Category: Canada

  • MIL-OSI: Corporate and Municipal CUSIP Request Volumes Decline in January

    Source: GlobeNewswire (MIL-OSI)

    NORWALK, Conn., Feb. 21, 2025 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for January 2025. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found a monthly decrease in request volume for new corporate and municipal identifiers.

    North American corporate CUSIP requests totaled 4,505 in January, which is down 36.9% on a monthly basis. On an annualized basis, North American corporate requests were down 24.2% over January 2024 totals. The monthly decrease in volume was driven by a 32.6% decline in request volume for U.S. corporate debt identifiers. Request volumes for short-term certificates of deposit (-27.1%) and longer-term certificates of deposit (-14.8%) also fell in January.

    The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – fell 14.1% versus December totals. On a year-over-year basis, overall municipal volumes were up 1.8%. Texas led state-level municipal request volume with a total of 78 new CUSIP requests in January, followed by California and New York, each of which had 59 new municipal CUSIP requests in the first month of the year.

    “Monthly CUSIP request volume may appear to be off to a slow start when compared to the strong volumes we saw in the second half of 2024, but most major asset classes are seeing gains versus year-ago totals,” said Gerard Faulkner, Director of Operations for CGS. “While it’s still early in the year, and there is no shortage of uncertainty about the future of interest rates and the broader economy, issuers are likely to enter the markets at a historically brisk pace.”

    Requests for international equity CUSIPs fell 19.5% in January and international debt CUSIP requests rose 14.0%. On an annualized basis, international equity CUSIP requests were down 13.0% and international debt CUSIP requests were up 33.3%.

    To view the full CUSIP Issuance Trends report for January, please click here.

    Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through January 2025:


    Asset Class
    2025 YTD 2024 YTD YOY Change

    Long-Term Municipal
    Notes
    37 8 362.5%

    Canada Corporate
    Debt & Equity
    562 378 48.7%

    International Debt
    520 390 33.3%

    U.S. Corporate Equity
    1,161 914 27.0%

    Syndicated Loans
    197 173 13.9%

    Municipal Bonds
    610 579 5.4%

    Private Placement
    Securities
    266 253 5.1%

    U.S. Corporate Debt
    1,605 1,540 4.2%

    International Equity
    120 138 -13.0%

    CDs > 1-year Maturity
    539 724 -25.6%

    CDs < 1-year Maturity
    542 763 -29.0%

    Short-Term Municipal
    Notes
    59 86 -31.4%


    About CUSIP Global Services

    CUSIP Global Services (CGS) is the global leader in securities identification. The financial services industry relies on CGS’ unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Its extensive focus on standardization over the past 50 plus years has helped CGS earn its reputation as the industry standard provider of reliable, timely reference data. CGS is also a founding member of the Association of National Numbering Agencies (ANNA) and co-operates ANNA’s hub of ISIN data, the ANNA Service Bureau. CGS is managed on behalf of the American Bankers Association (ABA) by FactSet Research Systems Inc., with a Board of Trustees that represents the voices of leading financial institutions. For more information, visit www.cusip.com.

    About The American Bankers Association

    The American Bankers Association is the voice of the nation’s $24.2 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.1 trillion in deposits and extend $12.6 trillion in loans.

    For More Information:

    John Roderick
    john@jroderick.com
    +1 (631) 584.2200

    The MIL Network

  • MIL-OSI: Onex Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    All amounts in U.S. dollars unless otherwise stated

    TORONTO, Feb. 21, 2025 (GLOBE NEWSWIRE) — Onex Corporation (TSX: ONEX) today announced its financial results for the fourth quarter and year ended December 31, 2024.

    “Our focus, every day, is growing long-term shareholder value,” said Bobby Le Blanc, CEO and President. “In private equity, we are investing in strategies and verticals that have the strongest potential for future risk-adjusted returns. Overall, the PE teams raised over $1.5 billion in 2024. Our Structured Credit platform had another active quarter and an outstanding year, having raised or extended more than $13 billion of fee-generating assets during 2024 while growing fee related earnings. Shareholders continue to benefit from our strong balance sheet and liquidity position, and most recently through our substantial issuer bid.”  

    Financial Results
    ($ millions except per share amounts)

    Quarter Ended Dec. 31

    Year Ended Dec. 31

      2024   2023   2024   2023  
    Net earnings (loss) $ (2 ) $ 373   $ 303   $ 529  
    Net earnings (loss) per diluted share $ (0.02 ) $ 4.81   $ 4.00   $ 6.65  
                     
    Investing segment net earnings $ 29   $ 326   $ 344   $ 815  
    Asset management segment net earnings   18     46     21     2  
    Total segment net earnings (1) $ 47   $ 372   $ 365   $ 817  
    Total segment net earnings per fully diluted share(2) $ 0.62   $ 4.80   $ 4.74   $ 10.23  
    Asset management fee-related earnings(3) $ 6   $ 3   $ 6   $ 12  
    Total fee-related earnings (loss)(4) $ (1 ) $ (2 ) $ (21 ) $ (14 )
    Distributable earnings(5) $ 231   $ 139   $ 617   $ 797  


    Highlights

    • Onex had approximately $8.3 billion of investing capital, or $113.70 (C$163.54) per fully diluted share(6) at December 31, 2024. Onex’ investing capital per fully diluted share returned 6% for the year ended December 31, 2024 or 15% in Canadian dollars. Over the last five years, investing capital per fully diluted share has had a compound annual return of 13%.
    • Onex’ private equity investments had net gains of $11 million in the fourth quarter of 2024 (Q4 2023: net gains of $250 million). Investments in Credit strategies generated net gains of $16 million in the fourth quarter of 2024 (Q4 2023: net gains of $66 million).
    • Onex raised approximately $2.8 billion in fee-generating capital across its Private Equity and Credit platforms in the fourth quarter and $8.8 billion in fiscal 2024.
    • The Onex Partners Opportunities Fund has raised aggregate commitments of approximately $1.2 billion, including affiliated vehicles and Onex’ commitment of $400 million. The Fund completed its second acquisition in December.
    • ONCAP V has reached aggregate commitments of approximately $1.1 billion, including Onex’ commitment of $250 million, with a final close expected at the end of Q1 2025. In December, ONCAP II and ONCAP III completed the sale of PURE Canadian Gaming.  
    • Collectively, our private equity teams returned approximately $3.0 billion of capital to Limited Partners in 2024, including approximately $1.0 billion to Onex.
    • Onex Credit raised or extended a total of $13.0 billion of fee-generating assets across its CLO platform in 2024. Fee-generating assets under management (FGAUM) within the Structured Credit platform increased 34% in 2024. Activity in Q4 includes closing of five new CLOs for approximately $2.6 billion in new fee-generating assets. The Credit platform contributed $27 million of fee-related earnings (FRE) in 2024, with year-end run-rate FRE of $40 million.
    • Onex repurchased 2,277,722 Subordinate Voting Shares (SVS) in the fourth quarter for a total cost of $185 million (C$266 million) or an average cost per share of $81.18 (C$116.82). Onex repurchased 5,693,741 SVS in 2024, capturing approximately $215 million of value for remaining shareholders.
    • Onex had $35.2 billion of FGAUM at December 31, 2024, a 17%(7) increase over the last 12 months. Run-rate management fees(8) increased to $195 million at December 31, 2024.
    • Unrealized carried interest from funds managed by Onex was $286 million at December 31, 2024.
    • Onex’ cash and near-cash(9) balance was $1.6 billion or 19% of Onex’ investing capital as of December 31, 2024 (December 31, 2023 – $1.5 billion or 17%).

    Dividend Declaration

    The Board of Directors has declared a first quarter dividend of C$0.10 per Subordinate Voting Share payable on April 30, 2025, to shareholders of record on April 10, 2025.

    Webcast

    Onex management will host a webcast to review Onex’ fourth quarter 2024 results on Friday, February 21, 2025 at 11:00 a.m. ET. The webcast will be available in listen-only mode from the Presentations and Events section of Onex’ website, https://www.onex.com/events-and-presentations. A 90-day on-line replay will be available shortly following the completion of the event.

    Additional Information

    Enclosed are supplementary financial schedules related to Onex’ consolidated net earnings, investing capital, fee-related earnings (loss), distributable earnings, and cash and near-cash changes for the three and 12 months ended December 31, 2024. The financial statements prepared in accordance with IFRS Accounting Standards, including Management’s Discussion and Analysis of the results, are posted on Onex’ website, www.onex.com, and are also available on SEDAR+ at www.sedarplus.ca. A supplemental information package with additional information is available on Onex’ website, www.onex.com.

    About Onex

    Onex invests and manages capital on behalf of its shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, banks, insurance companies, family offices and high-net-worth individuals. In total, Onex has approximately $51.1 billion in assets under management, of which $8.3 billion is Onex’ own investing capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.

    Onex is listed on the Toronto Stock Exchange under the symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedarplus.ca.

    Forward-Looking Statements

    This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.

    Non-GAAP Financial Measures

    This press release contains non-GAAP financial measures which have been calculated using methodologies that are not in accordance with IFRS Accounting Standards. The presentation of financial measures in this manner does not have a standardized meaning prescribed under IFRS Accounting Standards and is therefore unlikely to be comparable to similar financial measures presented by other companies. Onex management believes these financial measures provide useful information to investors. Reconciliations of the non-GAAP financial measures to information contained in the consolidated financial statements have been presented where practical.

    For Further Information:

    Jill Homenuk
    Managing Director – Shareholder
    Relations and Communications
    Tel: +1 416.362.7711
    Zev Korman
    Vice President, Shareholder
    Relations and Communications
    Tel: +1 416.362.7711


    Supplementary Financial Schedules

        Quarter ended December 31
        2024(i) 2023(i)
     
    ($ millions except per share amounts)   Investing     Asset Management     Total   Total
     
    Segment income $ 29   $ 70   $ 99   $ 435  
    Segment expenses       (52 )   (52 )   (63 )
    Segment net earnings $ 29   $ 18   $ 47   $ 372  
                     
    Stock-based compensation expense             (33 )   (33 )
    Amortization of property, equipment and intangible assets, excluding right-of-use assets (3 )   (4 )
    Restructuring expenses, net       (10 )   (6 )
    Unrealized carried interest included in segment net earnings – Credit   (5 )   (6 )
    Realized performance fees previously recognized in segment net earnings   2     5  
    Contingent consideration recovery       42  
    Impairment reversal of property and equipment       2  
    Integration expenses       (1 )
    Other   1     2  
    Earnings (loss) before income taxes   (1 )   373  
    Provision for income taxes   (1 )    
    Net earnings (loss)           $ (2 ) $ 373  
                     
    Segment net earnings per fully diluted share $ 0.38   $ 0.24   $ 0.62   $ 4.80  
    Net earnings (loss) per share                
    Basic           $ (0.02 ) $ 4.82  
    Diluted           $ (0.02 ) $ 4.81  

    (i) Refer to pages 27 and 28 of Onex’ 2024 Annual MD&A for further details concerning the composition of segmented results.

        Year ended December 31
        2024(i) 2023(i)
     
    ($ millions except per share amounts)   Investing     Asset Management     Total   Total
     
    Segment income $ 344   $ 252   $ 596   $ 1,098  
    Segment expenses       (231 )   (231 )   (281 )
    Segment net earnings $ 344   $ 21   $ 365   $ 817  
                     
    Stock-based compensation expense             (36 )   (75 )
    Amortization of property, equipment and intangible assets, excluding right-of-use assets (15 )   (24 )
    Restructuring expenses, net       (21 )   (46 )
    Carried interest from Falcon Funds previously recognized in segment net earnings   25      
    Unrealized carried interest included in segment net earnings – Credit   (10 )   (17 )
    Unrealized performance fees included in segment net earnings   (3 )    
    Impairment of goodwill, intangible assets and property and equipment       (162 )
    Contingent consideration recovery       42  
    Integration expenses       (4 )
    Other       1  
    Earnings before income taxes   305     532  
    Provision for income taxes   (2 )   (3 )
    Net earnings           $ 303   $ 529  
                     
    Segment net earnings per fully diluted share $ 4.45   $ 0.29   $ 4.74   $ 10.23  
    Net earnings per share                
    Basic           $ 4.01   $ 6.66  
    Diluted           $ 4.00   $ 6.65  

    (i) Refer to pages 27 and 29 of Onex’ 2024 Annual MD&A for further details concerning the composition of segmented results.

    Investing Capital(i)

    ($ millions except per share amounts)

    December 31, 2024
      December 31, 2023
     
    Private Equity            
    Onex Partners Funds $ 4,072   $ 4,445  
    ONCAP Funds   795     929  
    Other Private Equity   587     407  
    Carried Interest   264     252  
        5,718     6,033  
    Private Credit          
    Investments   924     904  
    Carried Interest   22     29  
        946     933  
               
    Real Estate       18  
    Cash and Near-Cash   1,578     1,466  
    Other Net Assets (Liabilities)   31     (17 )
    Investing Capital $ 8,273   $ 8,433  
    Investing Capital per fully diluted share (U.S. dollars)(ii) $ 113.70   $ 107.82  
    Investing Capital per fully diluted share (Canadian dollars)(ii) $ 163.54   $ 142.61  

    (i) Refer to the glossary in Onex’ Q4 2024 Annual MD&A for further details concerning the composition of investing capital.

    (ii) Fully diluted shares for investing capital per share were 72.8 million at December 31, 2024.

    Fee-Related Earnings (Loss) and Distributable Earnings

    ($ millions) Quarter Ended
    December 31, 2024
      Quarter Ended
    December 31, 2023
     
    Private Equity
    Management and advisory fees

    $

    25

     

    $

    26

     
    Total fee-related revenues from Private Equity $ 25   $ 26  
    Compensation expense   (17 )   (24 )
    Support and other net expenses   (8 )   (10 )
    Net contribution $   $ (8 )
             
    Structured Credit        
    Management and advisory fees $ 21   $ 16  
    Total fee-related revenues from Structured Credit $ 21   $ 16  
    Compensation expense   (6 )   (5 )
    Support and other net expenses   (3 )   (1 )
    Net contribution $ 12   $ 10  
             
    Other Credit
    Management and advisory fees
    Performance fees
    $ 4
    1
      $ 15
    4
     
    Total fee-related revenues from Other Credit $ 5   $ 19  
    Compensation expense   (6 )   (9 )
    Support and other net expenses   (5 )   (9 )
    Net contribution $ (6 ) $ 1  
             
    Asset management fee-related earnings $ 6   $ 3  
             
    Public Company and Onex Capital Investing        
    Compensation expense $ (3 ) $ (1 )
    Other net expenses   (4 )   (4 )
    Total expenses $ (7 ) $ (5 )
             
    Total fee-related earnings (loss) $ (1 ) $ (2 )
             
    Realized carried interest(i) $ 2   $ 7  
    Net realized gain on corporate investments   230     134  
    Distributable earnings $ 231   $ 139  

    (i) Includes realized carried interest from the Falcon Funds, when applicable.

    ($ millions) Year Ended
    December 31, 2024
      Year Ended
    December 31, 2023
     
    Private Equity
    Management and advisory fees
    $ 93   $ 112  
    Total fee-related revenues from Private Equity $ 93   $ 112  
    Compensation expense   (76 )   (85 )
    Support and other net expenses   (38 )   (39 )
    Net contribution $ (21 ) $ (12 )
             
    Structured Credit
    Management and advisory fees
    Performance fees
    $ 76
    4
      $ 61
     
    Total fee-related revenues from Structured Credit $ 80   $ 61  
    Compensation expense   (24 )   (22 )
    Support and other net expenses   (12 )   (9 )
    Net contribution $ 44   $ 30  
             
    Other Credit
    Management and advisory fees
    Performance fees
    $ 31
    4
      $ 79
    13
     
    Other income   2     2  
    Total fee-related revenues from Other Credit $ 37   $ 94  
    Compensation expense   (23 )   (48 )
    Support and other net expenses   (31 )   (52 )
    Net contribution $ (17 ) $ (6 )
             
    Asset management fee-related earnings $ 6   $ 12  
             
    Public Company and Onex Capital Investing        
    Compensation expense $ (13 ) $ (11 )
    Other net expenses   (14 )   (15 )
    Total expenses $ (27 ) $ (26 )
             
    Total fee-related earnings (loss) $ (21 ) $ (14 )
             
    Realized carried interest(i) $ 19   $ 16  
    Net realized gain on corporate investments   619     795  
    Distributable earnings $ 617   $ 797  

    (i) Includes realized carried interest from the Falcon Funds, when applicable.

    Fee-related earnings (loss) and distributable earnings are non-GAAP financial measures. The tables below provide reconciliations of Onex’ net earnings (loss) to fee-related earnings (loss) and distributable earnings during the quarters and years ended December 31, 2024 and 2023.

    ($ millions) Quarter Ended
    December 31, 2024
      Quarter Ended
    December 31, 2023

     
    Net earnings (loss) $ (2 ) $ 373  
    Provision for income taxes   1      
    Earnings (loss) before income taxes   (1 )   373  
    Stock-based compensation expense   33     33  
    Amortization of property, equipment and intangible assets, excluding right-of-use assets 3     4  
    Restructuring expenses, net   10     6  
    Unrealized carried interest included in segment net earnings – Credit 5     6  
    Realized performance fees previously recognized in segment net earnings (2 )   (5 )
    Contingent consideration recovery     (42 )
    Impairment reversal of property and equipment     (2 )
    Integration expenses     1  
    Other   (1 )   (2 )
    Total segment net earnings   47     372  
    Investing segment net earnings   (29 )   (326 )
    Net gain from carried interest(i)   (19 )   (48 )
    Total fee-related earnings (loss)   (1 )   (2 )
    Realized carried interest(i)   2     7  
    Realized gain on corporate investments   230     134  
    Total distributable earnings $ 231   $ 139  

    (i) Includes carried interest Onex is entitled to from the Falcon Funds.

    ($ millions) Year Ended
    December 31, 2024
      Year Ended
    December 31, 2023

     
    Net earnings $ 303   $ 529  
    Provision for income taxes   2     3  
    Earnings before income taxes   305     532  
    Stock-based compensation expense   36     75  
    Amortization of property, equipment and intangible assets, excluding right-of-use assets 15     24  
    Restructuring expenses, net   21     46  
    Carried interest from Falcon funds previously recognized in segment net earnings (25 )    
    Unrealized carried interest included in segment net earnings – Credit 10     17  
    Unrealized performance fees included in segment net earnings 3      
    Impairment of goodwill, intangible assets and property and equipment     162  
    Contingent consideration recovery     (42 )
    Integration expenses     4  
    Other       (1 )
    Total segment net earnings   365     817  
    Investing segment net earnings   (344 )   (815 )
    Net gain from carried interest(i)   (42 )   (16 )
    Total fee-related earnings (loss)   (21 )   (14 )
    Realized carried interest(i)   19     16  
    Realized gain on corporate investments   619     795  
    Total distributable earnings $ 617   $ 797  

    (i) Includes carried interest Onex is entitled to from the Falcon Funds.

    Cash and Near-Cash

    The table below provides a breakdown of cash and near-cash at Onex as at December 31, 2024 and December 31, 2023.

    ($ millions) December 31, 2024
      December 31, 2023
     
    Cash and cash equivalents – Investing segment(i) $ 840   $ 142  
    Management fees and recoverable fund expenses receivable(ii)   464     615  
    Cash and cash equivalents within Investment Holding Companies(iii)   156     398  
    Treasury investments   83      
    Subscription financing and short-term loan receivable(iv)   35     114  
    Treasury investments within Investment Holding Companies       197  
    Cash and near-cash $ 1,578   $ 1,466  

    (i) Excludes cash and cash equivalents allocated to the asset management segment related to accrued incentive compensation ($89 million (December 31, 2023 – $108 million)). The December 31, 2023 balance also excludes $15 million of cash and cash equivalents allocated to the asset management segment concerning the contingent consideration related to the 2020 acquisition of Onex Falcon.

    (ii) Includes management fees and recoverable fund expenses receivable from certain funds which Onex has elected to defer cash receipt from.

    (iii) Cash and cash equivalents is reduced by Onex’ share of uncalled expenses payable by the Investment Holding Companies of $36 million (December 31, 2023 – $35 million) and $2 million payable by the Investment Holding Companies for Onex’ management incentive programs related to a private equity realization (December 31, 2023 – less than $1 million). The December 31, 2023 balance also includes $22 million of restricted cash and cash equivalents for which the Company can readily remove the external restriction or for which the restriction will be removed in the near term.

    (iv) Includes $35 million of subscription financing receivable, including interest receivable, attributable to third-party investors in Onex Partners V and ONCAP V Funds (December 31, 2023 – $77 million attributable to third-party investors in certain Credit Funds, Onex Partners V and ONCAP V Funds). The December 31, 2023 balance also includes $37 million related to a short-term loan receivable from an Onex Partners operating company, which was repaid during 2024.

    The table below provides a reconciliation of the change in cash and near-cash from December 31, 2023 to December 31, 2024.

    ($ millions)    
    Cash and near-cash at December 31, 2023 $ 1,466  
    Private equity realizations and distributions   1,009  
    Private equity investments   (409 )
    Net private credit strategies investment activity   56  
    Repurchase of share capital of Onex Corporation (417 )
    Net stock-based compensation paid (60 )
    Cash dividends paid (23 )
    Reversal of Onex Falcon contingent consideration 15  
    Net other, including cash flows from asset management activities, operating costs and changes in working capital   (59 )
    Cash and near-cash at December 31, 2024 $ 1,578  

    (1) Refer to pages 27, 28 and 29 of Onex’ 2024 Annual MD&A for further details concerning the composition of segment net earnings. A reconciliation of total segment net earnings to net earnings (loss) is provided in the supplementary financial schedules in this press release.
    (2) Refer to the glossary in Onex’ 2024 Annual MD&A for details concerning the composition of fully diluted shares.
    (3) Asset management fee-related earnings excludes Onex’ public company expenses and other expenses associated with managing Onex’ investing capital and is a component of total fee-related earnings (loss).
    (4) Total fee-related earnings (loss) is a non-GAAP financial measure that does not have a standardized meaning prescribed under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). Therefore, it may not be comparable to similar financial measures disclosed by other companies. The most directly comparable financial measure under IFRS Accounting Standards to fee-related earnings (loss) is Onex’ net earnings (loss). Refer to the 2024 Results & Activity section of Onex’ 2024 Annual MD&A and the supplementary financial schedules in this press release for further details concerning fee-related earnings (loss).
    (5) Distributable earnings is a non-GAAP financial measure that does not have a standardized meaning prescribed under IFRS Accounting Standards. Therefore, it may not be comparable to similar financial measures disclosed by other companies. The most directly comparable financial measure under IFRS Accounting Standards to distributable earnings is Onex’ net earnings (loss). Refer to the 2024 Results & Activity section of Onex’ 2024 Annual MD&A and the supplementary financial schedules in this press release for further details concerning distributable earnings.
    (6) Refer to the glossary in Onex’ 2024 Annual MD&A for details concerning the composition of investing capital per fully diluted share. The percentage changes in investing capital per share exclude the impact of capital deployed in Onex’ asset management segment, where applicable, and dividends paid by Onex.
    (7) Adjusted to exclude the impact from the transfer of Onex Falcon.
    (8) Refer to the glossary in Onex’ 2024 Annual MD&A for details concerning the composition of run-rate management fees.
    (9) Cash and near-cash is a non-GAAP financial measure calculated using methodologies that are not in accordance with IFRS Accounting Standards. The presentation of this measure does not have a standardized meaning prescribed under IFRS Accounting Standards and therefore might not be comparable to similar financial measures presented by other companies. The most directly comparable financial measure under IFRS Accounting Standards to cash and near-cash is Onex’ consolidated cash and cash equivalents balance, which was $929 million at December 31, 2024 (December 31, 2023 – $265 million). Refer to the Cash and Near-Cash section of Onex’ 2024 Annual MD&A and the supplementary financial schedules in this press release for further details concerning Onex’ cash and near-cash.

    The MIL Network

  • MIL-OSI NGOs: Amnesty International responds to B.C. court ruling in Indigenous land defenders’ trial

    Source: Amnesty International –

    Amnesty International will consider prisoner-of-conscience designations in the cases of three Indigenous land defenders in Canada whose convictions were upheld by a British Columbia court.

    Sleydo’ (Molly Wickham), a Wing Chief (Cas Yikh house) of the Gidimt’en Clan of the Wet’suwet’en Nation, Shaylynn Sampson, a Gitxsan woman with Wet’suwet’en family connections, and Corey “Jayohcee” Jocko, a Kanien’kehá:ka (Mohawk), had asked the court to void their convictions on constitutional grounds. They argued that their arrests during – and detention after – a highly militarized November 2021 police raid on unceded Wet’suwet’en territory violated their rights under the Canadian Charter of Rights and Freedoms.

    On Tuesday, a British Columbia judge ruled that the conduct, including anti-Indigenous racist statements, of some Royal Canadian Mounted Police (RCMP)/Community Industry Response Group (C-IRG) members during the raid did indeed violate the defenders’ Charter rights. The ruling validates both the experiences of these land defenders and the broader experience of colonial violence that Indigenous Peoples have faced for more than 100 years from the RCMP. However, the judge refused to stay all charges against the defenders and said he would instead consider reduced sentences.

    Amnesty International is reviewing the implications of Tuesday’s decision. Should they receive a sentence that arbitrarily deprives them of their liberty, Amnesty will designate the affected land defenders as prisoners of conscience.

    “We are heartened by Justice Tammen’s stern condemnation of the racist and violent treatment Sleydo’, Shaylynn Sampson and Corey ‘Jayohcee’ Jocko endured during their arrests. Unfortunately, the systematic racism that led to their arrests remains unaddressed”

    -Ketty Nivyabandi, Secretary General of Amnesty International Canada’s English-speaking section

    “We are heartened by Justice Tammen’s stern condemnation of the racist and violent treatment Sleydo’, Shaylynn Sampson and Corey ‘Jayohcee’ Jocko endured during their arrests,” said Ketty Nivyabandi, Secretary General of Amnesty International Canada’s English-speaking section. “Unfortunately, the systematic racism that led to their arrests remains unaddressed. B.C. and Canada must take immediate steps to stop the criminalization of Indigenous land defenders in the first place. No one should be intimidated, harassed, or arrested, let alone convicted in a criminal court case, for exercising their constitutionally protected rights and protecting the natural environment we all share.

    France-Isabelle Langlois, general director of Amnistie internationale Canada francophone, declared: “Peaceful actions were taken by the Indigenous land defenders with the aim of protecting natural ecosystems that lessen the impacts of climate change. In this global context of the climate crisis, to punish them is preposterous, to say the least, no matter how small the sentence. These actions need to be widely applauded rather than scrutinized by the Court.

    “The Court’s decision to uphold the convictions of the three land defenders is part of a broader context of shrinking civic space in Canada, where Indigenous land defenders, environmentalists, and human right defenders are frequently the victims of political or police repression,” she added. “It is disappointing that we must remind the country and its institutions of their obligations under international law since Canada prides itself on being a leader in human rights.”

    “Peaceful actions were taken by the Indigenous land defenders with the aim of protecting natural ecosystems that lessen the impacts of climate change. In this global context of the climate crisis, to punish them is preposterous, to say the least, no matter how small the sentence. These actions need to be widely applauded rather than scrutinized by the Court”

    -France-Isabelle Langlois, general director of Amnistie internationale Canada francophone

    Amnesty International has vehemently condemned the criminalization of Wet’suwet’en and other land defenders opposed to the construction of Coastal GasLink (CGL) liquefied natural gas pipeline through the Nation’s unceded, ancestral territory. Construction on the 670-kilometre pipeline began without the free, prior and informed consent of the Wet’suwet’en Hereditary Chiefs, on behalf of their clans. This violates Canadian and international human rights law and standards, including the UN Declaration on the Rights of Indigenous Peoples, which was legislated into Canadian law on June 21, 2021.

    Based in part on witness testimony of four large-scale RCMP raids on Wet’suwet’en territory, Amnesty’s 2023 report ‘Removed from our land for defending it’: Criminalization, Intimidation and Harassment of Wet’suwet’en Land Defenders found that Wet’suwet’en land defenders and their supporters were arbitrarily detained for peacefully defending their land against the construction of the CGL pipeline and exercising their Indigenous rights and their right to peaceful assembly.

