of its interests in Vault Credit Corporation and Vault Home Credit Corporation (collectively, "Vault" representing the entirety of Chesswood's Canadian equipment leasing and consumer financing business segment, to an affiliate of HB Leaseco Holdings Inc. (the "Vault Purchaser") pursuant to the terms of a Share Purchase Agreement dated today (the "Purchase Agreement"), and provides an update on its previously announced evaluation of the strategic direction of Chesswood being supervised by a special committee (the "Committee") of the board of directors of Chesswood (the "Board of Directors").

"Summary of Transaction:

"Pursuant to the terms of the Purchase Agreement, the Vault Purchaser has acquired the Company's 51% majority interest in Vault for an amount equal to C$60,000,000, the proceeds of which have been used to reduce the Company's outstanding indebtedness (the "Transaction").

"The completion of the Transaction marks a first step towards the Company's execution of its previously announced Credit Facility action plan to remedy its existing non-compliance with the borrowing base covenants under the Credit Facility, as required under the extended waiver provided by the lending syndicate under the Credit Facility (the "Waiver"). As previously announced, the Waiver required the Company to, among other things, complete the sale of its interests in Vault during the waiver period expiring on September 16, 2024..."

“Is the Vault Purchaser is a "related party" of the Company by virtue of holding, together with its joint actors, 3,334,792 common shares of the Company, representing approximately 17.7% of the issued and outstanding shares of the Company as of the date of this press release, the Transaction is considered a "related party transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). As such, the Transaction would ordinarily be subject to valuation and minority approval requirements under MI 61-101. However, the Company relied on the "financial hardship" exemptions in sections 5.5(g) and 5.7(e) of MI 61-101 from the valuation and minority approval requirements, respectively.

“The Committee and the Board of Directors, acting in good faith, determined that (a) the Company was in serious financial difficulty, as absent the closing of the Transaction, the Company would be unable to satisfy the requirements set forth in the Waiver and ultimately remedy its breach under the Credit Facility, (b) the Transaction was designed to, and has, improved the financial condition of the Company, as all cash proceeds were used to repay a portion of the indebtedness under the Credit Facility in furtherance of the Credit Facility action plan, and (c) the terms of the Transaction were reasonable in the circumstances of the Company as it represents the only practical option available to the Company under the current circumstances after having given due consideration to the outcome of the Company's previously announced ongoing review of strategic alternatives, that included Vault, as well as other subsidiaries of the Company, having been widely marketed by the Company in a process conducted prior to the Company becoming aware of its breach under the Credit Facility, and which has neither been successful in providing other viable alternatives for the Company and its shareholders nor resulted in any other offers for Vault to date.

"A material change report will be filed as soon as practicable under the Company's SEDAR+ profile in connection with the Transaction. The Company did not file a material change report at least 21 days prior to closing of the Transaction as required under section 5.2(2) of MI 61-101 as the Company desired to complete the Transaction at the earliest possible opportunity in light of the Company's financial condition, including its need to meet the requirements under the Waiver prior to the expiry of the waiver period. The Company determined that the shorter period was reasonable and necessary in the circumstances."

Full Press Release, with links to previous press releases:
https://www.newswire.ca/news-releases/chesswood-announces-sale-of-vault-and-provides-strategic-review-update-800465709.html

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CLFP Foundation Adds 14 New CLFPs
With Photos

The Certified Lease & Finance Professional (CLFP) Foundation is pleased to announce that 14 individuals who recently sat through the online proctored CLFP exam, have passed. They are:

Justin Buhrow, CLFP – Credit Manager,
360 Equipment Finance

Roshanthi Cantin, CLFP – Senior Credit Analyst,
Falcon Equipment Finance

Aaron Fadness, CLFP – Credit Analyst III,
Stearns Bank

Darren Habiger, CLFP – Fraud Manager,
Stearns Bank

Justin Hersey, CLFP Associate – Credit Analyst,
First American Equipment Finance

Alexander Hutchings, CLFP – Assistant
Vice President – Capital Markets,
First American Equipment Finance

Amanda Nytes, CLFP – Broker Account Manager
Lead, Stearns Bank

Haley Richey, CLFP – Technical Project Manager,
360 equipment Finance

JT Scott, CLFP – Servicing Specialist,
Stearns Bank

Alexander Seebaugh, CLFP – Collections
Manager, 360 Equipment Finance

Sahil Sharma, CLFP – Director, Business Development,
US Equipment Finance, Accord Financial

Brady Thompson, CLFP – Accounts Receivable
Supervisor, Stearns Bank

Emma Tickner, CLFP – Wholesale Account
Manager/Transaction Coordinator,
Falcon Equipment Finance

Lana Wensman, CLFP – Client Relations
Representative, Stearns Bank

Roshanthi Cantin of Falcon Equipment Finance attended the Stearns Bank ALFP and shares, “I chose to pursue the CLFP designation as a growth and development opportunity. My passion for learning made this a perfect avenue to deepen my knowledge about the industry and the overall lifecycle of a lease, as well as to test and refine my skills. Achieving this designation has been a significant accomplishment for me.”