    In June and July 2022, the B.C. Prosecution Service (BCPS) charged 20 land defenders, including Sleydo’, Sampson and Jocko, with criminal contempt for disobeying an injunction order to stay away from pipeline construction sites, an order that unduly restricted the human rights of the land defenders and the Indigenous rights of the Wet’suwet’en Nation. Seven of the 20 land defenders pleaded guilty because of restrictive bail conditions, as well as the familial, psychological and financial impacts that the criminal proceedings imposed on them. Five other defenders had their charges dropped, and five more are awaiting trial.

    “This whole process has been a violation of my rights and responsibilities as an Indigenous person and my responsibility to the health and wellness of future generations and the Yintah,” Sleydo’ said during a news conference after the decision was handed down on Tuesday afternoon. “The colonial courts are not where our ability to live out our laws and ways of life should be determined. And yet here we are, over three years later, in a showdown between Wet’suwet’en law and colonial law after years of police violence and repression by the C-IRG, with no accountability. I refuse to allow the colonial courts to dehumanize and criminalize me. I belong to my land, my ancestors, and my people.

    “I am a mother, a daughter, a sister, an auntie, a good friend, and a leader. I am a singer, a hunter, a teacher, and a revolutionary. I am following the footsteps of my ancestors, and I carry their teachings with me in everything that I do.”

    “This whole process has been a violation of my rights and responsibilities as an Indigenous person and my responsibility to the health and wellness of future generations and the Yintah. (…) I refuse to allow the colonial courts to dehumanize and criminalize me. I belong to my land, my ancestors, and my people”

    -Sleydo’

    If Amnesty International names Sleydo’, Sampson and Jocko prisoners of conscience, it will be the second time the organization has applied that designation to a person held by Canada. In July 2024, Amnesty declared another Wet’suwet’en land defender – Likhts’amisyu Clan Wing Chief Dsta’hyl – a prisoner of conscience after the British Columbia court sentenced him to 60 days of house arrest. Like Sleydo’, Sampson and Jocko, Chief Dsta’hyl was charged and later convicted for allegedly violating the terms of the B.C. court injunction banning land-defence actions near the CGL pipeline, including in areas of the Wet’suwet’en Nation’s territory.

    “If the Canadian state decides to unjustly criminalize and confine Sleydo’, Shaylynn, and Corey, Amnesty International will not hesitate to designate them as prisoners of conscience,” said Ana Piquer, Americas director at Amnesty International. “Canada is on the sadly long list of countries in the Americas where land defenders remain at risk for their essential work.”

    “If the Canadian state decides to unjustly criminalize and confine Sleydo’, Shaylynn, and Corey, Amnesty International will not hesitate to designate them as prisoners of conscience. Canada is on the sadly long list of countries in the Americas where land defenders remain at risk for their essential work”

    -Ana Piquer, Americas director at Amnesty International

    The criminalization of Wet’suwet’en land defenders has sparked an international outcry and calls for Canada to respect Indigenous rights. Last year, Sleydo’, Sampson and Jocko were a featured case in Write for Rights, Amnesty International’s annual global letter-writing campaign. Since the fall, thousands of people around the world have sent letters and signed petitions calling on Canada to drop the charges against the three defenders.

    MIL OSI NGO

  • MIL-OSI: AGF Investments Announces February 2025 Cash Distributions for AGF Enhanced U.S. Equity Income Fund, AGF Total Return Bond Fund and AGF Systematic Global Infrastructure ETF

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 21, 2025 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGF Investments) today announced the February 2025 cash distributions for AGF Enhanced U.S. Equity Income Fund*, AGF Total Return Bond Fund* and AGF Systematic Global Infrastructure ETF, which pay monthly distributions. Unitholders of record on February 28, 2025 will receive cash distributions payable on March 6, 2025.

    Details regarding the final “per unit” distribution amounts are as follows:

    ETF Ticker Exchange  Cash Distribution Per Unit ($)
    AGF Enhanced U.S. Equity Income Fund* AENU Cboe Canada Inc.  $0.141900
    AGF Total Return Bond Fund* ATRB Cboe Canada Inc.  $0.081000
    AGF Systematic Global Infrastructure ETF QIF Cboe Canada Inc.  $0.142787

    *AGF Enhanced U.S. Equity Income Fund and AGF Total Return Bond Fund are mutual funds with an ETF series option.

    Further information about the AGF ETFs can be found at AGF.com.

    This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.

    AGF ETFs are ETFs offered by AGF Investments Inc. ETFs are listed and traded on organized Canadian exchanges and may only be bought and sold through licensed dealers.

    About AGF Management Limited

    Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

    AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

    Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With over $54 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

    About AGF Investments

    AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

    AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

    AGF Investments Inc. is a wholly-owned subsidiary of AGF Management Limited and conducts the management and advisory of mutual funds in Canada.

    Media Contact

    Amanda Marchment
    Director, Corporate Communications
    416-865-4160
    amanda.marchment@agf.com  

    The MIL Network

  • MIL-OSI USA: Sweater Weather in North America

    Source: NASA

    Despite global temperatures being well above normal in the third week of February 2025, a blast of frigid Arctic air spilled south across Canada into the central and eastern United States. The cold air came on the heels of a winter storm that pushed east across the Great Plains, Southeast, and Mid-Atlantic, bringing heavy snowfall to parts of Kentucky, West Virginia, North Carolina, Maryland, and Virginia.
    This map shows the extent of the cold snap on the morning of February 19. It was derived from the GEOS (Goddard Earth Observing System) model and represents air temperatures at 2 meters (about 6.5 feet) above the ground. The darkest blue areas are where the model indicates temperatures dropped to minus 22 degrees Fahrenheit (minus 30 degrees Celsius) or lower.
    In Antelope Creek, North Dakota, the National Weather Service reported a daytime low of -45°F (-43°C) on February 18. That same day, record-breaking cold hit both Bismarck and Minot, also in North Dakota, where temperatures plunged to -39°F and -33°F, respectively. Broad swaths of the Lower 48 faced temperatures that plummeted as much as 30-40°F below average for the time of year, according to news reports. National Weather Service offices issued cold weather advisories and extreme cold warnings for more than 93 million Americans, including people in Florida and Texas.
    The cold and snow in the United States came amid a period of unusual warmth in the Arctic. Arctic sea ice extent was at record lows for February, while temperatures in parts of Greenland and the Northwest Territories in Canada were running 15-30°F above average. Some researchers think that Arctic warming may contribute to cold weather outbreaks in the mid-latitudes by altering the polar vortex and the behavior of the jet stream, though meteorologist Bob Henson reported in Yale Climate Connections that “vigorous scientific debate” continues about this idea.
    NASA Earth Observatory image by Michala Garrison, using GEOS-5 data from the Global Modeling and Assimilation Office at NASA GSFC. Story by Adam Voiland.

    MIL OSI USA News

  • MIL-OSI: Kasu launches the highest risk-adjusted yields in RWA private credit

    Source: GlobeNewswire (MIL-OSI)

    DUBAI, United Arab Emirates, Feb. 21, 2025 (GLOBE NEWSWIRE) — Kasu, the most risk-optimised private credit platform in DeFi, is now live, offering institutional-grade yield opportunities with an unprecedented level of transparency, risk management, and borrower quality.

    Built on BASE, Kasu provides a sustainable 12-25% APY, offering the highest risk-adjusted yields in RWA private credit. This is achieved by lending exclusively to top-tier accounting firms and their clients in tier 1 economies: the US, Canada, Australia, and the UK.

    This approach ensures yields that are completely uncorrelated to crypto volatility or macroeconomic fluctuations, providing lenders with stable, high-quality returns.

    Apxium: the powerhouse behind Kasu’s zero-loss lending engine

    Kasu is powered by Apxium, a multi-award-winning SaaS+Fintech business whose proprietary technology is used by global accounting firms to manage and automate over $2.5 billion in invoices annually.

    This financial automation software accelerates the rate at which these firms collect payment from their invoices by up to 50%, thereby significantly increasing their cash flow, ultimately reducing risk to lenders on Kasu.

    Unlike other RWA lenders that have suffered over $200 million in losses in just the last three years, Apxium has an 8-year history with a 0% loss rate—a feat unheard of in RWA.

    “We’re not just another RWA lending platform—we’re redefining how real-world yield works in DeFi,” said Kasu Co-Founder, Luke Lombe. “By combining institutional-grade lending opportunities, industry-first transparency, and cutting-edge financial automation, Kasu is setting a new benchmark for sustainable, high risk-adjusted returns.”

    Best-in-class borrowers & risk structuring: lending to globally significant firms in Tier 1 economies

    Kasu exclusively lends to established accounting firms and their clients across the US, Canada, Australia, and the UK—a borrower class that is:

    • Highly regulated with strict financial oversight
    • Non-discretionary—these firms handle mission-critical services in all economic conditions, ensuring high repayment reliability
    • Low-risk, high-profit—less than 1% invoice default rate across the industry

    These borrowers include leading global accounting networks, US Top 25 firms, UK Top 15 firms, and Australia’s largest professional services firms.

    In addition, Kasu’s best-in-class risk management isn’t just theoretical—it’s engineered into every transaction, with multiple layers of borrower recourse and real-time financial tracking.

    This technology-driven risk management ensures that Lending Strategies on Kasu apply sophisticated credit risk structuring, making it safer for lenders, and with the highest level of transparency in the market.

    The future of yield is transparent, secure, and accessible

    While other private credit platforms force lenders to lend blindly into opaque structures, Kasu is setting a new standard.

    This includes loan performance and risk dashboard reporting, whilst providing lenders with full visibility and control over how their funds are allocated to some of the highest creditworthy business borrowers in private credit.

    This level of transparency, control, and risk management is unmatched in RWA lending.

    RWA lending, done right – democratising access to all lenders, including the U.S.

    Unlike most private credit RWA platforms that restrict participation to accredited investors, Kasu’s ethos of inclusiveness and financial democratisation means it is open to nearly all lenders—including everyday lenders in the United States, regardless of their wealth.

    This means for the first time, any US participant can access institutional-quality private credit strategies that were previously reserved for financial institutions.

    Kasu is designed to scale. Pre-launch, the platform achieved its hard cap of $3M in test TVL. With its advanced risk structuring, premier borrower base, and proprietary financial automation technology, Kasu is positioned to become the dominant force in RWA private credit.

    Strong backing – more to come

    Kasu launches with the support of early investors including Woodstock Fund, Morningstar Ventures, Cypher Capital, and Faculty Group.

    Perhaps more significantly, Kasu is in late-stage diligence for a significant debt facility from a major institutional lender—a move that, if finalised, would prove that institutional-grade capital is ready to enter DeFi in a material way.

    “The private credit market is a $1.6 trillion opportunity that’s been virtually untouched in crypto,” said Luke Lombe. “With the backing we’re securing, Kasu is positioned to be the Ondo of private credit, bridging TradFi with DeFi in a way that’s never been done before.”

    Kasu’s transparent lending model, borrower quality, and structured credit risk structuring set it apart in the rapidly evolving RWA landscape. By combining the highest risk-optimised yields in private credit with industry-first levels of transparency, Kasu is defining the next generation of DeFi lending.

    Kasu is live now. Start earning at www.kasu.finance.

    About Kasu

    Kasu is the most risk-optimised, fully transparent RWA private credit platform, providing institutional-grade, uncorrelated yields to any lender. By bridging DeFi with the multi-trillion-dollar private credit market, Kasu enables sustainable, and high-yield lending opportunities of the highest quality seen in RWA private credit. The platform is backed by leading lenders and has undergone multiple security audits by ChainSecurity and 0xCommit.

    About Faculty Group

    Faculty Group is a collective of blockchain-native companies that builds, invests in, and advises Web3 innovators. With over 100 staff worldwide, Faculty provides investment capital for early-stage projects, underpinned by a comprehensive suite of venture-building services, including product development, marketing, market making, and token economics—all under one banner.

    Press Inquiries for Kasu:
    Leon Ploubidis 
    Growth Strategy and Operations 
    Leon@kasu.finance

    Arvin Nathan, PR
    an@faculty.group

    Disclaimer: This press release is provided by Kasu .The statements, views, and opinions expressed in this content are solely those of the Kasu .and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8f465bcf-d2d4-407d-aec1-d9d9e766340b

    The MIL Network

  • MIL-OSI United Kingdom: The Global Geopolitical Situation: Foreign Secretary’s speech at the G20 in South Africa

    Source: United Kingdom – Executive Government & Departments 3

    Speech

    The Global Geopolitical Situation: Foreign Secretary’s speech at the G20 in South Africa

    Foreign Secretary David Lammy’s intervention on Discussions on the Global Geopolitical Situation at the G20 Foreign Ministerial Meeting in South Africa.

    Thank you very much Ronald [Ronald Lamola, Minister of International Relations and Cooperation of South Africa] and let me say, my dear brother, what a joy is to see the G20 in Africa at long last. And we thank Brazil for its stewardship last year.

    The challenges that we face are truly global. We will not begin to tackle them unless we harness the potential of this continent, bursting with growth and opportunities and with so many young people, talented young people at its heart.

    The starkest challenge we face is escalating conflict, both between and within nations, driving vicious cycles of grievance, displacement and low growth.

    Your presidency, Ronald, calls for solidarity, and solidarity starts by recognising and naming the victims of war and injustice:

    • innocent Ukrainians enduring bombardment night after night from Odessa to Zaphorizhya
    • the hostages still cruelly held underground by Hamas, 16 months on from the trauma of October the 7th
    • the Palestinian civilians driven from their homes in Gaza and the West Bank
    • the Sudanese refugees flee their burning villages to escape across the border to Chad, the overwhelming majority of them, women and children having endured the most unimaginable and indiscriminate violence

    As I said when I visited Chad, there can be no geopolitical stability, whilst there remains a hierarchy of conflicts, with those on this continent finding themselves at the bottom of the global pile.

    And that’s why, since starting this job, I’ve made a reset with the so called Global South, a central plank of the UK foreign policy, and it’s why I doubled British aid for Sudan, and I prepared a conference in London to push for a political process which will end the fighting and protect civilians.

    And that’s why I’ve called out the Rwandan Defence Force operations in the eastern DRC as a blatant breach of the UN Charter which risks spiralling into a regional conflict, and that’s why I will again make clear to President Kagame, that further breaches of DRC’s sovereignty will have consequences.

    Because at the heart of my government’s approach to foreign policy lies the belief that regional and geopolitical stability can only be delivered through respect for international law and the principles of the UN Charter.

    And as my Canadian, Australian, Japanese colleagues have said, respect for international law must underwrite a free and open Indo Pacific, just as it must underwrite the Euro Atlantic, with the security of those 2 regions ever more closely linked.

    And as we turn to the Middle East, the ceasefire in Gaza is painfully fragile, I’m grateful that so many of us here today are working together to ensure that it holds we must continue to work together tirelessly to secure the release of the remaining hostages, to bolster the Palestinian Authority, and to boost aid into Gaza and to develop a long term plan for governance and security on the strip so that we can advance towards, a two-state solution, which remains the only long-term viable pathway to peace.

    And finally, in Ukraine, the only just and lasting peace will be a peace that is consistent with the UN Charter, and we want that as soon as possible.

    You know, mature countries learn from their colonial failures and their wars, and Europeans have had much to learn over the generations and the centuries.

    But I’m afraid to say that Russia has learned nothing. I listened carefully to Minister Lavrov intervention just now he’s, of course, left his seat, hoping to hear some readiness to respect Ukraine’s sovereignty.

    I was hoping to hear some sympathy for the innocent victims of the aggression. I was hoping to hear some readiness to seek a durable peace.

    What I heard was the logic of imperialism dressed up as a realpolitik, and I say to you all, we should not be surprised, but neither should we be fooled.

    We are at a crucial juncture in this conflict, and Russia faces a test. If Putin is serious about a lasting peace, it means finding a way forward which respects Ukraine’s sovereignty and the UN Charter which provides credible security guarantees, and which rejects Tsarist imperialism, and Britain is ready to listen.

    But we expect to hear more than the Russian gentleman’s tired fabrications.

    Updates to this page

    Published 20 February 2025

    MIL OSI United Kingdom

  • MIL-OSI Asia-Pac: President Lai meets Abe Akie, wife of late Prime Minister Abe Shinzo of Japan

    Source: Republic of China Taiwan

    Details
    2025-02-20
    President Lai attends opening of 2025 Halifax Taipei forum
    On the afternoon of February 20, President Lai Ching-te attended the opening of the 2025 Halifax Taipei forum. In remarks, President Lai thanked the Halifax International Security Forum for their strong support for Taiwan, and for having chosen Taiwan as the first location outside North America to hold a forum. Noting that we face a complex global landscape, the president called on the international community to take action. He said that as authoritarianism consolidates, democratic nations must also come closer in solidarity, and called on the international community to create non-red global supply chains, as well as unite to usher in peace. President Lai emphasized that Taiwan will work toward maintaining peace and stability in the Taiwan Strait, and collaborate with democratic partners to form a global alliance for the AI chip industry and together greet a bright, new era. A transcript of President Lai’s remarks follows: To begin, I want to give a warm welcome to all the distinguished guests here at the very first Halifax Taipei forum. The Halifax International Security Forum, held every year in Canada, has been an important gathering for freedom-loving nations worldwide. I would like to thank Halifax and President [Peter] Van Praagh for their strong support for Taiwan. Every year since 2018, Taiwan has been invited to participate in the forum. Last year, former President Tsai Ing-wen was invited to speak, and this year, Halifax has chosen Taiwan as the first location outside North America to hold a forum. As President Van Praagh has said, “While the security challenges ahead are too big for any single country to solve alone, there is no challenge that can’t be met when the world’s democracies work together.” Today, we have world leaders and experts who traveled from afar to be here, showing that they value and support Taiwan. It demonstrates solidarity among democracies and the determination to take on challenges as one. I would like to express my gratitude and admiration to all of you for serving as defenders of freedom. At this very moment, Russia’s invasion of Ukraine is still ongoing. Authoritarian regimes including China, Russia, North Korea, and Iran continue to consolidate. China is hurting economies around the world through its dumping practices. We face grave challenges to global economic order, democracy, freedom, peace, and stability. Taiwan holds a key position on the first island chain, directly facing an authoritarian threat. But we will not be intimidated. We will stand firm and safeguard our national sovereignty, maintain our free and democratic way of life, and uphold peace and stability across the Taiwan Strait. Taiwan cherishes peace, but we also have no delusions about peace. We will uphold the spirit of peace through strength, using concrete actions to build a stronger Taiwan and bolster the free and democratic community. I sincerely thank the international community for continuing to attach importance to the situation in the Taiwan Strait. Recently, US President Donald Trump and Japan’s Prime Minister Ishiba Shigeru issued a joint leaders’ statement expressing their firm support for peace and stability across the Taiwan Strait, and for Taiwan’s participation in international affairs. As we face a complex global landscape, I call on the international community to take the following actions: First, as authoritarianism consolidates, democratic nations must also come closer in solidarity. Just a few days ago, the top diplomats of the US, Japan, and South Korea held talks, underlining the importance of maintaining peace and stability across the Taiwan Strait. They also conveyed their stance against “any effort to destabilize democratic institutions, economic independence, and global security.” On these issues, Taiwan will also continue to contribute its utmost. I recently announced that we will prioritize special budget allocations to ensure that our defense budget exceeds 3 percent of GDP.  Soon after I assumed office last year, I formed the Whole-of-Society Defense Resilience Committee at the Presidential Office. This committee aims to combine the strengths of government and civil society to enhance our resilience in national defense, economic livelihoods, disaster prevention, and democracy. We will also deepen our strategic partnerships in the democratic community to mutually increase defense resilience, demonstrate deterrence, and achieve our goal of peace throughout the world. Second, let’s create non-red global supply chains.  For the democratic community to deter the expansion of authoritarianism, it must have strong technological capabilities. These can serve as the backbone of national defense, promote industrial development, and enhance economic resilience. So, in addressing China’s red supply chain and the impact of its dumping, Taiwan is willing and able to work with global democracies to maintain the technological strengths among our partners and build resilient non-red supply chains. As a major semiconductor manufacturing nation, Taiwan will introduce an initiative on semiconductor supply chain partnerships for global democracies. We will collaborate with our democratic partners to form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. The achievements of today’s semiconductor industry in Taiwan can be attributed to our collective efforts. Government, industry, academia, and research institutions had to overcome various challenges over the last 50 years for us to secure this position.  We hope Taiwan can serve as a base for linking the capabilities of our democratic partners so that each can play a suitable role in the semiconductor industry chain and develop its own strengths, deepening our mutually beneficial cooperation in technology. This benefits all of us. Moreover, it allows us to further enhance deterrence and maintain global security. Third, let’s unite to usher in peace. China has not stopped intimidating Taiwan politically and militarily. Last year, China launched several large-scale military exercises in the Taiwan Strait. Its escalation of gray-zone aggression now poses a grave threat to the peace and stability of the Indo-Pacific region. As a responsible member of the international community, Taiwan will maintain the status quo. We will not seek conflict. Rather, we are willing to engage in dialogue with China, under the principles of parity and dignity, and work toward maintaining peace and stability in the Taiwan Strait. As the agenda of this forum suggests, democracy and freedom create more than just opportunities; they also bring resilience, justice, partnerships, and security. Taiwan will continue working alongside its democratic partners to greet a bright, new era. Once again, a warm welcome to all of you. I wish this forum every success. Thank you. Also in attendance at the event were Mrs. Abe Akie, wife of the late former Prime Minister Abe Shinzo of Japan, and Halifax International Security Forum President Van Praagh.

    Details
    2025-02-20
    President Lai meets British-Taiwanese All-Party Parliamentary Group delegation
    On the morning of February 18, President Lai Ching-te met with a delegation from the British-Taiwanese All-Party Parliamentary Group (APPG). In remarks, President Lai thanked the delegation members, the Parliament of the United Kingdom, and the UK government for continuing to demonstrate support for Taiwan through a variety of means. He also stated that Taiwan-UK relations have advanced significantly in recent years, noting that the Taiwan-UK Enhanced Trade Partnership (ETP) is the first institutionalized economic and trade framework signed between Taiwan and any European country. The president said he looks forward to continuing to deepen Taiwan-UK relations and jointly maintaining regional and global peace and stability, and indicated that together, we can create win-win developments for both Taiwan and the UK and Taiwan and European nations. A translation of President Lai’s remarks follows: This is the first UK parliamentary delegation of the current session to visit Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. APPG Chair Sarah Champion visited Taiwan last May to attend the inauguration ceremony of myself and Vice President Bi-khim Hsiao. In July, she also attended the annual summit of the Inter-Parliamentary Alliance on China (IPAC), which was held in Taipei. I am delighted that we are meeting once again. Taiwan-UK relations have advanced significantly in recent years. I would especially like to thank our distinguished guests, as well as the UK Parliament and government, for continuing to demonstrate support for Taiwan through a variety of means. For example, the House of Commons held a debate on Taiwan’s international status last November. After the debate, a motion was unanimously passed affirming that United Nations General Assembly (UNGA) Resolution 2758 does not mention Taiwan. Responding to the motion, Parliamentary Under-Secretary of State Catherine West stated that the UK opposes any attempt to broaden the interpretation of the resolution to rewrite history. This highlighted concrete progress in Taiwan-UK bilateral relations. I would also like to thank the UK Parliament and government for openly opposing on multiple occasions any unilateral change to the status quo across the Taiwan Strait, and for emphasizing that the security of the Indo-Pacific and transatlantic regions is closely intertwined. We look forward to continuing to deepen Taiwan-UK relations and jointly maintaining regional and global peace and stability. Together, we can create win-win developments for both Taiwan and the UK and Taiwan and European nations. For example, the Taiwan-UK ETP is the first institutionalized economic and trade framework signed between Taiwan and any European country. We hope to swiftly conclude negotiations on signing sub-arrangements on investment, digital trade, and energy and net-zero transition. This will facilitate even more exchanges and cooperation between Taiwan and the UK. We also hope that the UK will continue to support Taiwan’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Together, we can build even more resilient global supply chains and further contribute to global prosperity and development. I believe that this visit adds to a strong and solid foundation for future Taiwan-UK cooperation. Thank you once again for backing Taiwan. I wish you a fruitful and successful visit. Chair Champion then delivered remarks, thanking President Lai for his warm welcome and for the hospitality he has shown to her and the delegation, and thanking Taiwan’s excellent team of officials for their care and attention. Chair Champion expressed that she thinks the IPAC conference held in Taiwan at the end of July last year was very significant, with legislators from 23 countries coming to show support for Taiwan, adding that that is something they have built on since the conference. She stated that she is also very proud that the UK Parliament supported the motion which made very clear that UNGA Resolution 2758 is specific to China and only to China, expressing that it was important and powerful that they recognize that. The chair went on to say that after the UK’s general election, more than half of the members of parliament are now new. She said she is very proud that there are new MPs as part of the delegation, and that she hopes it gives President Lai reassurance that their commitment to Taiwan is still there.  Chair Champion emphasized that the all-party group is important because it is indeed all-party, and that they work together for their common interests, stating that the common interest for the UK and for the world is to maintain Taiwan’s sovereignty. She also noted that the United States has now come out very much in support of Taiwan, which she said she hopes encourages other countries around the world to do the same. Chair Champion said that the UK will be going into the 27th trade negotiation with Taiwan, and that they hope the partnership that develops is very fruitful. The chair closed by saying that it is wonderful for the delegation to be meeting President Lai, as well as legislators and ministers, and to be understanding more about the culture of Taiwan so that they can build a deeper, longer-lasting friendship. The delegation also included Lord Purvis of Tweed of the House of Lords and Members of Parliament Ben Spencer, Helena Dollimore, Noah Law, and David Reed. The delegation was accompanied to the Presidential Office by Political and Communications Director at the British Office in Taipei Natasha Harrington.  

    Details
    2025-02-20
    President Lai meets former United States Deputy National Security Advisor Matthew Pottinger
    On the morning of February 17, President Lai Ching-te met with a delegation led by former United States Deputy National Security Advisor Matthew Pottinger. In remarks, President Lai thanked the delegation for demonstrating staunch support for Taiwan through their visit. The president pointed out that increased cooperation between authoritarian regimes is posing risks and challenges to the geopolitical landscape and regional security. He emphasized that only by bolstering our defense capabilities can we demonstrate effective deterrence and maintain peace and stability across the Taiwan Strait and around the world. The president stated that moving forward, Taiwan will continue to enhance its self-defense capabilities. He also expressed hope of strengthening the Taiwan-US partnership and jointly building secure and resilient non-red supply chains so as to ensure that Taiwan, the US, and democratic partners around the world maintain a technological lead. A translation of President Lai’s remarks follows: I am delighted to welcome our good friends Mr. Pottinger and retired US Rear Admiral Mr. Mark Montgomery to Taiwan once again. Last June, Mr. Pottinger and Mr. Ivan Kanapathy came to Taiwan to launch their new book The Boiling Moat. During that visit, they also visited the Presidential Office. We held an extensive exchange of views on Taiwan-US relations and regional affairs right here in the Taiwan Heritage Room. Now, as we meet again eight months later, I am pleased to learn that Mr. Kanapathy is now serving on the White House National Security Council. The Mandarin translation of The Boiling Moat is also due to be released in Taiwan very soon. This book offers insightful observations from US experts regarding US-China-Taiwan relations and valuable advice for the strengthening of Taiwan’s national defense, security, and overall resilience. I am sure that Taiwanese readers will benefit greatly from it. I understand that this is Mr. Montgomery’s fourth visit to Taiwan and that he has long paid close attention to Taiwan-related issues. I look forward to an in-depth discussion with our two friends on the future direction of Taiwan-US relations and cooperation. Increased cooperation between authoritarian regimes is posing risks and challenges to the geopolitical landscape and regional security. One notion we all share is peace through strength. That is, only by bolstering our defense capabilities and fortifying our defenses can we demonstrate effective deterrence and maintain peace and stability across the Taiwan Strait and around the world. Moving forward, Taiwan will continue to enhance its self-defense capabilities. We also hope to strengthen the Taiwan-US partnership in such fields as security, trade and the economy, and energy. In addition, we will advance cooperation in critical and innovative technologies and jointly build secure and resilient non-red supply chains. This will ensure that Taiwan, the US, and democratic partners around the world maintain a technological lead. We believe that closer Taiwan-US exchanges and cooperation not only benefit national security and development but also align with the common economic interests of Taiwan and the US. I want to thank Mr. Pottinger and Mr. Montgomery once again for visiting and for continuing to advance Taiwan-US exchanges, demonstrating staunch support for Taiwan. Let us continue to work together to deepen Taiwan-US relations. I wish you a smooth and fruitful visit.  Mr. Pottinger then delivered remarks, first congratulating President Lai on his one-year election anniversary and on the state of the economy, which, he added, is doing quite well. Mentioning President Lai’s recent statement pledging to increase Taiwan’s defense budget to above 3 percent of GDP, Mr. Pottinger said he thinks that the benchmark is equal to what the US spends on its defense and that it is a good starting point for both countries to build deterrence. Echoing the president’s earlier remarks, Mr. Pottinger said that peace through strength is the right path for the US and for Taiwan right now at a moment when autocratic, aggressive governments are on the march. He then paraphrased the words of former US President George Washington in his first inaugural address, saying that the best way to keep the peace is to be prepared at all times for war, which captures the meaning of peace through strength. In closing, he said he looks forward to exchanging views with President Lai.

    Details
    2025-02-20
    President Lai meets Deputy Prime Minister Thulisile Dladla of the Kingdom of Eswatini
    On the afternoon of February 11, President Lai Ching-te met with a delegation led by Deputy Prime Minister Thulisile Dladla of the Kingdom of Eswatini. In remarks, President Lai thanked Eswatini for continuing to support Taiwan’s international participation at international venues. The president stated that Taiwan and Eswatini work closely in such areas as agriculture, the economy and trade, education, and healthcare, and expressed hope that the two countries will continue to support each other on the international stage and strive together for the well-being of both peoples.  A translation of President Lai’s remarks follows: I warmly welcome our distinguished guests to the Presidential Office. Deputy Prime Minister Dladla previously visited Taiwan while serving as minister of foreign affairs. This is her first time leading a delegation here as deputy prime minister. I want to extend my sincerest welcome. Deputy Prime Minister Dladla has earned a high degree of recognition and trust from His Majesty King Mswati III. She was not only Eswatini’s first woman foreign minister, but is also the second woman to have held her current key position. She shows an active interest in people’s welfare, and has a reputation for being deeply devoted to her compatriots. I have great admiration for this. I am truly delighted to meet with Deputy Prime Minister Dladla today. I would like to take this opportunity to once again express my gratitude to His Majesty the King for leading a delegation to attend the inauguration ceremony for myself and Vice President Bi-khim Hsiao last year. This demonstrated the close diplomatic ties between our countries. I also want to thank Eswatini for continuing to support Taiwan’s international participation at international venues. I would ask that when Deputy Prime Minister Dladla returns to Eswatini, she conveys Taiwan’s greetings and gratitude to His Majesty the King and Her Majesty the Queen Mother Ntombi Tfwala. Diplomatic ties between Taiwan and Eswatini have endured for over half a century. Our two nations have continued to work closely in such areas as agriculture, the economy and trade, education, and healthcare. Our largest collaboration to date has been assisting Eswatini in the construction of a strategic oil reserve facility. We will continue to push forward with this project, and look forward to achieving even greater results in all areas. I understand that Deputy Prime Minister Dladla is very concerned about issues regarding gender equality and women’s empowerment. During her term as foreign minister, she facilitated bilateral cooperation in those areas. Now, as deputy prime minister, she is actively attending to the disadvantaged and advancing social welfare. These policies are very much in line with the priorities of my administration. I look forward to strengthening cooperation with Deputy Prime Minister Dladla for the benefit of both our societies. Taiwan and Eswatini are peace-loving nations. Faced with a constantly changing international landscape and the growing threat posed by authoritarianism, we hope that our two countries will continue to support each other on the international stage and strive together for the well-being of both our peoples. In closing, I wish Deputy Prime Minister Dladla and our distinguished guests a pleasant and successful visit. Deputy Prime Minister Dladla then delivered remarks, first greeting President Lai on behalf of the King, the Queen Mother, and the people of Eswatini, and extending gratitude for the warm reception afforded to her and her delegation, which underscores the strong bonds of friendship between our two nations. The deputy prime minister stated that, in reflecting on the fruits of our partnership, the evidence of Taiwan’s commitment to Eswatini is all around us. The strategic oil reserve project launching in April, she indicated, will redefine Eswatini’s energy security, and the Central Bank complex and electrification project stand as monuments of Taiwan’s vision for Eswatini’s progress and indicate that our partnerships are very strong. Deputy Prime Minister Dladla pointed out that education is the foundation of any nation’s progress, and that Taiwan’s contribution to Eswatini’s education sector cannot be overstated. Through Ministry of Foreign Affairs scholarship programs, she said, Eswatini has sent numerous students to Taiwan, where they’ve received world-class education in various disciplines, including engineering, business, and medicine. In turn, she said, these graduates are now contributing to the development of Eswatini. The deputy prime minister stated that Taiwan has also strengthened Eswatini’s industrial and technological sectors, with collaborations and partnerships that create new opportunities for employment and innovation, and that Taiwan’s technical and medical assistance has strengthened Eswatini’s healthcare systems and uplifted the expertise of its professionals. Deputy Prime Minister Dladla also congratulated President Lai once again on his presidency, which she stated will lead Taiwan to new heights, adding that His Majesty coming to Taiwan personally for the inauguration was a resounding declaration of Eswatini’s enduring support for Taiwan’s sovereignty, stability, and rightful place on the world stage. She emphasized that Eswatini stands with Taiwan always and unwaveringly. In conclusion, the deputy prime minister stated that Eswatini fully agrees with Taiwan that we must all safeguard our national sovereignty and protect the lives and property of our people. She said that our common enemy will always be poverty and natural disasters, but against all odds, we will stand united, and we shall remain united and be one. The delegation was accompanied to the Presidential Office by Eswatini Ambassador Promise Sithembiso Msibi.

    Details
    2025-02-20
    Presidential Office thanks US and Japan for joint leaders’ statement
    On February 7 (US EST), President Donald Trump of the United States and Prime Minister Ishiba Shigeru of Japan issued a joint leaders’ statement reiterating “the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity for the international community.” In the statement, the two leaders also “encouraged the peaceful resolution of cross-strait issues, and opposed any attempts to unilaterally change the status quo by force or coercion” and “expressed support for Taiwan’s meaningful participation in international organizations.” Presidential Office Spokesperson Karen Kuo (郭雅慧) on February 8 expressed sincere gratitude on behalf of the Presidential Office to the leaders of both countries for taking concrete action to demonstrate their firm support for peace and stability across the Taiwan Strait and for Taiwan’s international participation. Spokesperson Kuo pointed out that there is already a strong international consensus on the importance of peace and stability in the Indo-Pacific region. The spokesperson emphasized that Taiwan, as a responsible member of the international community, is capable and willing to work together with the international community and will continue strengthening its self-defense capabilities as it deepens its trilateral security partnership with the US and Japan and works alongside like-minded countries to uphold the rules-based international order. The spokesperson said that Taiwan will work toward ensuring a free and open Taiwan Strait and Indo-Pacific region, as well as global peace, stability, and prosperity, as it continues to act as a force for good in the world.

    Details
    2025-02-14
    President Lai holds press conference following high-level national security meeting
    On the morning of February 14, President Lai Ching-te convened the first high-level national security meeting of the year, following which he held a press conference. In remarks, President Lai announced that in this new year, the government will prioritize special budget allocations to ensure that Taiwan’s defense budget exceeds 3 percent of GDP. He stated that the government will also continue to reform national defense, reform our legal framework for national security, and advance our economic and trade strategy of being rooted in Taiwan while expanding globally. The president also proposed clear-cut national strategies for Taiwan-US relations, semiconductor industry development, and cross-strait relations. President Lai indicated that he instructed the national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches outlined. He also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. He expressed hope that as long as citizens remain steadfast in their convictions, are willing to work hand in hand, stand firm amidst uncertainty, and look for ways to win within changing circumstances, Taiwan is certain to prevail in the test of time yet again. A translation of President Lai’s remarks follows: First, I would like to convey my condolences for the tragic incident which occurred at the Shin Kong Mitsukoshi department store in Taichung, which resulted in numerous casualties. I have instructed Premier Cho Jung-tai (卓榮泰) to lead the relevant central government agencies in assisting Taichung’s municipal government with actively resolving various issues regarding the incident. It is my hope that these issues can be resolved efficiently. Earlier today, I convened this year’s first high-level national security meeting. I will now report on the discussions from the meeting to all citizens. 2025 is a year full of challenges, but also a year full of hope. In today’s global landscape, the democratic world faces common threats posed by the convergence of authoritarian regimes, while dumping and unfair competition from China undermine the global economic order. A new United States administration was formed at the beginning of the year, adopting all-new strategies and policies to address challenges both domestic and from overseas. Every nation worldwide, including ours, is facing a new phase of changes and challenges. In face of such changes, ensuring national security, ensuring Taiwan’s indispensability in global supply chains, and ensuring that our nation continues to make progress amidst challenges are our top priorities this year. They are also why we convened a high-level national security meeting today. At the meeting, the national security team, the administrative team led by Premier Cho, and I held an in-depth discussion based on the overall state of affairs at home and abroad and the strategies the teams had prepared in response. We summed up the following points as an overall strategy for the next stage of advancing national security and development. First, for overall national security, so that we can ensure the freedom, democracy, and human rights of the Taiwanese people, as well as the progress and development of the nation as we face various threats from authoritarian regimes, Taiwan must resolutely safeguard national sovereignty, strengthen self-sufficiency in national defense, and consolidate national defense. Taiwan must enhance economic resilience, maintain economic autonomy, and stand firm with other democracies as we deepen our strategic partnerships with like-minded countries. As I have said, “As authoritarianism consolidates, democratic nations must come closer in solidarity!” And so, in this new year, we will focus on the following three priorities: First, to demonstrate our resolve for national defense, we will continue to reform national defense, implement whole-of-society defense resilience, and prioritize special budget allocations to ensure that our defense budget exceeds 3 percent of GDP. Second, to counter the threats to our national security from China’s united front tactics, attempts at infiltration, and cognitive warfare, we will continue with the reform of our legal framework for national security and expand the national security framework to boost societal resilience and foster unity within. Third, to seize opportunities in the restructuring of global supply chains and realignment of the economic order, we will continue advancing our economic and trade strategy of being rooted in Taiwan while expanding globally, strengthening protections for high-tech, and collaborating with our friends and allies to build supply chains for global democracies. Everyone shares concern regarding Taiwan-US relations, semiconductor industry development, and cross-strait relations. For these issues, I am proposing clear-cut national strategies. First, I will touch on Taiwan-US relations. Taiwan and the US have shared ideals and values, and are staunch partners within the democratic, free community. We are very grateful to President Donald Trump’s administration for their continued support for Taiwan after taking office. We are especially grateful for the US and Japan’s joint leaders’ statement reiterating “the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity for the international community,” as well as their high level of concern regarding China’s threat to regional security. In fact, the Democratic Progressive Party government has worked very closely with President Trump ever since his first term in office, and has remained an international partner. The procurement of numerous key advanced arms, freedom of navigation critical for security and stability in the Taiwan Strait, and many assisted breakthroughs in international diplomacy were made possible during this time. Positioned in the first island chain and on the democratic world’s frontline countering authoritarianism, Taiwan is willing and will continue to work with the US at all levels as we pursue regional stability and prosperity, helping realize our vision of a free and open Indo-Pacific. Although changes in policy may occur these next few years, the mutual trust and close cooperation between Taiwan and Washington will steadfastly endure. On that, our citizens can rest assured. In accordance with the Taiwan Relations Act and the Six Assurances, the US announced a total of 48 military sales to Taiwan over the past eight years amounting to US$26.265 billion. During President Trump’s first term, 22 sales were announced totaling US$18.763 billion. This greatly supported Taiwan’s defensive capabilities. On the foundation of our close cooperation with the past eight years’ two US administrations, Taiwan will continue to demonstrate our determination for self-defense, accelerate the bolstering of our national defense, and keep enhancing the depth and breadth of Taiwan-US security cooperation, along with all manner of institutional cooperation. In terms of bilateral economic cooperation, Taiwan has always been one of the US’s most reliable trade partners, as well as one of the most important cooperative partners of US companies in the global semiconductor industry. In the past few years, Taiwan has greatly increased both direct and indirect investment in the US. By 2024, investment surpassed US$100 billion, creating nearly 400,000 job opportunities. In 2023 and 2024, investment in the US accounted for over 40 percent of Taiwan’s overall foreign investment, far surpassing our investment in China. In fact, in 2023 and 2024, Taiwanese investment in China fell to 11 percent and 8 percent, respectively. The US is now Taiwan’s biggest investment target. Our government is now launching relevant plans in accordance with national development needs and the need to establish secure supply systems, and the Executive Yuan is taking comprehensive inventory of opportunities for Taiwan-US economic and trade cooperation. Moving forward, close bilateral cooperation will allow us to expand US investment and procurement, facilitating balanced trade. Our government will also strengthen guidance and support for Taiwanese enterprises on increasing US investment, and promote the global expansion and growth of Taiwan’s industries. We will also boost Taiwan-US cooperation in tech development and manufacturing for AI and advanced semiconductors, and work together to maintain order in the semiconductor market, shaping a new era for our strategic economic partnership. Second, the development of our semiconductor industry. I want to emphasize that Taiwan, as one of the world’s most capable semiconductor manufacturing nations, is both willing and able to address new situations. With respect to President Trump’s concerns about our semiconductor industry, the government will act prudently, strengthen communications between Taiwan and the US, and promote greater mutual understanding. We will pay attention to the challenges arising from the situation and assist businesses in navigating them. In addition, we will introduce an initiative on semiconductor supply chain partnerships for global democracies. We are willing to collaborate with the US and our other democratic partners to develop more resilient and diversified semiconductor supply chains. Leveraging our strengths in cutting-edge semiconductors, we will form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. Through international cooperation, we will open up an entirely new era of growth in the semiconductor industry. As we face the various new policies of the Trump administration, we will continue to uphold a spirit of mutual benefit, and we will continue to communicate and negotiate closely with the US government. This will help the new administration’s team to better understand how Taiwan is an indispensable partner in the process of rebuilding American manufacturing and consolidating its leadership in high-tech, and that Taiwan-US cooperation will benefit us both. Third, cross-strait relations. Regarding the regional and cross-strait situation, Taiwan-US relations, US-China relations, and interactions among Taiwan, the US, and China are a focus of global attention. As a member of the international democratic community and a responsible member of the region, Taiwan hopes to see Taiwan-US relations continue to strengthen and, alongside US-China relations, form a virtuous cycle rather than a zero-sum game where one side’s gain is another side’s loss. In facing China, Taiwan will always be a responsible actor. We will neither yield nor provoke. We will remain resilient and composed, maintaining our consistent position on cross-strait relations: Our determination to safeguard our national sovereignty and protect our free and democratic way of life remains unchanged. Our efforts to maintain peace and stability in the Taiwan Strait, as well as our willingness to work alongside China in the pursuit of peace and mutual prosperity across the strait, remain unchanged. Our commitment to promoting healthy and orderly exchanges across the strait, choosing dialogue over confrontation, and advancing well-being for the peoples on both sides of the strait, under the principles of parity and dignity, remains unchanged. Regarding the matters I reported to the public today, I have instructed our national security and administrative teams to take swift action and deliver results, working within a stable strategic framework and according to the various policies and approaches I just outlined. I have also instructed them to keep a close watch on changes in the international situation, seize opportunities whenever they arise, and address the concerns and hope of the citizens with concrete actions. My fellow citizens, over the past several years, Taiwan has weathered a global pandemic and faced global challenges, both political and economic, arising from the US-China trade war and Russia’s invasion of Ukraine. Through it all, Taiwan has persevered; we have continued to develop our economy, bolster our national strength, and raise our international profile while garnering more support – all unprecedented achievements. This is all because Taiwan’s fate has never been decided by the external environment, but by the unity of the Taiwanese people and the resolve to never give up. A one-of-a-kind global situation is creating new strategic opportunities for our one-of-a-kind Taiwanese people, bringing new hope. Taiwan’s foundation is solid; its strength is great. So as long as everyone remains steadfast in their convictions, is willing to work hand in hand, stands firm amidst uncertainty, and looks for ways to win within changing circumstances, Taiwan is certain to prevail in the test of our time yet again, for I am confident that there are no difficulties that Taiwan cannot overcome. Thank you.

    MIL OSI Asia Pacific News

  • MIL-OSI United Kingdom: CMA reaches settlement with banks in competition case

    Source: United Kingdom – Executive Government & Departments

    Banks agree to pay fines for past exchanges of sensitive information about UK government bonds.

    • CMA and 4 banks agree to settle separate cases related to UK government bonds, known as gilts
    • Citi, HSBC, Morgan Stanley and Royal Bank of Canada will pay fines totalling over £100 million – Deutsche Bank has immunity for reporting its conduct which began in 2009 and ended in 2013
    • Individual traders at each of the banks took part in private one-to-one Bloomberg chatrooms in which they shared sensitive information relating to buying and selling gilts on specific dates

    Gilts are an important type of UK government bond that help to finance public spending. Investors in gilts lend money to the UK government and in return receive a steady and stable stream of cash interest payments.

    Healthy competition drives investment, innovation and growth, and it is important that competitors decide their price and strategies independently in order to ensure effective competition in a market. 

    Following an investigation by the Competition and Markets Authority (CMA), the banks have agreed to pay fines for specific instances in which traders shared competitively sensitive information about aspects of the pricing of UK bonds. The sharing of information occurred in one-to-one exchanges between traders about the buying and selling of gilts and gilt asset swaps.

    This conduct took place on various dates between 2009-2013, with the last exchanges occurring in 2010 for HSBC, 2012 for Morgan Stanley, and 2013 for each of Citi, Deutsche Bank and Royal Bank of Canada. Since then, the banks have implemented extensive compliance measures to ensure this behaviour does not happen again.

    Juliette Enser, Executive Director of Competition Enforcement at the CMA, said:

    Following constructive engagement between the banks and the CMA, we are pleased that we have been able to settle these 5 cases involving the past sharing of competitively sensitive information about pricing.

    The financial services sector is an integral part of the UK economy, contributing billions every year, and it’s essential that it functions effectively. Only through healthy and competitive markets can we ensure businesses and investors have confidence to invest and grow – for the benefit of all in the UK.

    The fines imposed today reflect the CMA’s commitment to dealing with competition law breaches and deterring anti-competitive conduct. The fines would have been substantially higher had the banks not already taken unusually extensive steps to make sure that this doesn’t happen again.

    Unlawful exchanges in one-to-one chatrooms

    Each of the exchanges took place in separate bilateral online Bloomberg chatrooms between individual traders at 2 banks [see Figure 1] and included information relevant to the pricing of UK government bonds – specifically, gilts and gilt asset swaps.

    In particular, each one-to-one exchange of information took place in relation to one or more of the following: firstly, the sale of gilts by the UK Debt Management Office via auctions on behalf of HM Treasury, secondly the subsequent buying and selling, i.e. trading, of gilts and gilt asset swaps, and thirdly the selling of gilts to the Bank of England – known as ‘buy back’. Not all banks were involved in unlawful exchanges in all 3 contexts.

    Figure 1 – Parties to the separate one-to-one exchanges

    Consequences

    Four banks – Citi, HSBC, Morgan Stanley and Royal Bank of Canada – have settled and agreed to pay fines totalling £104,460,000.

    Deutsche Bank is exempt from a financial penalty as it alerted the CMA to its participation in the chats via the authority’s leniency policy. Citi applied for leniency during the CMA’s investigation and as a result has received a reduced fine.

    In agreeing to settle with the CMA, the banks have agreed to pay these fines, bringing the investigation to a close.

    The fines for each bank are:

    • Citi: £17,160,000 – this includes a 35% leniency discount and a 20% reduction for settling in advance of the CMA issuing its Statement of Objections
    • HSBC: £23,400,000 – this includes a 10% reduction for settling after the CMA issued its Statement of Objections
    • Morgan Stanley: £29,700,000 – this includes a 10% reduction for settling after the CMA issued its Statement of Objections
    • Royal Bank of Canada: £34,200,000 – this includes a 10% reduction for settling after the CMA issued its Statement of Objections

    The fines take into account the length of time that has passed since the end of the infringements and the extensive compliance measures that the banks have implemented since then – some of which were in place before the start of the CMA’s investigation.

    The firms have until 22 April 2025 to pay their fines.

    More information on this investigation and the CMA’s update is available on the UK government bonds: suspected anti-competitive arrangements case page.

    Notes to editors

    1. A gilt is a UK government bond issued by HM Treasury through the UK Debt Management Office (‘DMO’). This case concerned conventional gilts only, i.e. gilts that pay a fixed rate of interest to the holder. Gilts are commonly issued through auction by the DMO in the UK to gilt-edged market makers (‘GEMMs’) and are actively traded in the financial market following issuance. All 5 banks investigated by the CMA are GEMMs.
    2. In 2009, in response to the financial crisis, the Bank of England adopted a quantitative easing (‘QE’) policy, which involved the Bank of England buying assets – the majority of which were gilts. The Bank of England therefore conducted regular buy-back auctions at certain points during the relevant period.
    3. The DMO, the Bank of England and HM Treasury were not under investigation. The DMO, on behalf of HM Treasury, and the Bank of England have assisted the CMA with the investigation by responding to information requests.
    4. The CMA has issued five separate bilateral infringement decisions. Decision documents are addressed to the following entities: Citigroup Global Markets Limited and its ultimate parent company Citigroup Inc. (together ‘Citi’), Deutsche Bank Aktiengesellschaft (‘Deutsche Bank’), HSBC Bank Plc and its ultimate parent company HSBC Holdings Plc (together ‘HSBC’), Morgan Stanley & Co. International Plc and its ultimate parent company Morgan Stanley (together ‘Morgan Stanley’), and RBC Europe Limited and its ultimate parent company Royal Bank of Canada (together ‘Royal Bank of Canada’).
    5. In each decision, the CMA has found a single and repeated ‘by object’ infringement (i.e. that the conduct had, as its object, the restriction or distortion of competition within the UK). The CMA has not made any finding as to whether the conduct at issue had the effect of preventing, restricting or distorting competition.
    6. The information exchanges took place between: – Citi and Deutsche Bank: on 12 specific dates between July 2012 and January 2013 – Citi and Morgan Stanley: on 3 specific dates between December 2011 and February 2012 – Deutsche Bank and HSBC: on 12 specific dates between October 2009 and June 2010 – Deutsche Bank and Morgan Stanley: on 8 specific dates between October 2009 and June 2011 – Deutsche Bank and Royal Bank of Canada: on 41 specific dates between November 2009 and April 2013
    7. In the case of 4 of the banks (Citi, Deutsche Bank, HSBC and Morgan Stanley) the information was exchanged by a single trader based in the UK. In the case of the Royal Bank of Canada, the information was exchanged on different occasions by 2 traders based in the UK. None of the traders remain employed by the bank they worked for at the time.
    8. Bloomberg chatrooms are a means of electronic communication through which participants can exchange messages. Although the information exchanged through certain Bloomberg chatrooms formed part of the CMA’s investigation, Bloomberg was not under investigation.
    9. All banks were involved in unlawful exchanges relating to trading. In addition, Citi, Deutsche Bank, HSBC and Morgan Stanley were involved in unlawful exchanges relating to auctions; and Deutsche Bank, Citi and Morgan Stanley were involved in unlawful exchanges relating to buy-back auctions. Deutsche Bank and RBC also coordinated their strategies for trading gilts via brokers on a limited number of occasions.
    10. Under the CMA’s leniency policy, a business that has been involved in cartel activity may be granted immunity from penalties or a reduction in penalty in return for reporting the cartel activity and assisting the CMA with its investigation.
    11. A party under investigation by the CMA may enter into a settlement agreement if it is prepared to admit that it has breached competition law, is willing to pay a fine and agree to a streamlined administrative procedure for the remainder of the investigation. Settlement can take place before or after the CMA issues a Statement of Objections, which sets out the CMA’s provisional findings of fact and its legal and economic assessment of them.
    12. The CMA and the Financial Conduct Authority have concurrent functions to enforce competition law in the financial services sector. It was agreed that the CMA would exercise those functions in relation to this investigation.
    13. For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.

    Updates to this page

    Published 21 February 2025

    MIL OSI United Kingdom

  • MIL-OSI: Peyto Delivers Record Reserves Results in 2024

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Peyto Exploration & Development Corp. (TSX: PEY) (“Peyto” or the “Company”) is pleased to present the results and in-depth analysis of its independent reserve report effective December 31, 2024. The evaluation encompassed 100% of Peyto’s reserves and was conducted by GLJ Ltd. (“GLJ”). The year 2024 marks the Company’s 26th year of successful reserves development.

    Peyto’s 2024 capital program marks the first full year of drilling high-quality inventory acquired in the Repsol Canada Limited Partnership transaction. Combined with drilling of high-graded locations on Peyto’s legacy assets, the Company delivered several new reserves records in 2024.

    2024 HIGHLIGHTS

    • The Company’s 2024 drilling program developed a record 457 BCFe1 (76.2 MMboe2) of new Proved Developed Producing (“PDP”) reserves at a Finding, Development and Acquisition (“FD&A”3) cost of $1.00/Mcfe ($6.01/boe). The Company’s continuous focus on finding and developing reserves at low costs has generated a five-year average PDP FD&A of $1.13/Mcfe.
    • The Peyto team delivered record production in December of 2024 of 136 Mboe/d (721 MMcf/d gas, 15,708 bbl/d NGLs), generating an exit rate capital efficiency4 of $9,700/boe/d, one of the best in Company history.
    • The Company’s systematic hedging program and market diversification strategy, along with Peyto’s low operating cost structure, were able to deliver an average field netback5 of $3.26/Mcfe ($19.59/boe). This resulted in a 3.3 times recycle ratio6 (2.1 times on an unhedged basis), the highest on record over the last 20 years, despite the lowest annual AECO natural gas price during the same period.     
    • The 2024 drilling program produced a record average PDP reserves-per-well booking in the Company’s history at 6.0 Bcfe, up from 4.3 Bcfe in 2023.
    • Peyto invested $458 million in capital7 in 2024, using 64% of funds from operations8 (“FFO”), while returning a record $258 million in dividends to shareholders.
    • In 2024, the Company drilled 58 wells previously booked as proved and probable undeveloped reserves. Peyto converted these locations to developed reserves at a record low finding cost of $0.66/Mcfe, 26% lower than the 2023 reserve report assignments. Peyto’s history of converting reserves at or below booked values provides confidence in the remaining future undeveloped reserves and the associated capital requirements.
    • The before tax, 10% discounted, net present value9 (“BT NPV10“) of the Company’s reserves are $4.9 billion, $7.1 billion, and $9.6 billion on a PDP, Total Proved (“TP”), and Total Proved plus Probable (“P+P”) basis, respectively. The Peyto capital program generated a 16% increase in PDP reserves value over last year, despite the decrease in forecasted prices used by GLJ in this year’s report.  
    • Peyto replaced 166%, 199% and 239% of annual production with new PDP, TP, and P+P reserves, respectively.
    • Peyto delivered reserves growth across all categories in 2024 from its successful drilling program. PDP reserves increased 7% to 474 MMboe, TP reserves increased 5% to 876 MMboe, and P+P reserves increased 5% to 1,367 MMboe. On a per share basis, reserves increased 5%, 3%, and 3% for PDP, TP, and P+P, respectively. Since inception, the Company has generated a 20% compound annual growth rate (“CAGR”10) on a PDP reserves per share basis.
    • FD&A costs, including the change in Future Development Capital (“FDC”), for TP and P+P reserve categories were $0.90/Mcfe ($5.38/boe) and $0.61/Mcfe ($3.67/boe), which represents a 37% and a 50% reduction from 2023, respectively.
    • The Reserve Life Index11 (“RLI”) for the PDP remains unchanged at 10 years despite an 11% increase in year-over-year fourth quarter production. TP and P+P reserves RLI remain strong at 18 and 28 years, respectively, supported by the Company’s industry leading cash costs. Peyto’s PDP reserve life is one of the longest in the industry.
    • Total Company reserve values (BT NPV10) for PDP, TP, and P+P reserves on a debt adjusted basis implies $17.81/share, $28.79/share, and $41.52/share, respectively, using the 3 Consultant Average (“3CA”) price forecast (GLJ, McDaniel, and Sproule).