“I chose to pursue the CLFP designation to expand my knowledge, understanding, and foundation of the equipment finance industry,” says Amanda Nytes. “The part I found the most stimulating was the history, this solidified the why and how for the things I do day in and day out in my current role. It was a rewarding experience, and I encourage anyone who is wanting to learn more and expand their career to take this course and become a CLFP.”

For more information on the academy:
https://clfpfoundation.org/academy-for-lease-and-finance-professionals

The CLFP designation identifies an individual as a knowledgeable professional to employers, clients, customers, and peers in the commercial equipment finance industry. There are Certified Lease & Finance Professionals and Associates located throughout the United States (including Puerto Rico), Canada, India, Pakistan, Africa, and Australia. For more information, visit
http://www.CLFPFoundation.org

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Leasing and Finance Industry Help Wanted
Excellent Compensation/Marketing Support
Plus other openings for successful, growing funders

"Double Down"
Sales Makes it Happen by Scott Wheeler, CLFP

A high performing originator recently made the following statement that bears repeating:

Now is the time to work harder and smarter than ever before because every extra hour or effort produces great results. These are the times that top producers dream of. The Market is flush with strong transactions.

I asked him to pinpoint five things that make him successful and his answer was:

• He has deep relationships with a select number of vendors that provide him with "flow business" every month.

• He asks for and receives referrals from most end-users.

• He starts his day before anyone else in the office and is usually the last to leave.

• He knows his competition well and is never reluctant to go head-to-head with anyone.

• He communicates often and concisely with his clients - he is a straight shooter.

He added a sixth and most important factor - he has FUN every day and lets everyone he comes in contact with know how much he loves his work and helping his clients.

Scott A. Wheeler, CLFP
Wheeler Business Consulting
1314 Marquis Ct.
Fallston, Maryland 21047
Phone: 410 877 0428
Fax: 410 877 8161
Email: scott@wheelerbusinessconsulting.com
Web: www.wheelerbusinessconsulting.com

Wheeler Business Consulting is working with individual originators and sales teams throughout the industry to ensure that they are well positioned in the market, capturing their fair share of business, and outperforming the competition. To schedule a one-on-one meeting contact Scott Wheeler at: scott@wheelerbusinessconsulting.com

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Top Ten Most Read by Readers
August 12 to August 16

(1) Ameris Bancorp Names Phil Silva
    to Lead Balboa Capital
https://leasingnews.org/archives/Aug2024/08_14.htm#ameris

(2) New Hires/Promotions in the Leasing Business
     and Related Industries
https://leasingnews.org/archives/Aug2024/08_12.htm#hires

(3) Chesswood Group Limited Appears to Be
  in Trouble; Financial Statement Deadline Passes Third Time
    By Kit Menkin
https://leasingnews.org/archives/Aug2024/08_12.htm#cw

(5) Six Month 2024 Leasing-Finance Associations'
     Membership Count and by Category
https://leasingnews.org/archives/Aug2024/08_12.htm#six

(6) Lion Electric and Pride Truck Remain
     in Trouble with Operations in Canada and U.S.
https://leasingnews.org/archives/Aug2024/08_12.htm#lion

(7) Commercial Finance/Leasing Finance
    Conferences & Forums
https://leasingnews.org/archives/Aug2024/08_12.htm#conf

(8) New Hires/Promotions in the Leasing Business
    and Related Industries
https://leasingnews.org/archives/Aug2024/08_16.htm#hires

(9) Top Ten Most Read Articles
  By Leasing News Readers
    July 29 to August 2
https://leasingnews.org/archives/Aug2024/08_12.htm#729

(10) From the Archives: Byrne is Back
    at the Helm of Balboa Capital
https://leasingnews.org/archives/Aug2024/08_14.htm#from

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Commercial Finance/Leasing Finance
Conferences & Forums

Sept. 4-5: AACFB Commercial Financing Expo, New Orleans, Louisiana
https://expo.aacfb.org/home
Complete List of 2024 AACFB Funding Exhibitors
https://leasingnews.org/archives/Aug2024/08_12.htm#aacfbitors
NOTE: Hotel Exclusive Rate Cut-off August 19, 2024.
https://leasingnews.org/archives/Jul2024/07_22.htm#aacfb
Vicki Shimkus, CLFP, Balboa Capital, Broker Relationship Manager, will be covering the conference for Leasing News readers.