    2025 CAPITAL BUDGET

    The Board of Directors of Peyto has approved a 2025 capital budget of $450–$500 million. The capital program is projected to add between 43,000 and 48,000 boe/d of new production by year end and more than offset the Company’s estimated 27% decline in base production. The Company expects to utilize four drilling rigs to drill 70–80 net horizontal wells, representing approximately 80% of the 2025 budget. The remaining capital is planned for optimization and maintenance projects for Peyto’s 15 operating gas plants and extensive gathering system infrastructure.  

    Peyto’s active hedging program has secured prices for approximately 473 MMcf/d of natural gas for 2025 at an average price over $4/Mcf, and when combined with the Company’s liquids hedges, provides revenue certainty of over $800 million, reflecting one of the highest levels of price protection in the industry. This revenue more than covers the expected capital program and dividends to shareholders for the year. Peyto’s strong hedge book, market diversification and industry leading cash costs supports the continued development of high-quality inventory despite current low AECO natural gas prices.

    While the threat of U.S. tariffs continues to weigh on the industry and the country, management believes Peyto’s commodity hedges and natural gas diversification contracts will not be directly impacted. The majority of Peyto’s market diversification arrangements that have US hub pricing exposure are physically delivered in Canada and not the US.   Additionally, most of the supplies used in the Company’s operations are sourced domestically, which should also limit any effects from counter tariffs that might be imposed by the Government of Canada. As always, Peyto will remain flexible and responsive to the business environment as it unfolds through 2025.

    HISTORICAL PERSPECTIVE

    Over the past 26 years, Peyto has acquired, explored and discovered 11.2 TCFe of Alberta Deep Basin natural gas and associated liquids, of which 59% has now been developed12.

    Peyto 26-year cumulative production*: 2.97 TCFe
    Total Proved + Probable Developed reserves* 3.61 TCFe
    Total Developed natural gas and liquids*: 6.57 TCFe
    Total Proved + Probable Undeveloped reserves*: 4.60 TCFe
    Total acquired, explored for and discovered*:
    * As at December 31, 2024
    11.17 TCFe

    Each year the Company invests in the discovery of new reserves and the efficient and profitable development of existing reserves into high netback natural gas and NGL production for the purpose of generating the maximum possible return on capital for its shareholders.

    In those 26 years, a total of $8.9 billion was invested in the Canadian economy in the acquisition and development of 6.6 TCFe of total developed natural gas and associated liquids at an average cost of $1.34/Mcfe, while a weighted average field netback3 of $3.45/Mcfe delivered $9.2 billion in FFO, $3.1 billion in dividends and distributions to shareholders, and resulted in a cumulative recycle ratio4 of 2.6 times. Royalty payments made to Alberta during this time have totaled over $1.3 billion.

    Based on the December 31, 2024 evaluation, the debt adjusted, Net Present Value of the Company’s remaining Total Proved plus Probable reserves (“P+P NPV”, 10% discount, less debt) was $42/share, comprised of $24/share of developed reserves and $18/share of undeveloped reserves. This includes a provision for all abandonment liability for wells, well sites, pipelines, and facilities for which Peyto has ownership and responsibility.

    2024 RESERVES REPORT AND ANALYSIS

    The following table summarizes Peyto’s reserves and the discounted Net Present Value of future cash flows, before income tax, using the 3 Consultant Average price forecast (GLJ, McDaniel, and Sproule), at January 1, 2025.

              Before Tax Net Present Value ($millions)
              Discounted at
    Reserve Category Gas
    (BCF)
    Oil &
    NGL
    (mstb)
    BCFe
    (6:1)
    MMboe
    (6:1)
    0% 5% 8% 10%
    Proved Developed Producing 2,435 67,968 2,843 474 $10,183 $6,693 $5,471 $4,879
    Proved Non-producing 49 1,049 55 9 $183 $110 $85 $73
    Proved Undeveloped 2,029 54,594 2,357 393 $6,814 $3,548 $2,560 $2,099
    Total Proved 4,513 123,611 5,255 876 $17,179 $10,351 $8,116 $7,051
    Probable 2,552 65,826 2,947 491 $11,705 $4,793 $3,185 $2,519
    Total Proved + Probable 7,065 189,437 8,202 1,367 $28,885 $15,143 $11,302 $9,569

    Note: Based on the GLJ report effective December 31, 2024. Tables may not add due to rounding.

    ANALYSIS FOR PEYTO SHAREHOLDERS

    One of the guiding principles at Peyto is “to tell you the business facts that we would want to know if our positions were reversed”. Therefore, each year Peyto provides an extensive analysis of the independent reserve evaluation that goes far beyond industry norms to answer the most important questions for shareholders:

    1. Base Reserves – How did the “base reserves” that were on production at the time of the last reserve report perform during the year, and how did any change in commodity price forecast affect their value?
    2. Value Creation – How much value did the 2024 capital investments create, both in current producing reserves and in undeveloped potential? Has the Peyto team earned the right to continue investing shareholders’ capital?
    3. Growth and Income – Are the projected cash flows capable of funding the growing number of undeveloped opportunities and a sustainable dividend stream to shareholders, without sacrificing Peyto’s financial flexibility or allowing for the timely repayment of any debt used?
    4. Risk Assessment – What are the risks associated with the assessment of Peyto’s reserves and the risk of recovering future cashflows from the forecast production streams?

    1.   Base Reserves

    Peyto’s existing PDP reserves at the start of 2024 (the base reserves) were evaluated and adjusted for 2024 production as well as any technical or economic revisions resulting from the additional twelve months of production and commodity price data. As part of GLJ’s independent engineering analysis, all base 2,968 producing reserve entities (zones/wells) were evaluated. These base producing wells and zones represent a total gross Estimated Ultimate Recoverable (“EUR”) volume of 9.1TCF (remaining PDP+PA reserves plus all cumulative production to date), which is 2% higher than the prior year estimate. As a result, Peyto is pleased to report that its total base reserves continue to meet expectations, which provides confidence in the prediction of future recoveries.

    The commodity price forecast used by GLJ in this year’s evaluation is lower than last year for both natural gas and natural gas liquids, which has had the effect of decreasing the Net Present Value of all reserve categories. For example, 2023’s PDP reserves decreased $268 million (10% of the debt adjusted 2023 NPV10) due to the difference in commodity price forecasts. Despite the decrease in value due to lower prices, record PDP additions from Peyto’s 2024 drilling program resulted in a 16% increase in the PDP BT NPV10 over 2023. The 3CA price forecast used in the evaluation is available on GLJ’s website at www.gljpc.com

    For 2025, Peyto estimates a total base decline rate of approximately 27% from the monthly average production in December 2024 of 136 Mboe/d. The historical base decline rates and capital programs are shown in the following table:

        2016   2017   2018   2019   2020   2021   2022   2023   2024 2025F
    Base Decline (%/yr)*   40%   37%   35%   29%   23%   27%   30%   29%   27%** 27%
    Capital Expenditures ($MM)   $469   $521   $232   $206   $236   $365   $529   $413   $458 $475

    *The base decline represents the aggregate annual decline of all wells on production at the end of the previous year.
    **2024 base decline adjusted to account for voluntarily shut-in volumes associated with uneconomic ethane production as well as the shut-down of sour gas production as Edson Gas Plant.

    2.   Value Creation/Reconciliation

    During 2024, Peyto invested a total of $458 million in organic activity to evaluate exploration lands, expand its pipeline gathering network, and drill, complete and tie-in 77 gross (75.3 net) wells. In keeping with Peyto’s strategy of maximizing shareholder returns, an evaluation of the economic outcome of this investment activity is necessary to determine, on a go-forward basis, the best use of shareholders’ capital. Not only does this look back analysis give shareholders a detailed report card on the capital that was invested, but it also helps illustrate the potential returns that can be generated from similar undeveloped future opportunities.

    Exploration, Development, and Acquisition Activity

    Of the total capital invested in exploration and development activities (excluding acquisitions) in 2024, approximately 1% was spent acquiring lands and seismic, 16% on pipeline and facility projects, and the remaining 83% was spent on drilling, completing, and connecting existing and new reserves. This capital program delivered an incremental 47,300 boe/d, after adjustments for base production backout and voluntary shut-ins, generating a capital efficiency of $9,700/boe/d. Of the 77 gross wells drilled, 58 or 75%, were previously identified as undeveloped reserves in last year’s reserve report (47 Proved, 11 Probable locations). The remaining 19 wells were new locations developed in the year, on both existing and acquired lands, and were not recognized in last year’s report.

    The undeveloped reserves at year-end 2023 originally booked to the 58 drilled locations, referred to above, totaled 305 BCFe (5.3 BCFe/well) of Proved plus Probable Undeveloped reserves for a forecast capital investment of $270 million ($0.89/Mcfe). In actuality, 441 BCFe (7.6 BCFe/well) were developed for $289 million of capital on these wells during 2024, resulting in a conversion cost of $0.66/Mcfe or a 26% improvement over what was previously forecast. Peyto continued to increase average horizonal lengths through 2024 which had the result of increasing total capital spent but also significantly improving year-over-year finding costs with greater reserve recoveries. Additionally, the results generated from both Peyto legacy lands and Repsol acquired lands have outperformed expectations throughout the year.

    The following table illustrates the Company’s historical performance in converting predicted future undeveloped locations into producing wells and demonstrates that, other than the rapid inflation experienced in 2022, Peyto has typically converted more reserves at a lower cost than was forecast.

    Reserve
    Year
    Total
    Drills
    Booked
    Locations
    Converted
    Booked/
    Total
    Forecast Outcome Forecast
    Cost per
    Unit
    Actual Outcome Actual
    Cost per
    Unit
    Actual/
    Forecast
    Cost per
    Unit
      gross wells gross wells   BCFe Capex* $MM $/Mcfe BCFe Capex* $MM $/Mcfe  
    2015 140 103 74 % 307 $ 456 $ 1.49 348 $ 385 $ 1.11 -26 %
    2016 128 82 64 % 254 $ 297 $ 1.17 254 $ 246 $ 0.97 -17 %
    2017 142 97 68 % 298 $ 295 $ 0.99 321 $ 305 $ 0.95 -4 %
    2018 70 37 53 % 104 $ 115 $ 1.10 120 $ 118 $ 0.98 -11 %
    2019 61 39 64 % 129 $ 111 $ 0.86 123 $ 109 $ 0.88 +2 %
    2020 64 52 81 % 172 $ 158 $ 0.92 165 $ 135 $ 0.82 -11 %
    2021 95 61 64 % 221 $ 193 $ 0.87 227 $ 192 $ 0.84 -3 %
    2022 95 79 83 % 331 $ 268 $ 0.81 333 $ 320 $ 0.96 +19 %
    2023 72 44 61 % 171 $ 159 $ 0.93 236 $ 196 $ 0.83 -11 %
    2024 77 58 75 % 305 $ 270 $ 0.89 441 $ 289 $ 0.66 -26 %
    Total 944 652 69 % 2,292 $ 2,322 $ 1.01 2,568 $ 2,295 $ 0.89 -12 %

    *Capex represents only well related capital for drilling, completion, equipping and tie-in

    This annual analysis of reserves that are converted from undeveloped to developed provides confidence in the validity of the remaining future undeveloped reserves and the associated capital requirements. This helps Peyto predict future reserve recoveries and capital requirements and reduces the risk associated with valuing future undeveloped locations.

    Value Reconciliation

    In order to measure the success of all capital invested in 2024, it is necessary to quantify the total amount of value created during the year and compare that to the total amount of capital invested. Each year, Peyto runs last year’s reserve evaluation with this year’s price forecast to remove the change in value attributable to commodity prices. This approach isolates the value created by the Peyto team from the value created (or lost) by those changes outside of their control (ie. Commodity prices). Since capital investments can be funded from a combination of cash flow, debt and equity, it is necessary to know the change in debt and the change in shares outstanding to see if the change in value is truly accretive to shareholders.

    At year-end 2024, Peyto’s estimated net debt13 decreased by approximately 0.7% or $10 million from December 31, 2023, while the number of shares outstanding increased by 2%, due to the Company’s stock option program, to 197.8 million shares. In calculating the change in debt, the Company included all capital expenditures, and the total fixed and performance-based compensation paid out for the year. Although these estimates are believed to be accurate, they remain unaudited at this time and may be subject to change.

    Based on this reconciliation of changes in BT NPV0, the Peyto team was able to create $1.9 billion of PDP, $2.4 billion of TP, and $3.6 billion of P+P undiscounted reserve value, with $458 million of capital investment. The ratio of capital expenditures to value creation is what Peyto refers to as the NPV0 recycle ratio4, which is simply the undiscounted value addition, resulting from the capital program and acquisition, divided by the capital and acquisition investment. For 2024, the PDP NPV0 recycle ratio is 4.1, which means for each dollar invested, the Peyto team was able to create 4.1 new dollars of undiscounted PDP reserve value.

    The historic NPV0 recycle ratios are presented in the following table.

        2015   2016   2017   2018   2019   2020   2021   2022   2023  2024 10 yr
    Wt.
    Avg.
    Capital Investment ($MM)   $594   $469   $521   $232   206   $236   $365   $529   $1,112 $458
    NPV0Recycle Ratio                      
    Proved Developed Producing   2.3   2.9   2.3   4.6   1.8   3.5   5.2   3.6   2.0 4.1 3.0
    Total Proved   3.3   4.2   3.2   11.7   5.5   6.9   5.5   4.0   4.4 5.3 4.8
    Total Proved + Probable   5.0   7.3   4.0   15.1   9.2   6.5   11.5   3.8   7.8 7.9 7.2

    *NPV0(net present value) recycle ratio is calculated by dividing the undiscounted NPV of reserves added in the year by the total capital cost for the period (eg. 2024 Proved Developed Producing $1,857/$458) =4.1).

    3.   Growth and Income

    Over the past 22 years, Peyto has paid a total of $22.63/share to shareholders in the form of distributions and dividends. Peyto’s objective, as a dividend paying, growth-oriented corporation, is to profitably grow the resources which generate sustainable income (dividends) for shareholders. For income to be sustainable and grow, Peyto must profitably find and develop more reserves. Simply increasing production from the existing reserves will not make that income more sustainable. RLI, or a reserve to production ratio, provides a measure of this long-term sustainability.

    During 2024, the Company’s capital program was successful in replacing 166% of annual production with new PDP reserves, resulting in 7% growth. Fourth quarter production increased 11%, from 120 Mboe/d (623 MMcf/d gas, 16,175 bbl/d NGLs) to 133 Mboe/d (708 MMcf/d gas, 15,409 bbl/d NGLs). The change in both PDP reserves and fourth quarter production held the PDP RLI (ratio of the two) flat at 10 years. For comparative purposes, the TP and P+P RLI were 18 and 28 years, respectively. Management believes that the most meaningful method to evaluate the current reserve life is by dividing the PDP reserves by the actual fourth quarter annualized production. This way production is being compared to producing reserves as opposed to producing plus non-producing reserves.

    The following table highlights the Company’s historical RLI.

      2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
    Proved Developed Producing 7 7 7 9 9 9 9 9 10 10
    Total Proved 11 11 11 16 19 18 16 15 19 18
    Total Proved + Probable 17 18 18 25 29 27 25 24 30 28

    Future Undeveloped Opportunities

    Every year Peyto finds and develops new drilling inventory that GLJ reviews to create a forecast of future development activity. Their forecast is by no means a complete assessment of Peyto’s current opportunities, nor is Peyto content to just sit back and harvest these current opportunities. Each year the results from the drilling and acquisition activity spawn additional offsetting locations both on currently owned lands and lands Peyto does not yet own but attempts to acquire.

    As of December 31, 2024, the future drilling locations recognized in the reserve report totaled 1,604 gross (1,293 net). This is down slightly from the previous year of 1,616 (1,292 net) as a result of optimization of future locations. Of these future locations, 1,056 (66%) are categorized as Proven Undeveloped by the independent reserve evaluators, while 548 (34%) are Probable Undeveloped locations. The net reserves associated with the undeveloped locations (not including existing uphole zones) totals 4.6 TCFe (3.6 BCFe/well) consisting of 3.96 TCF of natural gas and 106 MMbbls of NGLs, while the capital required to develop them is estimated at $5.7 billion or $1.23/Mcfe. This development is forecast to create Before Tax Net Present Value of $4.0 billion (at 10% discount rate, inclusive of profit after capital recovery and future abandonment liability) or $18 per share (debt adjusted) of incremental value at the 3CA commodity price forecast.

    The undiscounted forecast for Net Operating Income for the TP and P+P reserves over the future development capital schedule, as contained in the evaluator’s report, totals $8.9 billion and $15.8 billion, respectively, more than sufficient to fund the future development capital shown in the table below, ensuring those reserve additions are accretive to shareholders.

      Future Development Capital
      TP Reserves P+P Reserves
    Year Undisc., ($Millions) Undisc., ($Millions)
    2025 493 496
    2026 483 498
    2027 423 559
    2028 533 602
    2029 575 603
    2030 542 598
    2031 338 597
    2032 601
    Thereafter 1,154
    Total 3,386 5,707

    4.   Risk Assessment

    Effectively 100% of Peyto’s natural gas and natural gas liquid reserves exist in low permeability (tight), sandstone reservoirs in the Alberta Deep Basin. In almost all cases, the volumetric capacity of these sandstone reservoirs can be determined using traditional geological and reservoir engineering methods, which, when complimented by production performance data, increases the certainty of the reserve estimates. In the majority of Peyto’s core areas, continuous drilling activity has further refined the geologic and geometric definition of these reservoirs to a higher level of certainty.

    In addition, these Deep Basin sandstone reservoirs do not contain mobile water, nor are they supported by active aquifers. Mobile water traditionally increases the risk associated with reservoir recovery by impeding the flow of hydrocarbons through the reservoir and up the wellbore. Water production, separation and disposal processes also increase operating costs which shortens the economic life of producing wells, further contributing to reduced recovery. As many of these traditional reserves determination and recovery risks are not present in Peyto’s Deep Basin reservoirs, Management has a higher level of confidence in its reserves and their ultimate recovery.

    Peyto’s high operating margins have meant that forecasts of net operating income are less affected by commodity price volatility than in most traditional reserve evaluations. As a result, the predicted economic life of Peyto’s producing wells is less sensitive to changes in commodity prices. These high operating margins are achieved through the Company’s high level of ownership and control of all levels of production operations, through a concentrated geographic asset base, and by striving to be the lowest cost producer in the industry.

    Peyto attempts to further reduce the risk of predicted operating incomes with an active market diversification and hedging program that is designed, over time, to smooth out the volatility in both Alberta and US natural gas markets through a series of frequent transactions which is like “dollar cost averaging” the future gas price.

    Finally, Peyto is the operator of over 96% of its producing wells, which fits with the Company’s own and control strategy. As of December 31, 2024, Peyto owned a total of 2,819 net wells of which over 90% are on production today and most are expected to produce for decades to come. Despite the Company’s very low non-producing well count, Peyto has an active well retirement program where 14 net wells were abandoned in 2024.   For perspective, the current existing developed reserves have a forecast value of $5.6 billion (NPV10 of the PDP + PA and PDNP + PA), while the cost to abandon and reclaim all wells, well sites, pipelines, and facilities is estimated at $80 million using the same 10% discount rate for future costs. Peyto’s future abandonment and reclamation costs are substantially within the province of Alberta and are estimated in a manner that is consistent with Alberta Energy Regulator (“AER”) Directive 11 and other Alberta-based exploration and production companies. Peyto plans to spend approximately $10 million on abandonment and reclamation activities in 2025 which exceeds the mandatory spending requirements as set out by the AER for the period.  

    PERFORMANCE RATIOS

    The following table highlights annual performance ratios for the last decade. These can be used for comparative purposes, but it is cautioned that on their own they do not measure investment success.

        2024     2023     2022     2021     2020     2019     2018     2017     2016     2015  
    Proved Developed Producing                    
    FD&A ($/Mcfe)   $1.00     $1.21     $1.41     $0.97     $1.06     $1.55     $1.18     $1.36     $1.44     $1.64  
    RLI (yrs)   10     10     9     9     9     9     9     7     7     7  
    Recycle Ratio   3.3     2.9     2.8     2.8     1.5     1.4     2.3     2.1     1.8     2.0  
    Reserve Replacement   166 %   400 %   165 %   188 %   127 %   75 %   98 %   171 %   153 %   193 %
    Total Proved                    
    FD&A including the change in FDC ($/Mcfe)   $0.90     $1.43     $1.75     $1.10     $0.20     $1.41     $1.21     $1.39     $1.01     $0.72  
    RLI (yrs)   18     19     15     16     18     19     16     11     11     11  
    Recycle Ratio   3.6     2.5     2.3     2.4     8.0     1.5     2.2     2.0     2.6     4.5  
    Reserve Replacement   199 %   727 %   159 %   194 %   132 %   137 %   294 %   225 %   183 %   188 %
    Future Development Capital ($ millions)   $3,386     $3,352     $2,081     $1,979     $1,917     $2,107     $1,971     $1,488     $1,305     $1,381  
    Total Proved + Probable                    
    FD&A including the change in FDC ($/Mcfe)   $0.61     $1.22     $2.03     $1.09     ($0.01 )   $1.25     1.02     $1.49     $0.62     $0.54  
    RLI (yrs)   28     30     24     25     27     29     25     18     18     17  
    Recycle Ratio   5.3     2.9     1.9     2.5     N/A     1.7     2.6     1.9     4.2     6.1  
    Reserve Replacement   239 %   1077 %   167 %   308 %   167 %   140 %   342 %   279 %   283 %   287 %
    Future Development Capital ($millions)   $5,707     $5,764     $3,855     $3,612     $3,308     $3,547     $3,445     $2,978     $2,563     $2,657  

    See Non-GAAP Financial Ratios in the Advisories section of this news release for details on the calculation of the above metrics.

    RESERVES COMMITTEE

    Peyto has a reserves committee, comprised of a majority of independent board members, that reviews the qualifications and appointment of the independent reserve evaluators. The committee also reviews the procedures for providing information to the evaluators. All booked reserves are based upon annual evaluations by the independent qualified reserve evaluators conducted in accordance with the COGE (Canadian Oil and Gas Evaluation) Handbook and National Instrument 51-101. The evaluations are conducted using all available geological and engineering data. The reserves committee has reviewed the reserves information and approved the reserve report.

    GENERAL

    A complete filing of the Statement of Reserves (form 51-101F1), Report on Reserves (form 51-101F2), and Report of Management and Directors on Oil and Gas Disclosure (form 51-101F3) will be available in the Annual Information Form to be filed by the end of March 2025. Shareholders are encouraged to actively visit Peyto’s website located at www.peyto.com. For further information, please contact Jean-Paul Lachance, President and Chief Executive Officer of Peyto at (403) 261-6081.

    ADVISORIES

    Unaudited Financial Information

    Certain financial and operating information included in this news release including, without limitation, exploration and development expenditures, acquisitions, field netbacks, funds from operations, net debt, FD&A costs, Finding & Development costs excluding acquisitions, acquisition costs, and recycle ratio, are based on estimated unaudited financial results for the year ended December 31, 2024, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2024 and changes could be material.

    Information Regarding Disclosure on Oil and Gas Reserves

    Some values set forth in the tables above may not add due to rounding. It should not be assumed that the estimates of future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.

    Forward-Looking Information

    This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: management’s assessment of Peyto’s future plans and operations, including the 2025 capital expenditure program, the volumes and estimated value of Peyto’s reserves, the life of Peyto’s reserves, production estimates, project economics including NPV, netback and recycle ratio, the ability to enhance value of reserves for shareholders and ensure the reserves generate the maximum possible return; management’s belief that Peyto’s commodity hedges and the majority of the Company’s natural gas diversification contracts will not be impacted directly by potential tariffs imposed by the U.S.; and management’s assessment of limited impact from counter tariffs that might be imposed by Canada on U.S. imports.   Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Peyto which have been used to develop such statements and information, but which may prove to be incorrect. Although Peyto believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking information and statements because Peyto can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, the impact of increasing competition, the timely receipt of any required regulatory approvals, the ability of Peyto to obtain qualified staff, equipment and services in a timely and cost efficient manner, drilling results, field production rates and decline rates, the ability to replace and expand reserves through development and exploration, future commodity prices, currency, exchange and interest rates, regulatory framework regarding royalties, taxes, tariffs and environmental matters and the ability of Peyto to successfully market its oil and natural gas products. By their nature, forward-looking information and statements are subject to numerous risks and uncertainties, some of which are beyond these parties’ control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Peyto’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information and statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive therefrom. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Peyto does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

    This news release contains information, including in respect of Peyto’s 2025 capital program, which may constitute future oriented financial information or a financial outlook. Such information was approved by the Board of Directors of Peyto on February 20, 2025, and such information is included herein to provide readers with an understanding of the Company’s anticipated capital expenditures for 2025. Readers are cautioned that the information may not be appropriate for other purposes.

    Barrels of Oil Equivalent
    Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

    Drilling Locations
    This news release discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the independent engineering evaluation of Peyto’s oil, NGLs and natural gas interests prepared by GLJ dated February 20, 2025 and effective December 31, 2024 (the “Peyto Report”). Unbooked locations are internal estimates based on prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves.   Unbooked locations have been identified by management as an estimation of Peyto’s multi‐year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Peyto will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The drilling locations on which Peyto actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, some of the other unbooked drilling locations are further away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations, and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production.

    Non-GAAP and Other Financial Measures

    Throughout this news release, Peyto employs certain specified financial measures to analyze financial and operating performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. Such metrics have been included by Peyto to give readers additional measures to evaluate the Peyto’s performance; however, such measures are not reliable indicators of the future performance of Peyto and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon.

    Non-GAAP Financial Measures

    Funds from Operations
    “Funds from operations” is a non-GAAP measure which represents cash flows from operating activities before changes in non-cash operating working capital and provision for future performance-based compensation. Management considers funds from operations and per share calculations of funds from operations to be key measures as they demonstrate the Company’s ability to generate the cash necessary to pay dividends, repay debt and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds from operations provides a useful measure of Peyto’s ability to generate cash that is not subject to short-term movements in operating working capital. The most directly comparable GAAP measure is cash flows from operating activities.

    Capital Expenditures
    Peyto uses the term capital expenditures as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures, and such spending is compared to the Company’s annual budgeted capital expenditures. The most directly comparable GAAP measure for total capital expenditures is cash flow used in investing activities.

    Net Debt
    “Net debt” is a non-GAAP financial measure that is the sum of long-term debt and working capital excluding the current financial derivative instruments and current portion of lease obligations. It is used by management to analyze the financial position and leverage of the Company. Net debt is reconciled to long-term debt which is the most directly comparable GAAP measure.

    Non-GAAP Financial Ratios

    Netback per MCFE
    “Netback” is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes “field netback per Mcfe” as commodity sales from production, plus net third party sales, if any, plus other income, less royalties, operating, and transportation expense divided by production.

    Finding, Development and Acquisition Costs
    FD&A (finding, development and acquisition) costs are used as a measure of capital efficiency and are calculated by dividing the capital costs for the period, plus acquisition costs and including the change in undiscounted FDC, by the change in the reserves, incorporating revisions and production, for the same period (eg. 2024 Total Proved ($458MM+$0MM+$33MM)/( 875.9Mboe-830.5Mboe+45.8Mboe) = $5.38/boe or $0.90/Mcfe).

    Finding and Development Costs
    F&D (finding and development) costs are used as a measure of capital efficiency and are calculated by dividing the capital costs for the period, including the change in undiscounted FDC, by the change in the reserves, incorporating revisions and production, for the same period.

    Reserve Life Index
    The RLI is calculated by dividing the reserves (in boes) in each category by the annualized Q4 average production rate in boe/year (eg. 2024 Proved Developed Producing 473,834Mboe/(133Mboe/d x366) =9.7). Peyto believes that the most accurate way to evaluate the current reserve life is by dividing the proved developed producing reserves by the annualized actual fourth quarter average production. In Peyto’s opinion, for comparative purposes, the proved developed producing reserve life provides the best measure of sustainability.

    NPV0Recycle Ratio
    The NPV0Recycle Ratio is the ratio of capital expenditures to value creation, which is simply the undiscounted value addition, resulting from the capital program and acquisition, divided by the capital and acquisition investment.

    Recycle Ratio
    The Recycle Ratio is calculated by dividing the field netback per boe, by the FD&A costs for the period (eg. 2024 Proved Developed Producing $19.59/boe/$6.01/boe=3.3). The recycle ratio compares the netback from existing reserves to the cost of finding new reserves and may not accurately indicate investment success unless the replacement reserves are of equivalent quality as the produced reserves.

    Reserve Replacement Ratio
    The reserve replacement ratio is determined by dividing the yearly change in reserves before production by the actual annual production for the year (eg. 2024 Total Proved (875.9Mboe-830.5Mboe+45.8Mboe )/45.8Mboe =199%).

    Compound Annual Growth Rate
    The compound annual growth rate (CAGR) is the annualized average rate of PDP reserves growth from 1998 to 2024, assuming growth takes place at an exponentially compounded rate. 

    Capital Efficiency
    Capital Efficiency refers to how efficiently the Company utilizes its capital investment to generate production. It is calculated by dividing the capital costs for the period, plus acquisition costs, by December production volumes added from the 2024 capital program (eg. 2024 capital efficiency ($458MM)/( 47,300 boe/d) = $9,700 per boe/d).

    The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
    ___________________________________

    1BCF and TCF refers to billions and trillions of cubic feet, respectively
    2 MMboe refers to million barrels of oil equivalent
    3F&D and FD&A are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release
    4Capital efficiency is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    5Field netback operations is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    6Recycle ratio and NPV Recycle Ratio are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release
    7Capital expenditures is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release
    8Funds from operations is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release
    9It should not be assumed that the estimates of future net revenues (NPVs) represent the fair market value of the reserves
    10Compound annual growth rate (CAGR) is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    11RLI is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    12Developed Reserves is Total Proved + Probable Developed Reserves and includes Proved + Probable Developed Producing reserves and Proved + Probable Developed Non-Producing reserves
    13Net debt is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release

    The MIL Network

  • MIL-OSI Canada: 105 new affordable homes coming to the Yukon

    This is a joint release between the Government of Yukon and Government of Canada.

    The governments of Canada and Yukon, along with the City of Whitehorse and Da Daghay Development Corporation (DDDC) announced more than $37 million in funding to support the construction of 105 new affordable homes in Whitehorse.

    The announcement was made by Minister of Housing, Infrastructure and Communities, Nathanial Erskine-Smith, alongside Member of Parliament for Yukon, Brendan Hanley,  Premier and Minister responsible for Yukon Housing Corporation, Ranj Pillai, Mayor of Whitehorse, Kirk Cameron and Chief Operating Officer for Da Daghay Development Corporation, Tiffany Eckert-Maret.

    Winter Crossing, located at 28 Olive May Way in Whitehorse, is the largest affordable housing development in the Yukon’s history. It will provide 105 new homes across seven buildings and provide affordable housing options to Yukoners. The seven buildings will have accessible units in each building, along with a mix of one and two-bedroom units. The building will be operated by the Da Daghay Development Corporation. Construction is expected to be complete in 2026. The building will be operated by the Da Daghay Development Corporation. Construction is expected to be complete in 2026.

    Funding announced today includes:

    • $33.1 million from the federal government through the Affordable Housing Fund (AHF), including a $7.8 million contribution and a $25.2 million loan
    • $500,000 from the Government of Yukon, through the Yukon Housing Corporation’s Municipal Matching Rental Construction Program
    • $2.3 million from the City of Whitehorse under the Housing Development Incentive Policy
    • $1.5 million in cash and land equity from the Da Dahgay Development Corporation

    This project also received $5 million through the northern carve-out under AHF, which was previously announced in 2021, and $5 million from the Government of Yukon announced in February 2024.

    Projects receiving funding through the $20 million portion of the carve-out administered by Yukon Housing Corporation, include:

    • Watson Lake supportive housing – $5.2 million for 10 units
    • Korbo replacement building (Dawson City) – $7 million for 34 units
    • Ryder apartments replacement (Whitehorse) – $6.5 million for 23 of 45 units
    • Whistle Bend (Whitehorse) – $1.2 million for 18 units
       

    Related information:

    Visit Canada.ca/housing for the most requested Government of Canada housing inf…

    To find out more about the National Housing Strategy, please visit www.placetoc…

    Government of Yukon invests $5 million towards affordable housing in Whitehorse…

    $40 million Northern Carve Out funding for housing in Yukon announced.

    MIL OSI Canada News

  • MIL-OSI Canada: Government of Yukon provides update on progress towards new minerals legislation

    Government of Yukon provides update on progress towards new minerals legislation
    zaburke

    The Government of Yukon is making significant progress in co-developing new minerals legislation with First Nations aimed at modernizing the territory’s regulatory framework and ensuring responsible resource development.

    The new legislation will create a balanced approach that safeguards the environment, respects Aboriginal rights and supports a strong, sustainable economy. By improving the regulatory system, the Government of Yukon seeks to provide greater clarity for industry while enhancing environmental protections and meaningful involvement of Yukon First Nations in decision-making processes.

    A Steering Committee, comprising representatives from the Government of Yukon, the Council of Yukon First Nations, Indigenous governments and groups, has been working diligently to advance a recommended legislative framework. Regular meetings have facilitated progress on key elements of the legislation.

    A framework agreement will mark a major milestone in the development of new minerals legislation, ensuring that it reflects the values and interests of all Yukoners. Industry representatives and environmental organizations will continue to be engage; they contribute valuable input and insights to the process.

    As the process advances, the government remains committed to ongoing engagement with stakeholders, including recent discussions at the Roundup Mining and Exploration Conference. The objective is to balance regulatory clarity with the flexibility needed to address project-specific circumstances.

    The Government of Yukon continues to work diligently to position the territory as a leader in responsible and sustainable mineral development. Further updates on the progress of the new legislation will be shared in the coming months. 
     

    MIL OSI Canada News

  • MIL-OSI Canada: Senior leadership appointment in the Government of Yukon public service

    Senior leadership appointment in the Government of Yukon public service
    zaburke

    Premier Ranj Pillai has made a senior leadership appointment. 

    Paul Moore’s appointment as interim Deputy Minister of Energy, Mines and Resources has been extended at pleasure for up to three months. The Energy, Mines and Resources portfolio will continue to be divided between the acting Deputy and interim Deputy Ministers.

    Moore will be responsible for Land Planning, Land Management, Agriculture, Energy, Geothermal and Petroleum Resources, Forest Management, Strategic Alliances, Policy, Human Resources, Communications, Finance and Information Management.

    Van der Meer will continue to be responsible for Mineral Resources, Yukon Geological Survey, Assessment and Abandoned Mines and Compliance, Monitoring and Inspection.  
     

    Backgrounder

    Paul Moore has many years of public service experience with municipal, First Nations and territorial governments including director of the Human Resource and Education for the Tr’ondëk Hwëch’in First Nation, and the chief administrative officer for the City of Dawson. He joined the Government of Yukon in 2008 as director of Community Affairs and then became assistant deputy minister of Community Development. He has served as the Deputy Minister for Community Services, Deputy Minister of Energy, Mines and Resources and most recently as the Public Service Commissioner. He holds a Bachelor of Arts from the University of Victoria and a Master of Arts in Conflict Analysis and Management from Royal Roads University.

    MIL OSI Canada News

  • MIL-OSI USA News: Press Briefing by Press Secretary Karoline Leavitt, Deputy Chief of Staff Stephen Miller, National Economic Council Director Kevin Hassett, and National Security Advisor Mike Waltz

    Source: The White House

    class=”has-text-align-left”>
    1:05 P.M. EST
     
         MS. LEAVITT:  Hello.  Good afternoon, everybody.  I brought some heavy hitters in here with me today. 
     
    Today marks one month of President Trump’s return to the Oval Office, and there is no denying this administration is off to a historic start.  The President has already signed 73 executive orders.  That is more than double the number signed by Joe Biden and more than quadruple the number signed by Barack Obama over the same period.
     
    These executive orders have ended burdensome regulations; sealed the border; unleashed our domestic energy sector; eliminated divisive DEI from our federal government; stopped the weaponization of government; cut waste, fraud, and abuse; reinstituted “America First” trade and foreign policies; and ultimately restored common sense. 
     
    The President also signed the Laken Riley Act into law, which ensures ICE will detain illegal aliens arrested or charged with theft or violence. 
     
    As of today, the Senate has already confirmed 18 Cabinet-level nominees, which is more than at this point under the Obama administration in 2009 and more than double the pace of the Biden administration in 2021. 
     
    And today, we expect Kash Patel to be confirmed as the next director of the FBI. 
     
    We are proud to announce that the president will host his first official Cabinet meeting here at the White House next Wednesday, February 26th. 
     
    In just four weeks, President Trump has already hosted the leaders of Israel, Japan, Jordan, and India.  And next Monday, the President will host France’s President, Emmanuel Macron, and on Thursday, the UK Prime Minister, Keir Starmer, will visit the White House as well. 
     
    As you all know, over the past month, the President has taken questions from the press — all of you — nearly every single day, sometimes on multiple different occasions in the same day, on any topic any of you wish to talk about. 
     
    President Trump set the tone on this approach immediately when he took more than 12 times the questions in his first few hours in office as Joe Biden did in his entire first week. 
     
    Yesterday, we hosted a local media row here at the White House with television and radio stations from across the country that reached up to 60 million viewers and listeners. 
     
    In our ongoing pursuit of transparency, on this one-month celebration, I am thrilled to bring three of my colleagues and our policy experts here at the White House to further recap this incredible first month of accomplishments in greater detail.
     
    We have Deputy Chief of Staff for Policy and Homeland Security Advisor Stephen Miller; the Director of the National Economic Council, Kevin Hassett; and our National Security Advisor, Mike Waltz. 
     
    I will hand it over to them.  They will deliver brief remarks on the accomplishments of this administration in the first month, and then we will open it up to Q and A.  When we open up the Q and A portion, I do ask, for the sake of efficiency in this room, that you direct your question to the principal you seek an answer from.  And I will call on you in this room.
     
    But first I will let them roll through their remarks.  And first up, I’ll turn it over to Stephen Miller.
     
    MR. MILLER:  Thank you.  It’s great to be back.
     
    And I want to just thank you all for joining today our one-month celebration of the most historic opening to a presidency in American history.  No president comes close to what Donald Trump has achieved over just the last 30 days.
     
    He has packed eight years of transformative action restoring this nation, restoring our laws, restoring fairness, restoring economic opportunity, restoring national security in just one month.  No one in this country has ever seen anything like it. 
     
    And when you look at the consequentiality and the significance and the transformative nature of the actions he’s taking, it truly defies description.  For example, in just one area, this nation has been plagued and crippled by illegal discrimination: diversity, equity, and inclusion policies.  It strangled our economy.  It has undermined public safety.  It has made every aspect of life more difficult, more painful, and less safe. 
     
    He has ended all DEI across the federal government.  He has terminated all federal workers involved in promulgating these unlawful policies.  He has ended diversity, equity, and inclusion in all federal contracting.  He has restored merit as the cornerstone of all federal policy; restored the full, fair, impartial enforcement of our federal civil rights laws for the first time in generations; and he has cracked down on individuals across this government and nonprofits who have engaged in illegal racial discrimination against the American people. 
     
    This includes making clear to every educational institution in this country that ending diversity, equity, and inclusion, ending unlawful race discrimination is a precondition of receiving federal funds. 
     
    He has also saved women’s sports by ending the participation of men in women’s sports.  He has ended radical gender ideology across the entire federal government, and he’s pressured the private sector to also end and combat radical gender ideology.  He’s reestablished the scientific and biological truth that there are only two sexes in this country — male and female — that those are biologically based determinations.  They are not based and can never be based on gender identity. 
     
    That includes rooting out of the Department of Defense all DEI policies, all critical race theory, all gender madness, and once again having a military that is focused solely and exclusively on readiness, preparedness, and lethality.
     
    As I’m sure Kevin will talk about more, of course, he has undertaken a historic cost-cutting effort across the federal government, launching the first-ever Department of Government Efficiency, uncovering corruption on a scale that we never thought imaginable, terminating every single federal worker that we — that we have found to be engaged in the corruption and theft and the waste of taxpayer dollars, and already saving $50 billion in a single year, which over a 10-year period would be $500 billion.  Just think about how vast and enormous that sum is. 
     
    Of course, as you all know, he has renamed the Gulf of Mexico to its correct and proper name: the Gulf of America.  He has renamed Mount Denali into Mount McKinley, part of a historic effort to restore patriotism and national pride all across this land. 
     
    He has ended the weaponization of the federal government, restored the Department of Justice to its true mission of combating threats to this nation and keeping the American people safe. 
     
    He has ended all federal censorship of free speech.  This has been one of the greatest crises that has plagued this nation.  Years and years and years, the federal government violating the First Amendment to take away Americans’ right of free speech — President Trump has ended that.  And he has demanded that all federal workers, all law enforcement cease any effort to intimidate the rights of Americans or to police their speech. 
     
    He has also restored the death penalty at the Department of Justice, including for illegal aliens who commit murder, including for those who murder cops, and including for all of those who threaten Americans with heinous acts of violence.  The death penalty is back.  Law and order is back.  The streets are being made safe once again. 
     
    On the public health front, he has launched the nation’s first-ever commission — the MAHA Commission — Make America Healthy Again, following the historic confirmation of RFK Jr., to finally uncover the true root causes of the public health crisis in this country, the childhood disease epidemic in this country, the spiraling rates of pediatric cancer and devastating childhood sickness. 
     
    He has finally created a situation where the federal heal- — health agencies in this country will be focused on preventing disease, on keeping children from getting sick in the first place, not sentencing them to a lifetime in and out of hospitals, suffering needlessly, when we can find ways to prevent this epidemic of illness. 
     
    Then, of course, on homeland security.  Today, it is officially the law of the land at the conclusion of the congressional notification process that six Mexican cartels and two transnational gangs — Tren de Aragua, or TDA, and MS-13 — so eight organizations in total — are now formally designated as foreign terrorist organizations, which means that every single member of those organizations who operates on U.S. soil is now, as a legal matter, a terrorist, and they will be treated as terrorists. 
     
    This is a sea change in U.S. policy.  And this means the Department of Justice and the Department of Homeland Security, along with the rest of U.S. law enforcement and the Department of Defense, are now operating in a legal reality where these cartels are recognized as terrorists, and there will be a whole-of-government effort to remove these terrorists from our soil and to degrade their ability to threaten or undermine any American security or sovereignty interests.
     
    Border crossings since the day he took office are down 95 percent.  I think it’s almost impossible to even describe the scale and scope of that achievement.  President Trump, within days of taking office, cut border crossings 95 percent. 
     
    And those few who have dared to cross are being either prosecuted or deported.  They’re either facing significant jail time for trafficking, smuggling, harboring, aiding, impeding, or they’re being immediately removed from our soil.  Either way, at the end of the process, they are going home. 
     
    He has reimplemented Remain in Mexico, and he has obtained historic cooperation from foreign countries all around the world in accepting their deportees back. 
     
    And he has used the United States military to fully seal the southern border with a historic deployment of both active duty and National Guard troops, resumed the building of infrastructure.  He has opened up Guantanamo Bay, and he’s using military aircraft to carry out deportations all across this country. 
     
    And ICE is joining with ATF, DEA, and FBI to carry out the largest deportation operation in American history.  The criminals are going home.  The border is sealed shut.  America is safe, sovereign, proud, and free.  We are a nation that everyone in the world understands all across this planet: You do not come here illegally.  You will not get in.  You will go to jail.  You will go home.  You will not succeed. 
     
    This is the biggest and most successful change in any area of law enforcement that this nation has ever seen, and he did it in under one month. 
     
    Thank you.
     
    MR. HASSETT:  Should I go?
     
    MS. LEAVITT:  Yes, yes.
     
    MR. HASSETT:  Well, thank you, Karoline.  Thank you, Stephen. 
     
    You know, one of the things that President Trump cares most about is job creation.  And it was about seven years ago I had the honor of joining you in this room for the first time, and it looks like we’ve created a lot more jobs in the last month.  Look at how many people are here.  I — my estimate is about 180 but — but I didn’t count. 
     
    So, thank you.  It’s really an honor to be back here.  I think that I just want to go over a few things and then hand it off to Mike. 
     
    The first thing is that the President has told us to prioritize fighting inflation, and he had to do that because, as you know, President Biden let inflation get completely out of control.  And he did it with policies that made no sense.  They made no sense. 
     
    You know, a lot of times, you people say to us — our friends, the journalists — you know, “Why are you doing that?”  But — but, you know, I like to think, “Why did they do that?  Why did they spend so much money and then — why did the Fed print so much money so that we had inflation as high as we’ve ever seen since Jimmy Carter?  So, why did they do that?”
     
    So, we’re addressing inflation.  We didn’t have to address it in the first term, because it was always in the 1s, almost always.  But we’re going to get it back there. 
     
    And how are we doing it?  Well, we’re doing it with a plan that President Trump and I and others have talked about in the Oval that involves, like, every level of fighting inflation. 
     
    First, the macroeconomic level.  We’re cutting spending.  We’re cutting spending in negotiations with people on the Hill.  We’re cutting spending with the advice of our IT consultant, Elon Musk.  And then we’re also looking into supply-side things, like restoring Trump’s tax cuts, maybe even expensing new factories so that there is an explosion of supply.  If you have an explosion of supply and a reduction in government demand, then inflation goes way down. 
     
    And then, one of the things that you want to say is “Well, when are you going to see it?”  Well, the first thing that you’ll see when the markets believe that we’re going to get inflation under control is that the 10-year Treasury rate goes down, because that’s how they think about future expected inflation. 
     
    And so, we’re still going to see some memory of Biden’s inflation.  It’s not going to go away in a month.  But the 10-year Treasury before the last Consumer Price Index had dropped about 40 basis points.  Forty basis points because markets were optimistic about our ability to fight inflation. 
     
    Forty basis points is kind of not a fun thing to say.  I — economists talk that way.  I apologize.  But the way to think about it is, for a typical mortgage, if that affects the mortgage rate, then it’s going to save a typical family buying a house about a thousand bucks a year, and that’s just in our first month. 
     
    Okay.  The second thing we’ve done is we’ve had a lot of trade talks.  In fact, I was just meeting a minister from Mexico with Howard Lutnick just a couple of hours ago.  And we’re talking about reciprocal trade, and we’re also talking about the fentanyl crisis. 
     
    And so, reciprocal trade is about our government treating other governments the way they treat us.  We want trade to be fair.  It turns out that Americans have been disadvantaged by foreign governments over and over, and President Trump wants it to stop.  And the fact that struck me as most noticeable, when I started to look at what President Trump was asking us to do, is that last year — last year — we have data — U.S. companies paid $370 billion in taxes to foreign governments — $370 billion.  Last year, foreign multinationals paid us $57 billion in taxes. 
     
    We have one quarter of world GDP.  They have three quarters of world GDP.  And we’re paying $370.  They’re paying $57.  This is not reciprocal.  We’re going to try — or we’re going to fix it. 
     
    The other thing that we’ve done is we’ve had an all-of-the-above energy approach that’s led by Doug Burgum and Chris and a really large team — EPA — and we’ve already made so many actions that are going to affect the price of energy and lower inflation. 
     
    We’ve opened up 625 million acres to energy exploration.  We’ve cut 50 years of red tape that makes it so you can’t have permits.  And we’ve even made it so that when you go home, if you get a new one, then you can take a shower or flush a toilet or read under a light bulb.  We’re doing that too. 
     
    So — so, finally, let’s just think about, like, the facts that we can see right now that we think are awesome.  So, guess what?  Small-business optimism is — has go- — gone up by the most ever since President Trump came in.  ISM, which is the measure of what’s going on in manufacturing, it’s expanding again for the first time in years.  CEO confidence is the highest it’s been in years.  And the reason — the reason people are thinking this is that our policies give people cause for optimism. 
     
    And then I want to reiterate what Stephen Miller said, because it’s so important — and it’s so important for financial markets to start to digest this — that if, say, the Treasury secretary or the — any Cabinet secretary, with Elon Musk, is able to find some savings — say, $100 billion — well, in CBO land, that’s actually, like, about 10 times that or maybe 12 times that over a 10-year window. 
     
    And so, when you’re thinking about the negotiations right now over reconciliation and thinking about, well, $4 trillion, $5 trillion, well, those numbers, in terms of the savings, are going to end up being small because of all the waste that we’re finding. 
     
    And so, we’re incredibly optimistic about the future of inflation and the future of our economy.  And we’re optimistic because we’re making so much progress so far, and we already see it in market prices. 
     
    And, with that, I’ll hand it off to Mike. 
     
    MR. WALTZ:  All right.  Thanks, Kevin. 
     
    Well, good afternoon.  What a month and what a sea change in our — in our foreign policy.  In addition to what we’re doing on the border and restoring American sovereignty, in addition to what we’re doing in our economy and the job creation and the inflation reduction, we are bringing the world back to where it was at the end of President Trump’s first term, which is a world of peace, prosperity, and — and looking forward and getting us out of the chaos that we’ve just seen over the last four years. 
     
    So, over the last month, just to name a few, I had the honor of sitting in the Oval Office as President Trump spoke with President Putin and then immediately spoke with President Zelenskyy, and both of them said only President Trump could bring both sides to the table, and only President Trump could stop the horrific fighting that has been going on now for the better part of four years and that only President Trump could drive the world back to peace.  Both of those leaders said that in back-to-back calls.
     
    And, of course, we just had our historic talks mediated by our — our good friends and partners, Saudi Arabia — we give great thanks to Crown Prince Mohammed bin Salman for hosting — and sat down for the first time in years with the Russians and talked about a path forward with peace.
     
    On top of that and one of the things that led to that was a tremendous co- — confidence-building measure that we had with the release of Marc Fogel.  I’ll remind everyone, the last time that we had an American released from the Russians, either we gave up a deadly spy; pressured our allies to give up a lethal killer; or we released, under the Biden administration, the world’s most notorious arms dealer, Viktor Bout, who, by the way, had one of his main clients for arms the cartels in — in Mexico and Central America. 
     
    We gave up none of that.  This was released as a confidence-building measure, working with our great Middle East Envoy, Steve Witkoff, and our secretary of State as a first step towards opening these talks and then moving forward towards peace. 
     
    On top of that, we’ve secured, just in a month, the return of a dozen — 12 — American hostages from Russia, from Bulgaria, from Venezuela, the Taliban, and Hamas.  Excuse me, that’s from Belarus, not Bulgaria. 
     
    We also had — for the first time in quite some time, we took out a senior leader of ISIS, an international financier and recruiter that the military had been trying to take out for quite some time and — and wasn’t able to do so, frankly, because of a bureaucratic approval process.  President Trump said, “Take him out.”  And that ISIS financier and leader is no longer on this Earth. 
     
    We’ve also taken action to eliminate other terrorist organizations in the Middle East.  We drove — before the President was even in office, he started talking consequences for people that would hold Americans. 
     
    Heretofore, there’s been nothing but upside.  You take an American, you get some better deal.  You take another one, maybe you get a better deal.  No more.  There is now nothing but downside for taking Americans illegally, either as hostages or illegal detainees. 
     
    And when President Trump sent a very clear message across the Middle East, but particularly to Hamas, that there would be all hell to pay, we suddenly saw a breakthrough.  And now we just saw the release of yet another group of hostages.  There have been dozens now, including two Americans that we’ve seen once again reunited with their families. 
     
    As part of the talks with King Abdullah, he offered — and — and I think the entire world has graciously accepted — to take 2,000 sick children, cancer patients, and others out of Gaza.  As a humanitarian — as a humanitarian gesture, 2,000 Gazans will come out of that hellhole that it is, that wasteland that Gaza is right now, with unexploded ordnance, with debris everywhere, with no sewage, with no water.  And — and President Trump has — has put forward a plan to deal with the practical reality that is 1.8 million Gazans now — now truly suffering.
     
    And then, you know, just to bring it back to our own hemisphere, we’ve seen literally, in the last month — after years of national security experts, the generals in charge, and others testifying and ringing the alarm bells about — about the Chinese Communist Party’s presence in our own hemisphere, particularly in the Panama Canal, we’re seeing the leadership of Panama step away from the Belt and Road program, move away from China and back towards the United States, and even enter into talks and — and other negotiations about addressing the ports on either side of the canal. 
     
    And then, finally, last but not least, we’ve had four world leaders in the White House, in the Oval Office.  We’ve had the prime minister of Japan, the prime minister of India, the king of — of Jordan, and, of course, the prime minister of Israel just in the last four weeks.  And next week, we’ll have the Prime Minister of the United Kingdom and we’ll have the president of France, Macron. 
     
    So, President Trump is on what we call Trump warp speed.  We are all — we are all honored to be really serving under — under his leadership and his vision.  And truly, you know, when we all say — and the President himself say — says, he is a president of peace.  He is a president focused on restoring stability.  I think the entire world saw what the world would look like without strong American leadership in the last four years.
     
    And it’s truly been an honor to get us back to where we were and back on track under President Trump’s leadership. 
     
    MS. LEAVITT:  Thank you, Mike. 
     
    MR. WALTZ:  Mm-hmm.
     
    MS. LEAVITT:  Thank you.  Thank you, everybody.  I’m sure you’re very eager to ask questions of these very smart people working very hard on behalf of the president. 
     
    We do have somebody in our new media seat today.  We have John Stoll, who is the head of news at X.  As you all know — you’re all on X — it’s home to hundreds of millions of users, a large contingent of independent journalists and news organizations across geographies and political spectrums.  And at the same time, X remains the go-to platform for many legacy news outlets.  And I know, as I mentioned, many of the reporters in this room use X to attract eyeballs to your work. 
     
    Prior to joining X, John spent two decades in journalism, including several years as an editor at The Wall Street Journal.  We are excited to have him in the briefing room today.
     
    John, we’ll let you kick it off.  And as I said at the top, please direct your question to the individual up here who you’d like an answer from. 
     
    John, why don’t you begin.
     
    Q    All right.  Thank you very much.  I am sitting in for a thriving ecosystem of journalists, independent and — and emerging news organizations who do depend on X for publicity, for a business model.  And so, I look forward to seeing many of them in this seat in months and years to come. 
     
    I also thank you, Karoline, for opening this seat up to new media.  It — it really is a testament not only to your open-mindedness but also to innovation that you’d actually think about, you know, folks that are not traditionally credentialed to be in this room to be in this room and to not only have a question but also to witness — you know, this is at a very important intersection of power and the free press.
     
    And so, just the ability to witness this and — and be part of it, it brings everybody’s game up.  So, thank you for that. 
     
    I think this is for Mike Waltz.  My question is about Ukraine.
     
    MR. WALTZ:  Sure.
     
    Q    For about more than 10 years, I’ve been fascinated, like all — like many, with what’s going on.  I was in Northern Europe working out of the Baltics when Crimea was annexed and was — a lot — a lot of this came on Twitter.  The platform used to be known as Twitter.  Was — a lot of European leaders would — would talk about their disappointment and — and solidarity with Ukraine, but when it came to actually doing something, it felt like they were passing a hot potato and sent it over the Atlantic. 
     
    I wonder how much of what we’re seeing right now out of the administration and President Trump is a call to Europe and the European leaders and allies that we’ve traditionally had to pick up that hot potato and — and start doing something a little bit more concrete to win and preserve the peace in Ukraine. 
     
    The second question I have is — it — it’s related — is there’s been some — a lot of speculation that President Trump and the administration might be manipulated by Pre- — by Vladimir Putin.  I wonder if you can just talk a little bit about the administration’s posture —
     
    MR. WALTZ:  Yeah.
     
    Q    — and your confidence in the competence of this administration to d- — go toe to toe with Vladimir Putin. 
     
    MR. WALTZ:  Well, if there’s an- — I’ll take the l- — second question first.  If there’s anybody in this world that can go toe to toe with Putin, that could go toe to toe with Xi, that could go toe to toe with Kim Jong Un — and we could keep going down the list — it’s Donald J. Trump.  He is the dealmaker in chief.  There is no question that he is the commander in chief. 
     
    And I, for one — and I think all Americans and around the world should have no doubt about his ability to not only handle Putin but to handle the complexity of driving this war to an end. 
     
    And then on your first piece on Europe, I’ll take you back to 2014.  You’re right.  There was a lot of hand-wringing in Europe and not a lot of action.  There was also a lot of hand-wringing here in Washington under the Obama administration and not a lot of action.  They literally threw blankets at the problem. 
     
    And so, I’ll remind everyone that Putin had, you know, some type of conflict, invasion, or issue with their neighbor under President Bush, with Georgia; under President Obama, with Ukraine in 2014; not under President Trump, 45; and again with President Biden in 2022.  The war should have been deterred.  The war should have never happened, and I have no doubt it would not have happened under President Trump and will stop under President — President Trump again. 
     