Sept. 10-12: CFLA Conference, St. John's, NL, Canada
https://cfla-acfl.ca/cfla-annual-national-conference-2024.html
Early Bird Rate Available:
https://cfla-acfl.ca/programs-services/event-calendar.html/event-info/details/id/48
Hugh Swandel, President, Meridian OneCap Commercial Credit, will be covering the conference for Leasing News

Sept. 23 - 24: B2B Finance Expo, Wynn, Las Vegas, NV
https://www.b2bfinexpo.com/
It also features Poker Game for 50, Sunday, Sept. 22, 2024
https://www.b2bfinexpo.com/page/3932469/poker-party
Accepting Reservations:
https://book.passkey.com/gt/220111918?gtid=3de05f54910c4c17c858cd28e9e1b9cf

Oct. 16-18: NVLA Conference, Clearwater Beach, Florida
https://www.nvla.org/page/2024conference
Early Bird Special expired 7/19/2024
https://leasingnews.org/archives/Jul2024/07_12.htm#nvla
Sloan Schickler, Esq., Schickler & Schickler, will be covering the conference for Leasing News. She is also presenting there.

Oct. 27-29: 63rd ELFA Annual Convention, Austin, TX
Convention detailshttps://www.elfaonline.org/education-networking/2024/annual-conventionEarly Bird Expires Aug. 19, 2024 Registration https://leasingnews.org/archives/Aug2024/08_16.htm#elfa
Bruce Kropschot, Senior Managing Director, The Alta Group, will be covering the ELFA Convention, as he has done for  Leasing News for many years.

Nov. 6, 2024, Brokers Expo, New York City
https://brokerexponewyorkcity.com/
Super-Early-Bird-Pricing-Announced (to expire 9/1/24)
https://reg.eventmobi.com/BENY24/register
Elevate Your Brand - Become a Sponsor
https://leasingnews.org/archives/Jul2024/07_26.htm#expo

Nov. 11-14: NEFA Fall Conference, Indianapolis, Indiana
https://www.nefassociation.org/events/upcoming
Don Cosenza, CLFP, Senior Vice President of North Mill Equipment Finance, will be covering the conference for Leasing News

To be listed or update: kitmenkin@leasingnews.org

Clear the Shelters
Dogs and Cats from Overcrowded Shelters

 

https://www.cleartheshelters.com/

 

News Briefs

Roglieri Alleged to Have Transferred Assets to
    Third Parties, To His Loan Broker Association/Conference
https://debanked.com/2024/08/kris-roglieri-alleged-to-have-transferred-his-assets-to-third-parties/
https://clbassociation.com/

Possible work stoppage at Canada’s two largest
    railroads could disrupt US supply chain next week
https://www.mercurynews.com/2024/08/17/possible-work-stoppage-at-canadas-two-largest-railroads-could-disrupt-us-supply-chain-next-week/

U.S. Awards $1.6 Billion to Texas Instruments
    to Build Semiconductor Plants
https://www.nytimes.com/2024/08/16/us/politics/texas-instruments-semiconductor-grant.html

Walmart Earnings and July Retail Sales Show
    Consumers Aren’t Quitting
https://www.wsj.com/business/retail/walmart-wmt-q2-earnings-report-2025-0aecea83?mod=business_feat1_retail_pos1

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Small luxury splurges can be indicator of nation’s
    economic health, say North Bay businesses, experts
https://www.northbaybusinessjournal.com/article/industrynews/lipstick-index-economy-luxury-retail/

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Sports Briefs---

Bay Bridge Series finale: Oakland A’s, SF Giants
    fans lament end of Bay-based rivalry
https://www.eastbaytimes.com/2024/08/18/bay-bridge-series-finale-oakland-as-sf-giants-fans-lament-end-of-bay-based-rivalry/

The Santa Clara City Council is a mess.
The likelihood of cleaning it up is bleak
https://www.sfchronicle.com/opinion/openforum/article/santa-clara-city-council-ineffective-19659099.php

Coast-to-coast conferences and expanded playoff
mark a season of change in college football
https://www.pressdemocrat.com/article/sports/coast-to-coast-conferences-and-expanded-playoff-mark-a-season-of-change-in/

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California News Briefs---

California unemployment rate steady for 3rd
   straight month, over $1 million unemployed
https://www.courthousenews.com/california-unemployment-rate-holds-steady-for-3rd-straight-month/

San Francisco Bay Area Loses Thousand of Jobs in July
    as tech layoffs
https://www.mercurynews.com/2024/08/15/san-jose-sjsu-home-student-housing-property-real-estate-economy-build/t economy

Boise Fire hits 10,000 acres with no
containment in Humboldt County
https://www.sfgate.com/california-wildfires/article/boise-fire-no-containment-humboldt-county-19659456.php

SJSU views San Jose housing tower as
    boost for students and downtown
https://www.mercurynews.com/2024/08/15/san-jose-sjsu-home-student-housing-property-real-estate-economy-build/

[headlines]
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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8

‘Everyone thinks the sky is falling’: Cult
   Cabernet maker snaps up another Napa Valley winery
https://www.sfchronicle.com/food/wine/article/hundred-acre-kelly-fleming-wines-19654083.php

Benom wines expands with 60-acre Paso Robles
estate purchase
https://pasoroblesdailynews.com/benom-wines-expands-with-60-acre-paso-robles-estate-purchase/196019/

No Doom and Gloom in Anderson Valley; Harvest
  Starting Soon with Positive Outlook
Yet Grapes Available in Rare Twist
https://www.winebusiness.com/news/article/291314