    But I just want to push back on this notion of our European allies not being consulted as we’ve entered into this process.  I already mentioned the immediate phone call President Trump made to President Zelenskyy.  He has talked to President Macron of France repeatedly last week.  President Macron convened European leaders and then is coming here on Monday.  Prime Minister Starmer is coming next Thursday. 
     
    We’ve also — I’ve talked to every one of my national security — national security advisor counterparts across — across the spectrum in Europe.  I’ve talked to Secretary-General Rutte, the — the leader of NATO, the secretary-general of NATO.  We have repeatedly — oh, by the way, we had half our Cabinet — seven Cabinet officials, including the vice president, at the Munich Security Conference, all engaging, all listening, and all making sure our allies were heard. 
     
    However, we’ve also made it clear for years — decades, even — that it is unacceptable that the United States and the United States taxpayer continues to bear the burden not only of the cost of the war in Ukraine but of the defense of — of Europe.  We fully support our NATO Allies.  We fully support the Article 5 commitment.  But it’s time for our European allies to step up. 
     
    And one of the things that Secretary-General Rutte said on our call was this last couple of weeks have been a real wake-up call.  And I asked him, “What have you been missing the last couple of years?” 
     
    The fact that we are going to enter into a NATO summit this June with a third of our NATO Allies still not meeting the 2 percent minimum, a commitment they made a decade ago — literally a decade ago — with a war on their doorstep — the largest war that they’re all extremely concerned about — but yet it’s “Well, somebody else needs to pay.  We’ve got other domestic priorities.”  It’s unacceptable.  President Trump has made that clear. 
     
    And the minimum needs to be met.  We need to be at 100 percent in — this June at the NATO summit.  And then let’s talk about exceeding it, which what — is what President Trump has been talking about, with 5 percent of GDP. 
     
    Europe needs to step up for their own defense as a partner.  And we can be friends and allies and have those tough conversations. 
     
    MS. LEAVITT:  Great.  Peter.
     
    Q    Thank you, Karoline.  I have a Ukraine one and a DOGE one.  Who can talk DOGE?
     
    MS. LEAVITT:  Stephen, go ahead.
     
    Q    Well, so — so, Stephen, we’re hearing about these DOGE dividend checks that would be 20 percent back to taxpayers, 20 percent to pay down the debt.  Sixty percent is left.  Who gets that?
     
    MR. MILLER:  Well, the way that it works is when you achieve savings, you can either return it to taxpayers, you can return it to our debtors, or it can be cycled into next year’s budget, and then it just lowers the overall baseline for next year.  So, in other words, you can just transfer it into the next fiscal window and then lower the overall spending level.  And that means that you can achieve a permanent savings that way, and that reduces the deficit. 
     
    Q    And when is it that people might see those checks?
     
    MR. MILLER:  Well, this is all going to be worked on through the reconciliation process with Congress that’s going underway right now, as you’ve seen.  The Senate is moving a bill.  The House is moving a bill.  The president has great confidence in both chambers to deliver on his priorities. 
     
    I would just take this opportunity to note that President Trump has made a historic commitment to the working class of this country to fight for a major tax relief and major price relief.  And cutting spending, as DOGE is doing, and cutting taxes is the key to delivering on both of those promises.  And President Trump is resolutely committed to doing both. 
     
    Q    Thank you.  And on Ukraine.  I guess, this is for Mike.
     
    MR. WALTZ:  Sure. 
     
    Q    After the president’s post on Truth Social yesterday, need to know: Who does he think is more responsible for the Russian invasion of Ukraine, Putin or Zelenskyy?
     
    MR. WALTZ:  Well, look, his — his goal, Peter, is to bring this war to an end, period.  And there has been ongoing fighting on both sides.  It is World War I-style trench warfare. 
     
    His frustration with President Zelenskyy is — that you’ve heard — is multifold.  One, there needs to be a deep appreciation for what the American people, what the American taxpayer, what President Trump did in — in his first term, and what we’ve done since.  So, some of the rhetoric coming out of Kyiv, frankly, and — and insults to President Trump were unacceptable.  Number one. 
     
    Number two, our own secretary of Treasury personally made the trip to offer the Ukrainians what is — can only be described as a historic opportunity — that is for America to coinvest with Ukraine in their minerals, in their resources, to truly grow the pie. 
     
    So, case in point, there’s a foundry that processes aluminum in Ukraine.  It’s — it’s been damaged.  It’s not at its current capacity.  If that is restored, it would account for America’s entire imports of aluminum for an entire year — that one foundry.
     
    There are tremendous resources there.  Not only is that long-term security for Ukraine, not only do we help them grow the pie with investments, but, you know, we do have an obligation to the American taxpayer in helping them recoup the hundreds of billions that ha- — that have occurred. 
     
    So, you know, rather than enter — enter into some constructive conversations about what that deal should be going forward, we got a lot of rhetoric in the media that was — that was incredibly unfortunate. 
     
    And I could just tell you, Peter, you know, as a veteran, as somebody who’s been in combat, this war is horrific.  And I think we’ve lost sight of that, of the literally thousands of people that are dying a day, families that are going without the next generation. 
     
    And I find it kind of, you know, frankly, ridiculous.  So many people in Washington that were just demanding, pounding the table for a ceasefire in Gaza are suddenly aghast that the president would demand one and both sides come to the table when it talks to — when it comes to Ukraine, a war that has been arguably far greater in — in scope and scale and far more dangerous in terms of global escalation to U.S. security.
     
    Q    And I do have one for Karoline.
     
    MS. LEAVITT:  Sure.
     
    Q    Does President Trump have a bet with Trudeau about this USA-Canada hockey game tonight?  (Laughter.)  And when there is a big hockey game on, is the president watching for the goals or for the fights?
     
    MS. LEAVITT:  (Laughs.)  Probably both.  I think he’s watching for the United States to win tonight.  I know he talked to the USA hockey team this morning.  He talked to the players after their morning practice, around 10 o’clock.  And I also spoke to some folks from that team after.  They were jubilant over President Trump’s comments to the team.  I believe they’re going to put out a video of that call. 
     
    So, he looks forward to watching the game tonight, and we look forward to the United States beating our soon-to-be 51st state, Canada.  (Laughter.)
     
    Bloomberg, go ahead. 
     
    Q    My question is for Mike Waltz.  Can you give us a readout of Kellogg’s meeting with Zelenskyy that just wrapped up?  And, in particular, Zelenskyy publicly rejected this deal about the rare earth minerals.  Where — where does that stand?
     
    MR. WALTZ:  Well, we’re going to continue to have — he needs to come back to the table, and we’re going to continue to have discussions about where that deal is going. 
     
    Again, we have an obligation to the taxpayer.  I think this is an opportunity.  The president thinks this is an opportunity for Ukraine going forward.  There can be, in my view, nothing better for Ukraine’s future and for their security than — than to have the United States invested in their prosperity long-term.  And then a key piece of this has also been security guarantees. 
     
    Look, the — the reality that we’re talking about here is: Is it in Ukraine’s interest?  Is it in Europe’s interest?  It certainly isn’t in Russia’s interest or in the American people’s interest for this war to grind on forever and ever and ever. 
     
    So, a key part of his conversation was helping President Zelenskyy understand this war needs to come to an end.  This kind of open-ended mantra that we’ve had under the Biden administration, that’s over.  And I think a lot of people are having a hard time accepting that.
     
    And then the other piece is there’s been discussions from Prime Minister Starmer and also President Macron about European-led security guarantees.  We welcome that.  We’ve been asking Europe to step up and secure its own prosperity, safety, and security.  So, we certainly welcome that. 
     
    And we certainly welcome more European assistance.  As I told my counterparts, “Come to the table with more, if — if you want a bigger seat at the table.”  And we’ve been asking for that for quite some time. 
     
    Q    And has Russia pushed for sanctions in your talks with them?  And have you consulted with international partners and allies about potentially rolling back sanctions in these negotiations to end the war?
     
    MR. WALTZ:  Those — the talks with — with our Russian counterparts — both with my counterpart, the national security advisor; Secretary Rubio’s counterpart, the Foreign Minister, Foreign Minister Lavrov — you know, it — it really were — was quite broad, focused on what is the goals for our broader relationship, but very clear that the fighting has to stop to get to any of those brighter goals. 
     
    And as a first step, we’re just going to do some commonsense things, like restore the — the ability of both of our embassies to function. 
     
    And, again, you know, this is — this was common sense.  In — in foreign policy world, they call it “shuttle diplomacy.”  We have to talk to both sides in order to get to both sides to the table, and both sides have said only President Trump could do that. 
     
    MS. LEAVITT:  Diana.
     
    Q    Thank you.  And my question is for Mike Waltz.  (Laughter.)
     
    MR. WALTZ:  All right.
     
    Q    The president has called Zelenskyy a dictator.  Does he view Putin as a dictator? 
     
    And does he want Zelenskyy out of power?  I know he’s called for elections. 
     
    And then, thirdly, the head of the Defense Committee in Ukraine’s parliament just has claimed that the U.S. has stopped selling weapons to Ukraine.  Is that true?
     
    MR. WALTZ:  Well, most of our weapons that have gone to Ukraine have been part of a drawdown authority, where we’ve literally taken them out of our stocks and then, eventually, through appropriations, started buying them again to refill our stocks. 
     
    I’ll, you know, just state that there has been a lag in a lot of that process.  So, many of our stocks, as we look at our operations around the world, are becoming more depleted.  That’s one of the reasons many people have had a lot of concern about: When does this end?  How much is it going to take?  How many lives will be lost?  How much will we be — how much will we spend? 
     
    As a member of Congress, we repeatedly asked the Biden administration those questions, and we never got a satisfactory answer. 
     
    Look, President Trump is obviously very frustrated right now with President Zelenskyy — the fact that — that he hasn’t come to the table, that he hasn’t been willing to take this opportunity that we have offered.  I think he eventually will get to that point, and I hope so very quickly.
     
    But President Trump is — as we made clear to our Russian counterparts, and I want to make clear today — he’s focused on stopping the fighting and moving forward.  And we could argue all day long about what’s happened in the past. 
     
    MS. LEAVITT:  Reagan.
     
    Q    Thanks.  I have a question for Stephen —
     
    (Cross-talk.)
     
    Q    — and a question for Mike.
     
    MS. LEAVITT:  Excuse me, I just called on Reagan.  Reagan, go ahead. 
     
    Q    I have a question for Stephen and a question for Mike. 
     
    MS. LEAVITT:  Sure.
     
    Q    Stephen, I can start with you.  There have been reports —
     
    MR. MILLER:  Thank you.
     
    Q    — that Trump is unhappy with the rate of deportations and he wants them to be higher.  Is the president happy with the rate of deportations, and are there any plans to speed up the process?
     
    MR. MILLER:  Well, first of all, we all appreciate the encouragement from the media to deport as many illegal aliens as humanly possible.  So, thank you. 
     
    And I will promise you that the full might of the Department of Homeland Security, the Department of Justice, the Department of Defense, and every element and instrument of national power will be used to remove, with speed, all criminal illegals from the soil of the United States of America, to enforce final removal orders, and to ensure that this country is for American citizens and those who legally belong in this country.
     
    We inherited an ICE that was completely shuttered.  We inherited a Department of Homeland Security whose sole mission was to resettle illegal aliens within the United States of America. 
     
    In 30 days, the president sealed the border shut, declared the cartels to be terrorist organizations, has increased ICE deportations to levels not seen in decades, and we are shortly on the verge of achieving a pace and speed of deportations this country has never before seen. 
     
    Thank you. 
     
    Q    And Mike.
     
    MR. WALTZ:  Mm-hmm.
     
    Q    There have been reports that there’s some underground opposition to Trump’s pick for Undersecretary of Defense for Policy, Elbridge Colby.  Have you or anyone from the administration been personally lobbying senators to support Elbridge Colby? 
     
    MR. WALTZ:  Look, I’ve worked with Bridge Co- — Colby in the past.  He has the president’s full support to be the Undersecretary of policy, which will be a critical policy arm for Secretary Hegseth going forward that will implement a lot of these policies. 
     
    And — and really, that’s — that’s been the extent of it.  I think there’s been a lot of kind of, you know, breathless — I don’t know — back-and-forth in the — in the press, but we’re full speed ahead to get the president’s team in place so we can implement his America First policy. 
     
    MS. LEAVITT:  Thank you.  Mike has spoken pretty extensively.  Does anybody have questions for Stephen or for Mr. Hassett?
     
    Q    I do.
     
    MS. LEAVITT:  Nobody wants to talk about the economy?  (Laughter.)
     
    (Cross-talk.)
     
    MS. LEAVITT:  Sure. 
     
    Q    IRS.
     
    MS. LEAVITT:  IRS.  Okay.  Go ahead.
     
    Q    And this would be for either one of you.  So, we have reported, several other outlets have reported that about 3,500 people are due to be — lose their jobs at the IRS by the end of the week.  If the goal of these spending cuts across the federal government has been to reduce the debt, why impose some of the deepest cuts we’ve seen so far at the agency responsible for raising revenue for the federal government?
     
    MR. HASSETT:  Well, I think our objective is to make sure that the employees that we pay are being productive and effective.  And there are many, many — more than 100,000 people working to collect taxes, and not all of them are fully occupied.  And the Treasury secretary is studying the matter and feels like 3,500 is a small number and probably can get bigger, especially as we improve the IT at the IRS.
     
    And so — so, I think that it’s absolutely something that is on the table for good reasons.  And the point is that — don’t just talk about the IRS.  Talk about all of government, that there are so many places — I live in D.C.; you maybe live in D.C. — where you never — there — nobody — nobody is going into the buildings.  People aren’t commuting because nobody is doing their job.  We look back and we see that there are all these people doing two jobs while they’re getting a government payroll — on the payroll. 
     
    So, the point is, we’re fixing that, and the IRS is a small part of that picture. 
     
    Q    So, you’re saying that everybody who’s being let go was doing a bad job?
    MR. HASSETT:  I’m saying that we’re studying every agency and deciding who to let go and why, and we’re doing so very rationally with a lot of support from analysis. 
     
    Q    Because we’re being told by a lot of people who have been let go at other agencies that they were told they were being dismissed because of poor performance, when, in some cases, they haven’t even had a performance review yet because they’ve only been on the job a couple of months. 
     
    MR. HASSETT:  Yeah, I’ve never seen a person who was laid off for poor performance say that they were performing poorly.  (Laughter.)  Okay?
    Q    Karoline.
     
    MS. LEAVITT:  Good point.  Sure, Kaitlan.
     
    Q    I have a question.  I’ll start with you, Kevin Hassett.  Thank you for being here.  And then I’ve got a question for Mr. Waltz.
     
    On these potential checks that you might send out from DOGE, is there a concern, as you’re thinking through this, that they could be inflationary?
     
    MR. HASSETT:  Oh, absolutely not, because imagine if we don’t spend government money and we give it back to people, then the — you know, if they spend it all, then you’re even.  But they’re probably going to save a lot of it, in which case, you’re reducing inflation. 
     
    Q    Okay.  So, you’re not —
     
    MR. HASSETT:  And also, when the government spends a lot, that’s what creates inflation.  We learned that from Joe Biden.  And so, if we reduce government spending, then that’s — you know, reduces inflation.  And if you give people money, then they’re going to save a bunch of it.  And — and when they save it, then that also reduces demand and reduces inflation. 
     
    Q    Okay.  So, you’re not worried about it. 
     
    MR. HASSETT:  No, I’m not.
     
    Q    And, Mr. Waltz, to follow up on Peter’s question, you wrote in an op-ed in the fall of 2023 that, quote, “Putin is to blame, certainly, like al Qaeda was to blame for 9/11.”
     
    MR. WALTZ:  Mm-hmm.
     
    Q    Do you still feel that way now, or do you share the president’s assessment, as he says Ukraine is to blame for the start of this war?
     
    MR. WALTZ:  Well, it shouldn’t surprise you that I share the president’s assessment on all kinds of issues.  What I wrote as a Member of Congress is — was as a former Member of Congress. 
     
    Look, what I share the president’s assessment on is that the war has to end.  And what comes with that?  What comes with that should be, at some point, elections.  What comes with that should be peace.  What comes with that is prosperity that we’ve just offered in this natural resources and economic partnership arrangement: an end to the killing and European security and security for the world.  The President is not only determined to do that in Europe, he’s determined to do it in the Middle East. 
     
    And just a few months ago, we had an administration that had tried for 15 months, week after week, sitting with you here, and couldn’t get us to a ceasefire, couldn’t get our hostages out.  Now we’re at that point.  We’re back to the maximum pressure on Iran.
     
    And we will — we have just begun, and we will drive towards a ceasefire and all of those other steps.  I’m not going to pre-negotiate or get ahead of the sequencing of all of that.  It’s a very delicate situation. 
     
    But this is a president of peace.  And who here would argue against peace?
     
    Q    Okay.  So, you do share that assessment. 
     
    And can I follow up.  In 2017 —
     
    MS. LEAVITT:  No.  Go ahead, Jordan.
     
    Q    — then-President Trump —
     
    MS. LEAVITT:  Go ahead, Jordan. 
     
    Q    Can I just follow up really quickly?
     
    Q    Thank you.  So —
     
    MS. LEAVITT:  You just had two questions, Kaitlan.
     
    Q    May I — can I just —
     
    MS. LEAVITT:  Jordan, go ahead. 
     
    Q    Mr. — Mr. Hassett —
     
    MS. LEAVITT:  Thank you.
     
    Q    I have an important follow-up for Mike Waltz.
     
    MS. LEAVITT:  Jordan, go ahead.  Go ahead.
     
    Q    So, Mr. Hassett, you were speaking about tariff revenue, and you also addressed a question about the R- — IRS.  President Trump has spoken about replacing income tax with tariff revenue, especially with all this waste, fraud, and abuse that we’re seeing cut.  Is that a possibility?
     
    MR. HASSETT:  Absolutely.  And, in fact, if you think about the China tariff revenue that we’re estimating is coming in from the 10 percent that we just added, plus the de minimis thing, that it’s between $500 billion and a trillion dollars over 10 years, is our estimate.  And that’s something that is outside of the reductions that markets are seeing through the negotiations up on the Hill.
     
    And so, we expect that the tariff revenue is actually going to make it much easier for Republicans to pass a bill, and that was the President’s plan all along. 
     
    Thank you.
     
    Q    And I — I have a question for Stephen Miller about DOGE.  So, you — you spoke about DOGE.  You said roughly $50 billion is set to be cut in a year of waste, fraud, and abuse by unelected bureaucrats.  We’re hearing this ironic narrative from the President’s critics and the left-wing media that Elon Musk is an unelected bureaucrat, and he’s doing all this terrible stuff.  Isn’t one of DOGE’s objectives to get — get rid of the federal bureaucracy, the — the deep state?  And also, who was running the White House when Joe Biden was in office —
     
    MR. MILLER:  (Laughs.)
     
    Q    — because I don’t know a single person who believes it was Joe Biden? 
     
    MR. MILLER:  Yes.  You’re — you’re tempting me to say — (laughs) — some very harsh things about some of our media friends.  The — yes, it is true that many of the people in this room, for four years, failed to cover the fact that Joe Biden was mentally incompetent and was not running the country. 
     
    It is also true that many people in this room who have used this talking point that Elon is not elected fail to understand how government works.  So, I’m glad for the opportunity for a brief civics lesson. 
     
    A president is elected by the whole American people.  He’s the only official in the entire government that is elected by the entire nation.  Right?  Judges are appointed.  Members of Congress are elected at the district or state level.  Just one man. 
     
    And the Constitution, Article Two, has a clause, known as the vesting clause, and it says, “The executive power shall be vested in a president,” singular.  The whole will of democracy is imbued into the elected president.  That president then appoints staff to then impose that democratic will onto the government. 
     
    The threat to democracy — indeed, the existential threat to democracy — is the unelected bureaucracy of lifetime, tenured civil servants who believe they answer to no one, who believe they can do whatever they want without consequence, who believe they can set their own agenda no matter what Americans vote for. 
     
    So, Americans vote for radical FBI reform, and FBI agents say they don’t want to change.  Or Americans vote for radical reform in our energy policies, but EPA bureaucrats say they don’t want to change.  Or Americans vote to end DEI — racist DEI policies, and lawyers in the Department of Justice say they don’t want to change. 
     
    What President Trump is doing is he is removing federal bureaucrats who are defying democracy by failing to implement his lawful orders, which are the will of the whole American people. 
     
    Thank you. 
     
    Q    Thanks, Stephen.  Can I follow up?
     
    Q    Karoline.
     
    MS. LEAVITT:  Thank you very much, everybody.  I’m looking at the clock.  We’ve almost had an hour of time. 
     
    (Cross-talk.)

    LEAVITT:  I know a couple of these individuals have a meeting to get to at 2:00 p.m.  So, you’re welcome to follow up with my team for further questions.  We’re going to let these guys get back to running the United States government.
     
    And we will see you all later.  President Trump will be speaking at 3 o’clock at the Black History Month reception.
     
    So, thank you.  It’s good to see you.  We’ll see you in a bit.  Thanks.
     
    Q    Are you going to the Black History Month reception, Mr. Miller?
     
    Q    Stephen, on the fraud.  Should we expect indictments?
     
    Q    What is your reaction to Mitch McConnell’s retirement?
     
    Q    Are there indictments coming for all the fraud we’ve found?
     
         MR. MILLER:  I’d love to follow up with you.  Just set up a time with Karoline.
     
         Q    Okay.  Thank you. 
     
    END                   1:56 P.M. EST

    MIL OSI USA News

  • MIL-OSI Australia: (WIP) Big batteries in 2025: the market evolution continues

    Source: Allens Insights

    Another big year for BESS 12 min read

    Utility-scale batteries reached new heights in 2024, achieving several industry firsts. Milestones include the first project-financed virtual offtake agreement and long-term energy service agreement (LTESA), coupled with inventive approaches to revenue stack structuring. As investor interest intensifies, the future of battery storage looks promising.

    This latest Insight on the Australian big battery market delves into the recent trends, the potential opportunities and hurdles for this rapidly evolving industry.

    Key takeaways

    • Project financing of battery energy storage system (BESS) projects is on the rise, with an increasingly sophisticated market, a widening pool of sponsors and diverse range of investment structures.
    • Virtual offtake agreements are dominating the offtake market, giving developers greater flexibility in their revenue stack and opportunities for equity upside through market arbitrage.
    • Interest in the Capacity Investment Scheme and LTESAs is increasing and contributing to projects reaching financial close.
    • Equity investors continue to be attracted to standalone and co-located BESS projects, as well as investment in the hardware and software of a battery.

    What we are seeing in the market

    A growing number of battery projects achieved financial close across the past year and project finance has continued to be the dominant approach. We have seen significant greenfield and operational battery projects financed on a standalone basis and as part of hybrid projects, as well as portfolio-based financings. 

    Key examples of this trend are the renewables portfolio financings for Global Power Generation, FRV and Neoen, all of which included battery projects as part of the technology mix. Akaysha Energy’s standalone financing of its Orana Battery Energy Storage System marked a financing for the largest four-hour BESS in Australia’s National Energy Market (NEM), and one of the largest in the world. 

    The continued support in the project finance market for battery storage projects has been driven by a range of factors, including:

    • a widening pool of sponsors—and, in some cases, extremely strong sponsors—who are investing in the technology;
    • a diverse range of investment structures and rationales, which have seen developers and sponsors raise debt financing for batteries on a standalone and portfolio basis, or as part of co-located or hybrid projects. In some cases, this has been motivated by a business pivot or expansion in response to an increasing need to couple projects with intermittent generation sources with a firming energy source or, more generally, net zero and decarbonisation objectives; and
    • increasing sophistication and experience of developers, contractors and other stakeholders in relation to procurement and contracting strategy, trading strategy, management of interface and gap risk in the context of split contracting, and innovation in revenue structures.

    These trends have been accompanied by—and, in some ways, conducive to—an expanding range of financiers (including mainstream commercial banks, government lenders and other non-bank lenders) participating in financings for battery projects; a greater understanding from lenders of technology and degradation risk; and a greater market acceptance of split contracting structures and non-traditional revenue structures as bankable.

    Throughout 2024 we observed a marked increase in the development and adoption of virtual offtake agreements as a preferred offtake structure. Notable examples are Neoen’s Western Downs BESS and Victorian Big Battery, and, as mentioned earlier, Akaysha’s Orana BESS. 

    A virtual offtake agreement decouples the financial offtake from the physical project. The project company may therefore choose not to follow the instructions of the offtaker and instead operate the BESS according to its own internal trading strategy, but it must still settle the financial swap on pre-agreed terms, regardless of battery capacity and how much the battery is charged or discharged. 

    From the project company’s perspective, unlike a traditional physical toll, it retains control of the physical battery. This increases the opportunities for equity upside through trading arbitrage. The structure also facilitates greater flexibility for a single project to procure offtake agreements with multiple offtakers. It may also be compatible with hybrid or co-located projects in need of multiple offtakers for different components of the project.

    Virtual offtakes are not, however, for everyone. Both the owner and the offtaker need sophisticated trading teams to allow them to make the most of the virtual arrangements and to reduce the risk of making losses. Similarly, developers who want to sell out of a project prior to financial close may want to consider whether a virtual offtake agreement could limit the potential buyer pool to those that have the technical capability to trade the asset.

    In considering this type of structure from a financing perspective, lenders will be focused on mitigating the potential downside exposure in circumstances where physical trading by the project company underperforms against the virtual nominations, eroding actual base case revenue against revenue assumptions against which debt is sized.  

    Providing lenders with appropriate oversight and protections (including, if required, agreed trading protocols), while providing sufficient room for equity to seek upside opportunities, will be the key to building broader market acceptance of the bankability of non-traditional revenue structures such as virtual offtake agreements.

    Last year saw the Federal Government launch the first five tenders in its Capacity Investment Scheme, which wrapped in a tender for the NSW Government’s LTESAs.

    Each tender round has been oversubscribed, indicating a strong appetite from project developers to secure a government underwriting contract such as a Capacity Investment Scheme Agreement (CISA) or an LTESA

    While these underwriting contracts have typically been viewed by project financiers as welcome enhancements, they have traditionally been seen as a ‘nice-to-have’ feature, with the primary focus of lenders being on whether the project has the benefit of a traditional tolling or offtake agreement. At most, we saw sponsors and borrowers proposing to recognise CISAs and LTESAs acting as a floor against any potential market risk (either due to the residual life of the BESS past the offtake tenor or for partially contracted assets). 

    More recently, we are seeing lenders develop a greater understanding of how such agreements can underpin forecast project cashflows in a way that enables higher weighting to be placed on them as a certain and bankable revenue line in the base case financial model. This approach is often supported by tailored protections that are agreed in the debt documents, such as:

    • undertakings around how the project activates and manages its rights to receive support payments;
    • information undertakings, to provide lenders with appropriate visibility over the operation of the underwriting agreement during the facility term; and
    • cash reserving requirements, to facilitate the project maximising the benefit of underwriting agreements, while providing for a buffer should there be a need to meet any payment obligations back to the counterparty (eg reconciliation payments or rebates).

    As more government underwriting agreements are awarded under the LTESA and CISA schemes, there will be an increasing number of projects in the market where such agreements are a feature of the revenue profile. We expect that market acceptance of this approach will continue to broaden over time.

    Split contracting has established itself as the market standard for BESS projects, with sponsors and financiers becoming significantly more comfortable with managing and banking the interface risks between battery supply and balance of plant (BOP) scope.

    Commissioning, handover, defects, security, liability caps and liquidated damages coverage continue to be key areas of focus in negotiations, gaps analysis and bankability assessments. However, the issues, and the related mitigation strategies and contingencies, are now well understood.

    As the BESS split contracting structure has matured, we have also begun to see sponsors with a portfolio of upcoming BESS and other renewables projects seek to partner informally with preferred battery suppliers and/or BOP contractors across that pipeline—the goal being to expedite procurement timeframes, secure production slots and standardise terms across their portfolio.

    With BESS projects increasingly being co-developed with related solar/wind projects (either greenfield or expansions), we also expect to see an increase in a common BOP contractor delivering both the battery and solar/wind BOP scope. At this stage, the BOP scope usually remains ringfenced between assets (eg there is a BESS BOP contract and a solar BOP contract). However, we expect to see sponsors push towards a single hybrid project BOP contract covering both assets, to seek to streamline contracting terms and construction programs on hybrid projects.

    In order to ensure that the structure is bankable, project financiers require a rigorous gaps analysis process underpinning the contract negotiations, along with confidence in the capability and experience of the contractors themselves. The need for a robust gaps analysis does mean more substantial engagement with financiers, and sponsors and developers have had to factor this into the overall transaction timetable. However, the continued rise in standard terms contracts from certain contractors in the market may facilitate efficiencies in the due diligence process, especially on portfolio-based financings.

    Investors continue to be attracted to BESS assets. Unsurprisingly, the reasons for their increasing investment appeal are similar to why we are seeing more and more BESS projects reach financial close.

    These factors enable BESS owners to diversify and maximise revenue output from their renewable energy portfolios. Coupled with favourable investment characteristics for BESS assets, such as lower capex costs and shorter development timelines (particularly when compared with other renewable asset types), we expect to see investment appetite for BESS assets continue to grow.

    In the Australian M&A market, this investor appetite has manifested primarily in the form of co-location ‘add-ons’—where vendors looking to sell a solar or wind project have added a BESS development opportunity to the project. If the BESS can be developed on the project’s existing land footprint, the ‘add-on’ process is relatively simple (other than for the connection process, which continues to cause headaches for developers), and the project up for sale can be rebranded as a co-located wind/solar and BESS project, unlocking for the buyer the various new revenue streams. For the vendor, those additional revenue streams mean a higher purchase price.

    What’s on the horizon

    Recognition of sub-investment grade offtakers?

    The offtaker’s credit quality will continue to be a focus for lenders when assessing BESS projects. However, as a greater range of offtakers enter the market, we can expect more frequent proposals for financiers to consider counterparties that may not have the credit ratings that would typically be required for a bankable project.

    We are seeing this area incrementally develop. This is particularly so in renewables portfolio financings, where certain sub-investment grade offtakers may be recognised and given greater weighting (and, in some cases, equivalent to an investment grade offtaker) as part of debt sizing cashflows, subject to appropriate percentage caps and other criteria being met.

    Opportunities for fully merchant BESS projects

    A further example of the evolving market for BESS financings may be found in the recent Amp Energy project financing of a fully merchant BESS project by commercial bank lenders and Export Development Canada. While we have certainly seen project financings for BESS projects with merchant exposure, those projects have typically included at least some contracted revenue component (whether through a tolling agreement, virtual power purchase agreement, LTESA or revenue risk-sharing agreement). 

    This makes the Amp transaction an interesting market development. Depending on the project and the sponsor, the debt model on the Amp transaction may not be feasible for all sponsors and developers, given that a fully merchant BESS compared with a contracted BESS would necessarily mean more conservative debt sizing, at least in the short term. However, for certain sponsors with strong equity backing, where a high percentage of equity is available to be contributed to individual projects, and where there are challenges or other commercial reasons for not procuring an offtake, a fully merchant-based project financing may still be attractive. 

    Whether this means we will see a growing number of merchant BESS project financings is unclear. The Australian Energy Market Operator (AEMO) forecasts energy storage capacity in the NEM will increase from approximately 2GW at the end of 2024 to nearly 7GW by the end of 2025.1 As more BESS projects come online over time, there may be fewer arbitrage and other similar revenue opportunities. 

    At least in the short term, we expect this may lead to certain sponsors and developers more closely exploring opportunities to raise debt against BESS projects that are fully merchant or that have substantial merchant exposure.

    Investment in BESS platforms and core components

    A growing trend is the investment in BESS-specific investment platforms. While only a limited number have come to market in Australia so far (including the recent ZEBRE BESS platform announced by ZEN Energy and HDRE), we have worked with a number of investors who are looking at opportunities in this space. Investors are drawn to the benefits of BESS projects described above and the potential to accelerate the growth of those benefits when they are aggregated on a portfolio basis.

    We have also seen increased investment interest in core BESS components, including:

    • the hardware—as rival technologies, focused on cost efficiency and safety, are emerging to challenge lithium-based batteries; and
    • the software—focusing in particular on storage and discharge optimisation.

    While the current focus from investors in these core BESS components appears to be on systems designed for the residential and commercial and industrial markets, the ambition for a number of these technologies is to scale up to the utility-scale BESS market.

    Commencement of the GO Scheme

    The Guarantee of Origin Scheme (the GO Scheme) is set to commence in 2025, bringing with it new tradeable certificates in the form of Renewable Energy Guarantee of Origin (REGO) certificates. Unlike large-scale generation certificates, REGOs will be able to be created by energy storage systems (such as batteries) where there is a ‘direct supply relationship’ with an eligible renewable energy facility.

    In addition, REGOs will be time-stamped, meaning they will record the hour of the day in which they were generated. This will allow temporal matching of electricity generation and consumption, and will likely drive a price differentiation between eg REGO certificates generated at 1pm when there is excess solar generation and 1am when renewable energy supply is scarce.

    The introduction of REGO certificates presents an interesting opportunity, and a potential new revenue source, for BESS projects.

    More information on the GO Scheme can be found in our previous Insight.

    Revenue implications from AEMO’s market interventions

    Under the National Electricity Rules, AEMO has powers to issue mandatory ‘directions’ to registered participants in the NEM in relation to the operation of their facilities. This is not uncommon, and is primarily used by the market operator to manage periods of volatility in the market and maintain the reliability standard. Participants are subsequently reimbursed for their compliance via a well-established compensation framework administered by AEMO.

    AEMO has indicated that it intends to use its directions power on battery operators to address the increasingly commonplace minimum system load issues— eg by directing an operator to fully discharge batteries early in the morning and to hold the batteries at minimum charge during the morning, with the direction lifted in the early afternoon.

    However, there are growing concerns that this directions compensation model is not fit for purpose for standalone batteries and other energy storage technologies. The financial model for a standalone BESS is particularly reliant on taking advantage of exactly these periods of financial volatility in the market, and AEMO’s directions compensation framework may not be appropriate in providing adequate financial redress for the opportunity cost that is lost by virtue of being required to comply with an AEMO direction.

    Following the AEMC’s ‘Review into electricity compensation frameworks’, the final report for which was published in December 2024 and can be found here, we expect there to be continued discussions on this issue, to ensure that BESS operators are fairly compensated for AEMO’s market interventions.

    Vanadium flow as an emerging alternative to lithium-ion?

    As the BESS market expands, we expect to see competing technologies emerge as alternatives to lithium-ion batteries. The WA Government recently announced $150 million of funding to develop a 50MW / 500MWh vanadium flow battery (VFB) in Kalgoorlie, which would be Australia’s largest VFB. While VFBs have been mooted for a number of years as a potential utility-scale alternative to lithium-ion batteries, the first (and largest) ‘commercial’ VFB in Australia (a 2MW / 8MWh battery) was only commissioned in mid-2023, as part of the Spencer Energy Project.

    The key roadblocks to the widespread adoption of utility-scale VFBs seem to be higher upfront costs compared with lithium-ion batteries (vanadium is heavily used in steel refining, which creates price and supply chain volatility), and lower roundtrip efficiency of around 70–85% (compared with 90–95% for lithium-ion batteries).

    Despite this, VFBs seemingly provide a number of commercial benefits compared with lithium-ion batteries. In particular, VFBs offer longer storage duration (between 8–12 hours), and the theoretical ability to discharge completely and for an unlimited number of times without significant degradation (providing a much longer and consistent asset life). Further, VFBs are said to be safer (and fire resistant), and storage capacity can be easily increased by adding more electrolyte. At scale and over time, these benefits could help drive a significantly lower LCOE. The WA Government’s funding may be the catalyst to cut upfront costs and kickstart VFBs as a leading alternative to lithium-ion batteries.

    The continuing evolution

    As we look ahead, it is clear that 2025 promises to be another exciting year for the BESS sector. We expect to see more diverse, and growing, opportunities for battery projects, including across construction contracting, revenue structures, project and portfolio-based financing, and M&A. 

    If you would like to hear more about what we’re seeing in the market, please contact any of the team members below.

    MIL OSI News

  • MIL-OSI Security: Bible Hill — Missing person: Help the RCMP find Murdock “Kyle” MacKinnon

    Source: Royal Canadian Mounted Police

    Colchester County District RCMP is asking for the public’s assistance in locating 42-year-old Murdock “Kyle” MacKinnon. He was last seen in Bible Hill at the end of January.

    MacKinnon is described as 6-foot-0. He has brown hair. No clothing description is available.

    MacKinnon may be driving a black Ford Flex with a white top and Ontario licence plate CZZ C674.

    When someone goes missing, it has deep and far-reaching impacts for the person and those who know them. We ask that people spread the word through social media respectfully.

    Anyone with information on the whereabouts of Murdock “Kyle” MacKinnon is asked to contact Colchester County District RCMP at 902-893-6820 or the police of jurisdiction. To remain anonymous, call Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submit a secure web tip at www.crimestoppers.ns.ca, or use the P3 Tips app.

    MIL Security OSI

  • MIL-OSI USA: Shaheen Introduces Amendments to Budget Resolution that Would Protect Families and Businesses from Rising Prices, Keep Americans Safe and Lower Health Care Costs

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen

    (Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH), a top member of the U.S. Senate Appropriations and Armed Services Committees and Ranking Member of the U.S. Senate Foreign Relations Committee, will offer dozens of amendments to the budget resolution tonight that would help make health care more affordable, lower the costs of energy bills, protect American consumers and businesses from rising prices imposed by President Trump’s tariffs and keep Americans safe by enhancing military preparedness, strengthening our air traffic controller workforce and investing in the northern border. 

    “While some of my Republican colleagues seem set on using tonight’s process to carve out a path to give tax cuts to the wealthiest in the country on the backs of working Americans, I’m urging bipartisan cooperation on commonsense opportunities that would allow working families to keep more of their hard-earned money and enhance public safety,” said Shaheen. “We have a real opportunity to deliver lasting results for our constituents who are grappling with high costs—unfortunately, President Trump and Congressional Republicans are instead focusing on delivering a tax cut for the wealthiest while slashing programs millions rely on.” 

    Below is an overview of the dozens of amendments Senator Shaheen will offer for consideration tonight. 

    To help lower everyday costs, Shaheen will offer amendments that would: 

    • Support housing affordability by preventing construction cost increases due to tariffs and delays and expanding investment in housing development. 
    • Help households afford groceries, including preventing broad tariffs which would raise the price of food or cuts to food aid for families. 
    • Prevent funding cuts to child care or early childhood education programs helping New Hampshire families. 
    • Support affordable housing in disaster recovery by rebuilding with resilient and cost-effective methods, especially those that lower home insurance rates. 
    • Lower sugar prices for American businesses and consumers harmed by the U.S. sugar program. 

    To help make health care more affordable and accessible, Shaheen will offer amendments that would: 

    • Prioritize Affordable Care Act tax credits that give 22 million Americans access to affordable, quality health insurance. 
    • Ensure that Medicaid expansion programs aren’t eliminated by drastic cuts to federal funding, including New Hampshire’s Granite Advantage covering more than 60,000 Granite Staters. 
    • Ensure that patients suffering from diabetes do not face unnecessary barriers to care, including access to $35 insulin. 
    • Ensure hospitals and doctors working in rural areas can keep their doors open and continue providing lifesaving care for their patients. 
    • Ensure that our community health centers can continue to provide vital care to their patients. 

    To help enhance public safety and keep families secure, Shaheen will offer amendments that would: 

    • Make investments in the Air Traffic Controller workforce and overturn the reckless firing of hundreds of Federal Aviation Administration personnel critical to aviation safety. 
    • Improve cell service and communications for emergency services along the northern border. 
    • Ensure that DHS has the technology needed to monitor and defend the U.S.-Canada border against the flow of drugs and illegal migration. 
    • Raise pay for U.S. Bureau of Prisons correctional officers in New Hampshire and across the country. 
    • Preserve funding for programs that support survivors of sexual and domestic violence. 
    • Ensure local law enforcement agencies and communities are not left with the bill for unfunded federal mandates. 
    • Prioritize the deportation of undocumented individuals who pose threats to our national security or public safety. 
    • Ensure that increased funding for the U.S. Departments of Justice and Homeland Security is focused on stopping the flow of illegal drugs into the United States. 

    To help lower American households’ energy costs, Shaheen will offer amendments that would: 

    • Protect Americans from higher energy costs for gas, heating oil and propane due to broad tariffs. 
    • Protect bipartisan investments that lower energy costs, promote electric grid reliability and improve drinking water and wastewater infrastructure, including addressing PFAS contamination. 
    • Protect families, farmers and businesses from higher energy costs by ensuring energy saving and renewable energy projects funded by Congress continue. 
    • Prevent Congress from blocking state or local governments from updating their building codes to protect life and property, reduce losses from disasters or lower energy costs for families. 
    • Support energy efficient building construction and retrofits to lower energy costs and enhance electric grid reliability. 
    • Support resources that help make home heating more affordable, including energy assistance from the Low-Income Home Energy Assistance Program (LIHEAP) and weatherization. 

    To help bolster America’s national security and support American service members and their families, Shaheen will offer amendments that would: 

    • Support military service members, veterans and families, including by protecting family members who were recently fired from federal employment solely because they were new to a job. 
    • Replenish the defense industrial base ramping up to support Ukraine. 
    • Replenish the defense industrial base ramping up to support the defense of Taiwan. 
    • Ensure that the United States continues its commitments to NATO, which supports the collective defense of the United States. 
    • Resume U.S. foreign assistance that counters Chinese influence. 
    • Ensure that federal employees essential to national security are not impacted by the OMB buyout and federal hiring freeze memos. 
    • Require oversight over wasteful spending. 
    • Protect DoD’s policy that ensures service women receive the same coverage for contraception as civilian women. 
    • Ensure that service women, who are stationed in areas without access to reproductive care, through no fault of their own, can be reimbursed for the cost of travel. 
    • Ensure that U.S. farmers do not suffer economic harm due to the freeze on U.S. assistance. 
    • Protect U.S. small businesses and contractors from a pause on U.S. foreign assistance. 

    Additional amendments would: 

    • Prevent a reduction in postal service for rural America, including by preventing the closure of processing centers. 
    • Ensure that Americans are protected against fraud, price gouging and higher rental and housing prices caused by illegal price information sharing. 
    • Support funding to assist Afghan SIVs and refugee resettlement. 
    • Cut more than $40 billion in wasteful agriculture spending going to large corporate farm operations while preserving benefits to small family farms. 
    • Ensure strong funding for the Northern Border Regional Commission. 
    • Prevent adding $5 trillion of tax cuts to the national debt and raising interest rates when the Federal Government is already paying $1 trillion per year in interest. 
    • Support screening for Avian Flu both domestically and overseas. 

    MIL OSI USA News

  • MIL-OSI USA: Grassley, Klobuchar Seek to Increase Access to Affordable Prescription Drugs

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Sen. Chuck Grassley (R-Iowa), a senior member and former chairman of the Senate Finance Committee, joined Sen. Amy Klobuchar (D-Minn.) in reintroducing the Safe and Affordable Drugs from Canada Act. The bipartisan bill would allow Americans to safely import prescription drugs from Canada – lowering costs, increasing access and strengthening competition in the pharmaceutical market. 

    “Congress must take an all-of-the-above approach to lowering the price of prescription drugs. Our commonsense, bipartisan bill would provide Americans increased access to safe, affordable prescription drugs available in Canada, while boosting much-needed competition in the pharmaceutical industry,” Grassley said

    “Americans pay the highest prices in the world for prescription drugs,” Klobuchar said. “Our bipartisan legislation would save Americans money by allowing them to import their medications from pharmacies in Canada. Brand-name prescription drugs that we invent here in America cost more than twice as much in the United States as in Canada. Americans deserve better. Building on my legislation to allow Medicare to negotiate lower prescription drug costs, I will continue to work to increase competition in the pharmaceutical market so Americans no longer get ripped off by Big Pharma.” 

    Find bill text HERE. 

    Background:

    Lowering the cost of prescription drugs and increasing transparency in the pharmaceutical industry are among Grassley’s top priorities. This Congress, he introduced two bipartisan bills to shine light on the shady practices of pharmacy benefit managers (PBMs), as well as legislation to boost price transparency in prescription drug advertisements.  

    In 2017, Grassley urged the Department of Health and Human Services (HHS) to use its statutory authority under the Medicare Prescription Drug Improvement and Modernization Act of 2003 to fast-track the importation of prescription drugs from Canada under certain circumstances. In 2020, the first Trump administration finalized regulations and issued guidance allowing states and Indian Tribes to import prescription drugs from Canada under certain circumstances and with the U.S. Food and Drug Administration’s approval. Additionally, Grassley in 2021 sent a bipartisan letter to HHS highlighting his commitment to securing the importation of certain prescription drugs from Canada. 

    -30-

    MIL OSI USA News

  • MIL-OSI Submissions: Business – Valsoft Financial Services Portfolio Strengthened with the Acquisition of Digital Currency Systems

    Source: Valsoft Corporation Inc

    Montreal, Canada, February 20, 2025 – Valsoft Corporation Inc. (“Valsoft”), a Canadian company specializing in the acquisition and development of vertical market software businesses, is pleased to announce the acquisition of Digital Currency Systems (“DCS”), a leading provider of cash checking point-of-sale systems for the alternative financial services industry.

    DCS solutions and expertise, empower financial service businesses with turnkey solutions, helping them optimize operations and expand service offerings. Its extensive suite of products enables merchants to provide a wide array of financial services, including check cashing, bill payment, debit card loading, money transfer, and more.

    “Joining the Valsoft family is an exciting new chapter for DCS,” said Todd Gagerman, CEO of Digital Currency Systems. “For years, we have been committed to delivering best-in-class technology solutions to our customers. With Valsoft’s support, we look forward to accelerating our growth, enhancing our technology, and expanding our reach.”

    “DCS has built a strong reputation for innovation and customer service, and we are thrilled to welcome them to Valsoft,” said Antonino Piazza, Investment Partner at Valsoft. “This acquisition reinforces our commitment to investing in industry-leading software businesses and providing them with the resources to scale and thrive. We look forward to working alongside the DCS team to drive long-term growth and success.”

    With this latest acquisition, DCS becomes the fifth financial services company to join Valsoft’s portfolio and the second specializing in check-cashing software.  The DCS team remains committed to serving its customers while leveraging Valsoft’s global expertise and resources to drive future growth.

    About Digital Currency Systems

    Digital Currency Systems is a leading technology provider in the alternative financial services space. Merchants utilize their systems and industry knowledge to manage all aspects of providing services such as check cashing, bill payment, debit card loading, money transfer, and more. For more information: https://www.dcsorg.com/.

    About Valsoft
    Valsoft acquires and develops vertical market software companies that deliver mission-critical solutions. A key tenet of Valsoft’s philosophy is to invest in established businesses and foster an entrepreneurial environment that shapes a company into a leader in its respective industry. Unlike private equity and VC firms, Valsoft does not have a predefined investment horizon and looks to buy, hold, and create value through long-term partnerships with existing management and customers. Learn more at www.valsoftcorp.com.

    Valsoft was represented internally by David Felicissimo (General Counsel). Digital Currency Systems was represented by Faegre Drinker Biddle & Reath LLP.

    MIL OSI – Submitted News

  • MIL-OSI Canada: Prime Minister Justin Trudeau meets with premiers to discuss Canada-U.S. relations and Arctic security

    Source: Government of Canada – Prime Minister

    Today, Prime Minister Justin Trudeau, the Minister of National Defence, Bill Blair, Canada’s Ambassador to the United States, Kirsten Hillman, and Canada’s Fentanyl Czar, Kevin Brosseau, met virtually with Canada’s premiers to discuss Canada-U.S. relations and Arctic security.

    The Prime Minister updated the premiers on Canada’s fight against fentanyl and the continued implementation of Canada’s Border Plan since their last meeting on February 5. These measures include listing seven criminal organizations as terrorist entities; launching new anti-money laundering measures; tackling fentanyl trafficking; modernizing the regulatory framework for banning precursors to prevent their illegal importation and use; establishing a joint Canada-U.S. task force on organized crime; issuing a new intelligence directive on organized crime and fentanyl; and ensuring 24/7 surveillance of the border by deploying helicopters, drones, and 10,000 border personnel.

    The Prime Minister and the premiers discussed the evolving tariff threat from the U.S., including on aluminum and steel and the possibility of reciprocal tariffs. The premiers reflected on last week’s Council of the Federation mission to Washington, D.C., and shared takeaways from their meetings with U.S. partners. Federal, provincial, and territorial leaders agreed to continue their advocacy with U.S. partners to prevent the imposition of tariffs on Canadian goods, which threaten the well-being of families, workers, and businesses in Canada and the U.S. alike. The Prime Minister and the premiers discussed the progress being made to remove barriers to internal trade and labour mobility in Canada, which will make it easier to buy and sell Canadian goods within the country and help strengthen our economy. Team Canada is united in our commitment to protect Canadian jobs and defend Canada’s economic interests.

    The Prime Minister and Minister Blair shared updates on Arctic security, and invited the Premier of the Yukon, Ranj Pillai, to share his perspectives as Chair of the Northern Premiers’ Forum. The Prime Minister underscored that defending Canada’s sovereignty in the Arctic is essential to our national security, the defence of North America, and NATO’s core mission of collective defence and security. Minister Blair highlighted the Canadian Armed Forces’ important work to defend the Arctic and noted recent commitments to further strengthen Arctic security. Our North, Strong and Free, the $73 billion defence policy update the federal government launched in 2024, includes major investments in the North, such as airborne early warning and control aircraft, specialized maritime sensors, new tactical helicopters, a new satellite ground station in the Arctic, and Northern operational support hubs, in addition to a separate $38.6 billion investment in NORAD modernization.

    The Prime Minister thanked the premiers for their ongoing advocacy and emphasized that maintaining a united front will remain critical in the weeks ahead. The Prime Minister and the premiers expressed their gratitude for the leadership and service of the Premier of Prince Edward Island, Dennis King, and wished him well in his future endeavours.

    Associated Links

    MIL OSI Canada News

  • MIL-OSI: E Split Corp. Renews At-The-Market Equity Program

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) — (TSX: ENS, ENS.PR.A) E Split Corp. (the “Company”) is pleased to announce it has renewed its at-the-market equity program (“ATM Program”) that allows the Company to issue Class A and Preferred Shares (the “Class A Shares” and “Preferred Shares”, respectively) to the public from time to time, at the Company’s discretion. Any Class A Shares or Preferred Shares sold in the ATM Program will be sold through the Toronto Stock Exchange (the “TSX”) or any other marketplace in Canada on which the Class A Shares and Preferred Shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale.

    Sales of Class A Shares and Preferred Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated February 14, 2025 (the “Equity Distribution Agreement”) with National Bank Financial Inc. (the “Agent”). Sales of Class A Shares and Preferred Shares will be made by way of “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions on the TSX or on any marketplace for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred Shares will be distributed at the prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution.

    The ATM Program is being offered pursuant to a prospectus supplement dated February 14, 2025 to the Company’s short form base shelf prospectus dated February 12, 2025. The maximum gross proceeds from the issuance of the shares will be $200,000,000 for each of the Class A and Preferred Shares. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor or from representatives of the Agent and are available on SEDAR+ at www.sedarplus.ca.. The volume and timing of distributions under the ATM Program, if any, will be determined at the Company’s sole discretion. The ATM Program will be effective until March 13, 2027, unless terminated prior to such date by the Company.

    The Company intends to use the proceeds from the ATM Program in accordance with the investment objectives and investment strategies of the Company, subject to the investment restrictions of the Company. E Split Corp. invests in a portfolio comprised primarily of common shares of Enbridge Inc. (“Enbridge”), a leading North American oil and gas pipeline, gas processing, and natural gas distribution company. Middlefield Capital Corporation provides investment management advice to the Company.

    The investment objectives for the Class A Shares are to provide holders with non-cumulative monthly cash distributions and to provide holders with the opportunity for capital appreciation potential. The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.1750 per Preferred Share, and to return the original issue price to holders of Preferred Shares on June 30, 2028.

    For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.

    You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the funds. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

    Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “plans”, “estimates” or “intends” (or negative or grammatical variations thereof), or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, many of which are beyond the control of the funds. Investors should not place undue reliance on forward-looking statements.

    The MIL Network

  • MIL-OSI: Real Estate Split Corp. Renews At-The-Market Equity Program

    Source: GlobeNewswire (MIL-OSI)

    Not for distribution to U.S. Newswire Services or for dissemination in the United States.

    TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) — (TSX: RS, RS.PR.A) Real Estate Split Corp. (the “Company”) is pleased to announce it has renewed its at-the-market equity program (“ATM Program”) that allows the Company to issue Class A and Preferred Shares (the “Class A Shares” and “Preferred Shares”, respectively) to the public from time to time, at the Company’s discretion. Any Class A Shares or Preferred Shares sold in the ATM Program will be sold through the Toronto Stock Exchange (the “TSX”) or any other marketplace in Canada on which the Class A Shares and Preferred Shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale.

    Sales of Class A Shares and Preferred Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated February 14, 2025 (the “Equity Distribution Agreement”) with National Bank Financial Inc. (the “Agent”). Sales of Class A Shares and Preferred Shares will be made by way of “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions on the TSX or on any marketplace for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred Shares will be distributed at the prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution.

    The ATM Program is being offered pursuant to a prospectus supplement dated February 14, 2025 to the Company’s short form base shelf prospectus dated February 12, 2025. The maximum gross proceeds from the issuance of the shares will be $75,000,000 for each of the Class A and Preferred Shares. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor or from representatives of the Agent and are available on SEDAR+ at www.sedarplus.ca. The volume and timing of distributions under the ATM Program, if any, will be determined at the Company’s sole discretion. The ATM Program will be effective until March 13, 2027, unless terminated prior to such date by the Company.

    The Company intends to use the proceeds from the ATM Program in accordance with the investment objectives and investment strategies of the Company, subject to the investment restrictions of the Company. Real Estate Split Corp. has been designed to provide investors with a diversified, actively managed, high conviction portfolio comprised of issuers operating in the real estate or related sectors, including real estate investment trusts, that are engaged in E-Commerce, data infrastructure as well as the multi-family, retail, office and healthcare sectors. Middlefield Capital Corporation provides investment management advice to the Company.

    The investment objectives for the Class A Shares are to provide holders with non-cumulative monthly cash distributions and to provide holders with the opportunity for capital appreciation potential. On August 17, 2021, the monthly cash distribution was increased to $0.13 per Class A Share from $0.10 per Class A Share. The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.13125 per Preferred Share, and to return the original issue price to holders of Preferred Shares on December 31, 2025.

    For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.

    You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the funds. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

    Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “plans”, “estimates” or “intends” (or negative or grammatical variations thereof), or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, many of which are beyond the control of the funds. Investors should not place undue reliance on forward-looking statements.

    The MIL Network

  • MIL-OSI USA: Kaine Files Amendments to Republican Budget Resolution

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine
    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA), a member of the Senate Budget Committee, filed amendments to the Senate Republicans’ budget resolution in an attempt to improve the bill, which currently tees up tax cuts for billionaires by cutting critical funding for programs that Virginians rely on. Republicans are using a legislative process known as “reconciliation,” which allows certain legislation to be expedited and passed in the Senate by a simple majority, avoiding the 60-vote threshold needed for most other legislation. The Senate will begin consideration of the budget resolution later today.
    “I’d like to focus on cutting taxes for the middle-class. Unfortunately, Republicans disagree. Instead, they are coming after your Medicaid and Medicare benefits, your health care, education programs, and other critical funding that Virginians rely on so that they can tee up their tax cuts for billionaires. I’m filing several amendments to safeguard Virginians from President Trump’s proposed tariffs, which would raise costs; protect federal employees who provide essential services to millions of Americans; prevent cuts in funding for community health centers and national security programs; and more. I will be pushing to get votes on my amendments and will do everything I can to stop Republicans from passing policies that hurt Virginians and our economy and make us less safe,” Kaine said.
    Kaine filed a series of amendments, including:
    To cut taxes for middle-class Americans.
    To protect Americans from new, senseless taxes by preventing abuse of emergency authorities to launch trade wars with Canada and Mexico.
    To prevent cuts to federal funding for air traffic safety.
    To prevent the Department of Veterans’ Affairs from reducing its workforce below levels needed to staff and provide services at new or remodeled facilities.
    To prohibit funding for agency efforts to reclassify federal employees in the civil service outside of any schedule not currently in the competitive service.
    To prevent federal agencies and departments from terminating, rescheduling, or furloughing federal workers who are also veterans.
    To prevent federal employees in harm’s way overseas from losing critical protections.
    To protect Federal Bureau of Investigation (FBI) agents and federal prosecutors from political retribution.
    To deny access to classified materials to anyone without a proper security clearance.
    To protect Virginians who receive health insurance coverage through Medicaid expansion.
    To protect rural hospitals from cuts that would threaten rural communities’ access to health care.
    To protect access to health care services provided by Federally Qualified Health Centers.
    To ensure working families are able to access affordable and high-quality child care.
    To prevent a reduction of programs that support high-quality teacher and school leader preparation.
    To protect seniors and people with disabilities who use long-term services and supports.
    To prevent reductions in staff at the Mine Safety and Health Administration, who ensure miners do not get hurt or die on the job.
    To undo the harm that the January federal funding freeze did to Head Start programs.
    To protect the Pell Grant program from facing cuts or changes to the program that will hurt low- and middle-income students most.
    To prohibit termination of national security programming implemented by the U.S. Agency for International Development (USAID).
    To prohibit termination of foreign assistance contracts with U.S. farmers or with faith-based organizations.
    To prohibit funding for a new Middle East war in Gaza or appeasement of Russia in Ukraine.
    To prevent cuts to the Public Service Loan Forgiveness program.
    To prevent cuts to voluntary conservation agriculture programs.
    To ensure that much-needed funding comes to Virginia to repair federally maintained trails—such as the Virginia Creeper Trail—impacted by natural disasters in 2024.
    To prohibit any efforts to privatize or defund the United States Postal Service.
    Kaine has spoken out against Republicans’ proposal on the Senate floor and during a Senate Budget Committee markup.
    President Donald Trump and Republicans in Congress are currently negotiating an extension to Trump’s 2017 tax law, which cut taxes for large corporations and the highest-income earners and substantially increased the federal deficit. They are now proposing broad-based tariffs and massive, across-the-board cuts to federal programs like Medicaid to fund these tax cuts for billionaires. Tax estimates have shown that if fully enacted, Trump’s tariffs could raise costs by $2,500 to nearly $4,000 per household, and American consumers could lose between $46 billion to $78 billion in spending power each year.

    MIL OSI USA News

  • MIL-OSI Canada: Statement Thanking P.E.I. Premier Dennis King for his Service

    Source: Government of Canada regional news

    NOTE: The following is a statement from Premier Tim Houston. Premier King has announced he will leave office Friday, February 21.

    Premier King has been a passionate defender of Prince Edward Island, an outstanding partner in Atlantic Canada, and to me, a good friend. I’m proud of our work together on the Council of Atlantic Premiers, where in 2023, we created the Atlantic Physician Registry. Atlantic physicians are now able to practise in any other Atlantic province by opting in to the Atlantic Physician Registry.

    Premier King was a steady hand in P.E.I. through difficult times, and our region is thankful for his service.

    I wish Dennis, Jana and his family all the best.

    MIL OSI Canada News

  • MIL-OSI Canada: Prime Minister Justin Trudeau speaks with Prime Minister of Italy Giorgia Meloni

    Source: Government of Canada – Prime Minister

    Today, Prime Minister Justin Trudeau spoke with the Prime Minister of Italy, Giorgia Meloni.

    The two leaders highlighted the strong collaboration between Canada and Italy on a range of shared priorities, such as addressing global challenges and opportunities as G7 partners and allies, including in the context of Canada’s G7 Presidency this year.

    Prime Minister Trudeau and Prime Minister Meloni discussed their unwavering support for a just and sustainable peace in Ukraine.

    The prime ministers also spoke about the latest developments in Syria. They stressed the importance of an inclusive Syrian-led political governance structure for the country and expressed hope for a transparent and accountable Syrian government that respects the rule of law and upholds universal human rights.

    Prime Minister Trudeau and Prime Minister Meloni highlighted the strong bilateral relationship between Canada and Italy, including on trade and investment. They agreed to remain in close contact.

    Associated Links

    MIL OSI Canada News

  • MIL-OSI Global: Moves to undermine public education in the U.S. should concern Canadians

    Source: The Conversation – Canada – By Melanie D. Janzen, Professor, Faculty of Education, University of Manitoba

    United States President Donald Trump has made a series of high-profile threats against Canada and other countries since his second term began a month ago — but his proposed educational reforms also require serious attention.

    Trump has promised to close the Department of Education, which enforces civil rights in education, sends funding to schools and oversees student loans.

    The Associated Press reported the president’s pick for education secretary, Linda McMahon, has acknowledged that only the U.S. Congress could fully shut down the education department, but she wants to “reorient” it.

    McMahon is expected to be confirmed after her nomination is considered by the full Senate.

    The Legal Defense Fund, an organization that supports racial justice, has expressed concern that McMahon will support reduced federal oversight that will result in undermining civil rights protections and key federal programs.




    Read more:
    Why does Trump want to abolish the Education Department? An anthropologist who studies MAGA explains 4 reasons


    Moves to weaken public education in the United States may seem distant. However, as Canadians have seen with polarization affecting democratically elected school boards, shifts in the U.S. can act like canaries in the coal mine for our own public education systems.

    We address this as researchers and educators whose combined expertise has examined how defunding and policy interventions can erode public education.

    Project 2025 and education

    In recent years, there has been escalating hype that public schools have become sites of political proselytizing as alleged “woke” teachers aim to instil “Marxist attitudes” among youth.

    Trump has, unfortunately, concertedly stoked flames of distrust, particularly among MAGA movement supporters, toward teachers, administrators, curricula and public educational systems.

    The now infamous Project 2025 policy framework has a dedicated chapter outlining drastic educational reformation in the U.S.

    While the president publicly disavowed any formal affiliation with Project 2025, his positions formally outlined in his Agenda 47 Ten Principles for Great Schools Leading to Great Jobs and other public statements are generally indistinguishable from those espoused by Project 2025.




    Read more:
    Trump’s administration seems chaotic, but he’s drawing directly from Project 2025 playbook


    Trump’s 10 Principles

    The 10 principles for educational revision include “restoring parental rights” by allowing parents to vote to appoint local school principals; abolishing teacher tenure, which will undermine teachers’ unions; and introducing merit pay. In addition, there are plans to “create a credentialing body to certify teachers who embrace patriotic values and support the American Way of Life.”

    Trump also aims to bar critical race theory and “gender indoctrination” from public schools. During campaign events, Trump often reiterated his goals to “cut federal funding for any school pushing critical race theory … and other inappropriate racial, sexual or political content ….”

    These ideas have been steadily infiltrating some states’ legislative and school policies. An example is Florida’s re-framing of academic standards to teach that some enslaved people benefited from enslavement. The non-profit Human Rights Campaign Foundation notes that that “of the 489 anti-LGBTQ+ bills introduced in 2024, over 60 per cent — more than 300 bills — focused on youth and education.”

    Smilar attacks seen in Canada

    Trump declared during his inauguration speech that “we have an education system that teaches our children to be ashamed of themselves — in many cases, to hate our country … All of this will change starting today, and it will change very quickly.”

    Evidently, significant educational reform is a high priority.

    Reforms to the American education system should be cause for concern for Canadians. The overt attacks on public education that we are seeing in the U.S. are already occurring in Canada, albeit often in more insidious and fragmented ways.

    Parental rights rhetoric

    “Parental rights” rhetoric is fuelling movements across Canada that are aimed at delimiting the rights of students to learn about sexual health and understand gender diversity.

    Parents have a multitude of diverse concerns for their children and their interests, and parental engagement is of importance for schools.




    Read more:
    If I could change one thing in education: Community-school partnerships would be top priority


    But these “rights”-based movements fuel public moral panic and fan the flames of neo-conservative agendas.
    The “parental rights” movement capitalizes on rights rhetoric to mobilize only the concerns of the conservative right and their traditional family narratives. This denies other parents’ concerns, and as child advocates have argued, it also violates children’s rights.

    The parental rights movement also aims to undermine school-based sexual health education, which most parents support.

    Across provinces

    In 2023, Saskatchewan passed a Parents’ Bill of Rights requiring parental consent for children under the age of 16 to use a different pronoun or name in school.

    The Saskatchewan Human Rights Commission and numerous professors of law denounced the move for pre-emptively using the notwithstanding clause to override rights upheld in the Canadian Charter of Rights and Freedoms.

    We saw similar efforts in New Brunswick and in Manitoba in governing parties’ platforms and recent unsuccessful re-election campaigns.




    Read more:
    New Brunswick’s LGBTQ+ safe schools debate makes false opponents of parents and teachers


    This year, Alberta introduced a more expansive bill banning gender-affirming care for children under the age of 16 and banning trans women and girls from competing in female sports.

    The parental rights rhetoric, a dog-whistle for anti-2SLGBTQ+ views, is not new in Canada. However, it seems to be finding renewed energy, especially in conservative-led provinces.

    Anti-2SLGBTQ+ rhetoric can also found in recent attempts to advocate for book bans (like in Chilliwack B.C. and in Manitoba in 2022) or in protests against Drag Queen story hours (in Ontario in 2023).




    Read more:
    Shifts in how sex and gender identity are defined may alter human rights protections: Canadians deserve to know how and why


    There have also been efforts by national neoconservative organizations to interfere with school board elections, endeavouring to recruit and support anti-trans candidates to run for office.

    Undermining teachers and unions

    Similarly, attempts to undermine teachers and their unions are occurring.

    For example, the Manitoba government recently passed Bill 35. The legislation was introduced under the premise of addressing teacher sexual misconduct, but the bill’s language was broadened to include teacher “competence” and “professionalism.”

    A similar bill was recently passed in Alberta.

    In both examples, governments say they are creating an “arms-length” disciplinary process for teachers. But these reforms have been criticized for weakening teachers’ unions, deprofessionalizing teaching and conflating competence and misconduct — all of which work to expand government regulation and oversight of teachers while undermining unions.

    In Ontario, in 2022 following concerning pandemic interruptions to in-person schooling, the government implemented a mandatory online learning graduation requirement. Procedures exist for students to be opted out, but it’s up to parents or students to specifically request this.

    The requirement has been criticized for reducing teaching staff and increasing the privatization of public schools.

    Strong public schools

    Strong public schools rely on qualified teachers whose professional judgment and autonomy is protected and supported, in part, by teacher unions.

    The events unfolding in the U.S. should act as a warning to Canadians, calling us to pay close attention to what is happening in our local school districts and school boards.

    Being able to understand and identify regressive reform efforts and how they are subverting public education and democracy — as we endeavour to foster and build real relationships in our local school communities — is of urgent and national concern.

    Melanie D. Janzen receives funding from Social Sciences and Humanities Research Council and is a volunteer for People for Public Education Manitoba.

    Jordan Laidlaw is a volunteer for People for Public Education Manitoba.

    ref. Moves to undermine public education in the U.S. should concern Canadians – https://theconversation.com/moves-to-undermine-public-education-in-the-u-s-should-concern-canadians-245230

    MIL OSI – Global Reports

  • MIL-OSI: MINILUXE ANNOUNCES NORMAL COURSE ISSUER BID

    Source: GlobeNewswire (MIL-OSI)

    Boston, MA, Feb. 20, 2025 (GLOBE NEWSWIRE) — MiniLuxe Holding Corp. (TSXV: MNLX) (“MiniLuxe” or the “Company”) announces today, as an update to its press release dated February 11, 2025, its intent to commence a normal course issuer bid through the facilities of the TSX Venture Exchange (the “TSXV“) to repurchase, for cancellation, up to 2,000,000 Class A subordinate voting shares of the Company, representing less than 3% of the Company’s presently issued and outstanding Class A subordinate voting shares (the “NCIB“). The NCIB remains subject to the final approval of the TSXV.

    The NCIB will now commence on February 25, 2025 and will terminate upon the earliest of (i) the Company purchasing 2,000,000 Class A subordinate voting shares, (ii) the Company providing notice of termination of the NCIB, and (iii) February 24, 2026. Under the NCIB, the Company may not acquire more than 2% of its issued and outstanding subordinate voting shares in any 30-day period.

    The Company believes that, from time to time, the market price of its Class A subordinate voting shares does not adequately reflect the Company’s underlying value and prospects and that, at such times, the purchase of the Company’s Class A subordinate voting shares represents an appropriate use of the Company’s financial resources and will enhance shareholder value.

    The Company has engaged Ventum Financial Corp. to act as its broker for the NCIB (the “Broker“). Trades made pursuant to the NCIB will be made on an as-directed basis, and the Company will not enter into an automatic share purchase plan entered into with the Broker. The NCIB will be made through the facilities of the TSXV and/or alternative authorized Canadian trading systems, and the purchase and payment for the Class A subordinate voting shares will be made from the Company’s existing working capital at the market price of the applicable securities at the time of acquisition, plus brokerage fees, if any, charged by the Broker. All Class A subordinate voting shares purchased by the Company under the NCIB will be cancelled.

    To the Company’s knowledge, none of the directors, senior officers or insiders of the Company, or any associate of such person, or any associate or affiliate of the Company, has any present intention to sell any securities to the Company during the course of the NCIB. The Company completed a normal course issuer bid on September 20, 2023, under which the Company purchased 63,500 Class A subordinate voting shares at an average price of $0.444 per share, for an aggregate purchase price of $28,213. The Company also completed a normal course issuer bid on December 4, 2024, under which the Company purchased 46,700 Class A subordinate voting shares at an average price of $0.40 per share, for an aggregate purchase price of $18,680.

    A copy of the Form 5G – Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSXV in respect of the NCIB can be obtained from the Company upon request without charge.

    About MiniLuxe

    MiniLuxe, a Delaware corporation based in Boston, Massachusetts. MiniLuxe is a lifestyle brand and talent empowerment platform servicing the beauty and self-care industry. Through its company-owned and partner-operated studios, Company delivers high-quality nail care and esthetic services that incorporate the brand’s proprietary products. For over a decade, MiniLuxe has been elevating industry standards through healthier, ultra-hygienic services, modern design, ethical labor practices, and better-for-you, cleaner products. MiniLuxe’s vision is to radically transform the highly fragmented and under-regulated self-care and nail care industry through its brand, standards, and technology platform that together enable better talent and client experiences.

    Towards building long-term durable value for its stakeholders, MiniLuxe is expanding its reach through franchising and operating JV partners seeking ownership and impact with a brand recognized as the best nail salon franchise. Through self-care and self-expression, MiniLuxe is empowering one of the largest hourly work forces through professional development, economic mobility, and equity ownership. Since its founding, MiniLuxe has performed over 4.5 million services.

    For further information

    Christine Mastrangelo
    Investor Relations, MiniLuxe Holding Corp.
    cmastrangelo@MiniLuxe.com
    MiniLuxe.com

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network

  • MIL-OSI Canada: Growing Alberta’s presence in the Middle East

    Source: Government of Canada regional news (2)

    MIL OSI Canada News

  • MIL-OSI: illumin Holdings Inc. announces date for Fourth Quarter and Year-End 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO and NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) — illumin Holdings Inc. (TSX: ILLM, OTCQB:ILLMF) (“illumin” or “Company”), a leader in digital advertising technology that empowers marketers to make smarter decisions about communicating with online consumers, announces that it will report its fourth quarter and year-end 2024 financial results before market open on Friday, March 14, 2025.

    Investors and analysts are invited to join a live webcast on Friday, March 14, 2025, at 8:30 AM ET, where CEO Simon Cairns and CFO Elliot Muchnik will discuss illumin’s Fourth Quarter and Year-End 2024 results, followed by a question-and-answer session.

    Conference Call Details:

    To register for the conference call webcast and presentation, please visit: https://events.illumin.com/q4-2024-earnings-call

    Please connect at least 15 minutes prior to ensure time for any software download that may be needed to hear the webcast.

    A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information/.

    About illumin:

    illumin is evolving the digital advertising landscape by empowering marketers to achieve transformative results through its customer-centric approach. Featuring a unified canvas built around the open web, illumin lets brands and agencies seamlessly plan, build, and execute campaigns across the entire marketing funnel—connecting programmatic channels, email, and social media within a single platform. Headquartered in Toronto, Canada, illumin serves clients across North America, Latin America, and Europe. For more information, visit illumin.com.

    For further information, please contact.

      Steve Hosein David Hanover
      Investor relations Investor Relations – U.S.
      illumin Holdings Inc. KCSA Strategic Communications
      416-218-9888 x5313 212-896-1220
      investors@illumin.com     dhanover@kcsa.com


    Disclaimer in regard to Forward-looking Statements

    Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Investors are cautioned not to put undue reliance on forward-looking statements.  Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

    The MIL Network

  • MIL-OSI: CarGurus Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Q4’24 Marketplace revenue grew 15% YoY

    Q4’24 International revenue grew 26% YoY and OEM Advertising revenue grew double-digit YoY

    Q4’24 Consolidated GAAP Net Income of $45.9 million; Q4’24 Non-GAAP Consolidated Adjusted EBITDA of $76.4 million, up 25% YoY

    BOSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, today announced financial results for the fourth quarter and year ended December 31, 2024.

    “We delivered exceptional results in 2024, with sustained revenue acceleration and significant margin expansion across geographies. Our Marketplace business achieved double-digit growth, driven by continued migration to premium tiers, strong OEM advertising demand, and growing adoption of our value-added products and services,” said Jason Trevisan, Chief Executive Officer at CarGurus. “Our relentless focus on product innovation and our ability to enhance dealers’ ROI throughout their workflow resulted in higher engagement and increased wallet share as dealers consolidate their investment with the highest-yielding online marketplaces. Looking ahead to 2025, we are excited about the opportunity to further consolidate our leadership position, leveraging our data-driven actionable insights and our unique ability to deliver dealer-specific competitive intelligence.”

    Fourth Quarter and Full Year Financial Highlights

        Three Months Ended     Year Ended  
        December 31, 2024     December 31, 2024  
        Results
    (in millions)
        Variance from Prior Year     Results
    (in millions)
        Variance from Prior Year  
    Revenue                        
    Marketplace Revenue   $ 210.2       15 %   $ 796.6       14 %
    Wholesale Revenue     9.9       (55 )%     51.2       (49 )%
    Product Revenue     8.5       (55 )%     46.6       (60 )%
    Total Revenue   $ 228.5       2 %   $ 894.4       (2 )%
                             
    Gross Profit (1)   $ 199.0       18 %   $ 738.9       13 %
    % Margin     87 %   1,176 bps       83 %   1,136 bps  
                             
    Operating Expenses (2)   $ 145.7       (23 )%   $ 725.5       17 %
                             
    GAAP Consolidated Net Income (3)   $ 45.9     NM(5)     $ 21.0       (5 )%
    % Margin     20 %   NM(5)       2 %   (7) bps  
                             
    Non-GAAP Consolidated Adjusted EBITDA (4)   $ 76.4       25 %   $ 247.2       26 %
    % Margin (4)     33 %   602 bps       28 %   623 bps  
                             
    Cash, Cash Equivalents, and Short-Term Investments   $ 304.2       (3 )%   $ 304.2       (3 )%

    (1)  During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $9.9 million impairment-related charge in cost of revenue.
    (2)  During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $134.5 million impairment-related charge in operating expenses.
    (3)  During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $144.4 million impairment-related charge.
    (4)  For more information regarding our use of non-GAAP Consolidated Adjusted EBITDA and other non-GAAP financial measures, please see the reconciliations of GAAP financial measures to non-GAAP financial measures and the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.
    (5)  Not meaningful.

        Three Months Ended     Year Ended  
        December 31, 2024     December 31, 2024  
        Results     Variance from Prior Year     Results     Variance from Prior Year  
    Key Performance Indicators (1)                        
    U.S. Paying Dealers (2)     24,692       2 %     24,692       2 %
    International Paying Dealers (2)     7,318       11 %     7,318       11 %
    Total Paying Dealers (2)     32,010       3 %     32,010       3 %
                             
    U.S. QARSD (2)   $ 7,337       12 %   $ 7,337       12 %
    International QARSD (2)   $ 2,072       17 %   $ 2,072       17 %
    Consolidated QARSD (2)   $ 6,144       12 %   $ 6,144       12 %
                             
    Transactions     7,066       (48 )%     34,395       (47 )%
                             
    U.S. Average Monthly Unique Users (in millions) (3)     29.3     N/A(5)     N/A(5)     N/A(5)  
    U.S. Average Monthly Sessions (in millions) (3)     74.6     N/A(5)     N/A(5)     N/A(5)  
                             
    International Average Monthly Unique Users (in millions) (3)     9.1     N/A(5)     N/A(5)     N/A(5)  
    International Average Monthly Sessions (in millions) (3)     19.2     N/A(5)     N/A(5)     N/A(5)  
                             
    Segment Reporting (in millions)                        
    U.S. Marketplace Segment Revenue   $ 193.4       15 %   $ 733.7       13 %
    U.S. Marketplace Segment Operating Income   $ 56.1       30 %   $ 182.7       43 %
    Digital Wholesale Segment Revenue   $ 18.3       (55 )%   $ 97.8       (55 )%
    Digital Wholesale Segment Operating Loss (4)   $ (5.5 )   NM(6)     $ (179.3 )   NM(6)  

    (1)  For more information regarding our use of Key Performance Indicators, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.
    (2)  Metrics presented as of December 31, 2024.
    (3)  CarOffer website is excluded from the metrics presented for users and sessions.
    (4)  During the three months ended December 31, 2024, no impairment was recorded. During the year ended December 31, 2024, we recorded a $144.4 million impairment-related charge.
    (5)  As a result of the change from Google Universal Analytics (“Google Analytics”) to Google Analytics 4 (“GA4”) on July 1, 2024, we are unable to provide comparable monthly unique users or monthly sessions information for this period. For more information regarding the change in methodology for monthly unique users or monthly sessions, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.
    (6)  Not meaningful.

    First Quarter 2025 Guidance

    The table below provides CarGurus’ guidance, which is based on recent market trends, industry conditions, and management’s expectations and assumptions as of today.

      Guidance Metrics Range
      Total revenue $216 million to $236 million
      Marketplace revenue $209 million to $214 million
      Non-GAAP Consolidated Adjusted EBITDA $60 million to $68 million
      Non-GAAP EPS $0.41 to $0.47

    The first quarter 2025 non-GAAP EPS calculation assumes 107.0 million diluted weighted-average common shares outstanding.

    The assumptions that are built into guidance for the first quarter 2025 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions. Guidance for the first quarter 2025 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers. Guidance also excludes any potential impact of future foreign currency exchange gains or losses.

    CarGurus has not reconciled its guidance of non-GAAP consolidated adjusted EBITDA to GAAP consolidated net income or non-GAAP EPS to GAAP EPS because reconciling items between such GAAP and non-GAAP financial measures, which include, as applicable, stock-based compensation, amortization of intangible assets, impairment, depreciation expenses, non-intangible amortization, transaction-related expenses, other income, net, the provision for income taxes, and income tax effects, cannot be reasonably predicted due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, and therefore cannot be determined without unreasonable effort.

    Conference Call and Webcast Information

    CarGurus will host a conference call and live webcast to discuss its fourth quarter and full year 2024 financial results and business outlook at 5:00 p.m. Eastern Time today, February 20, 2025. To access the conference call, dial (877) 451-6152 for callers in the U.S. or Canada, or (201) 389-0879 for international callers. The webcast will be available live on the Investors section of CarGurus’ website at https://investors.cargurus.com.

    An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time today, February 20, 2025, until 11:59 p.m. Eastern Time on March 6, 2025, by dialing (844) 512-2921 for callers in the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 13750508. In addition, an archived webcast will be available on the Investors section of CarGurus’ website at https://investors.cargurus.com.

    About CarGurus

    CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*

    CarGurus also operates online marketplaces under the CarGurus brand in Canada and the U.K. In the U.S. and the U.K., CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

    To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.

    *Source: Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings
    (defined as CARFAX Total visits minus Vehicle History Reports traffic), Q4 2024, U.S.

    CarGurus® and Autolist® are each a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. PistonHeads® is a registered trademark of CarGurus Ireland Limited in the United Kingdom and the European Union. All other product names, trademarks, and registered trademarks are property of their respective owners.

    © 2025 CarGurus, Inc., All Rights Reserved.

    Cautionary Language Concerning Forward-Looking Statements

    This press release includes forward-looking statements. Other than statements of historical facts, all statements contained in this press release, including statements regarding our future financial and operating results; our first quarter 2025 financial and business performance, including guidance; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and efficiently; our capital allocation and investment strategy; the attractiveness and value proposition of our current offerings and other product opportunities; our ability to maintain existing and acquire new customers; addressable opportunities; our expectation that we will continue to invest in growth initiatives; our ability to quickly make transformations necessary for our business to achieve long-term goals; and the impact of macro-level issues on our industry, business, and financial results, are forward-looking statements. The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “guidance,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “target,” “will,” “would,” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. You should not rely upon forward-looking statements as predictions of future events.

    These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including risks related to our growth and our ability to grow our revenue; our relationships with dealers; competition in the markets in which we operate; market growth; our ability to innovate; our ability to realize benefits from our acquisitions and successfully implement the integration strategies in connection therewith; impairment of the carrying value of our goodwill, intangible assets, right-of-use assets, or other assets; increased inflation and interest rates, global supply chain challenges, and other macroeconomic issues; changes in our key personnel; natural disasters, epidemics, or pandemics; and our ability to operate in compliance with applicable laws as well as other risks and uncertainties as may be detailed from time to time in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other reports we file with the U.S. Securities and Exchange Commission. Moreover, we operate in very competitive and rapidly changing environments. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee that future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

    Investor Contact:
    Kirndeep Singh
    Vice President, Head of Investor Relations
    investors@cargurus.com

    Media Contact:
    Maggie Meluzio
    Director, Public Relations and External Communications
    pr@cargurus.com

    Unaudited Condensed Consolidated Balance Sheets
    (in thousands, except share and per share data)

        As of December 31,  
        2024     2023  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 304,193     $ 291,363  
    Short-term investments           20,724  
    Accounts receivable, net of allowance for doubtful accounts of $788 and $610, respectively     44,248       39,963  
    Inventory     338       331  
    Prepaid expenses, prepaid income taxes and other current assets     27,868       25,152  
    Deferred contract costs     12,523       11,095  
    Restricted cash     2,036       2,563  
    Total current assets     391,206       391,191  
    Property and equipment, net     130,010       83,370  
    Intangible assets, net     11,767       23,056  
    Goodwill     46,167       157,898  
    Operating lease right-of-use assets     121,484       169,682  
    Deferred tax assets     106,672       73,356  
    Deferred contract costs, net of current portion     13,196       12,998  
    Other non-current assets     4,034       7,376  
    Total assets   $ 824,536     $ 918,927  
    Liabilities, redeemable noncontrolling interest and stockholders’ equity            
    Current liabilities:            
    Accounts payable   $ 26,410     $ 47,854  
    Accrued expenses, accrued income taxes and other current liabilities     35,975       33,718  
    Deferred revenue     21,661       21,322  
    Operating lease liabilities     9,005       12,284  
    Total current liabilities     93,051       115,178  
    Operating lease liabilities     183,739       182,106  
    Deferred tax liabilities     26       58  
    Other non–current liabilities     6,031       4,733  
    Total liabilities     282,847       302,075  
    Stockholders’ equity:            
    Preferred stock, $0.001 par value per share; 10,000,000 shares authorized;
    no shares issued and outstanding
               
    Class A common stock, $0.001 par value per share; 500,000,000 shares
    authorized; 89,002,571 and 92,175,243 shares issued and outstanding at
    December 31, 2024 and 2023, respectively
        89       92  
    Class B common stock, $0.001 par value per share; 100,000,000 shares
    authorized; 14,986,745 and 15,999,173 shares issued and outstanding at
    December 31, 2024 and 2023, respectively
        15       16  
    Additional paid–in capital     169,013       263,498  
    Retained earnings     375,119       354,147  
    Accumulated other comprehensive loss     (2,547 )     (901 )
    Total stockholders’ equity     541,689       616,852  
    Total liabilities, redeemable noncontrolling interest and stockholders’ equity   $ 824,536     $ 918,927  

    Unaudited Condensed Consolidated Income Statements
    (in thousands, except share and per share data)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Revenue                        
    Marketplace   $ 210,194     $ 182,250     $ 796,599     $ 698,236  
    Wholesale     9,850       22,035       51,201       100,908  
    Product     8,494       18,838       46,584       115,098  
    Total revenue     228,538       223,123       894,384       914,242  
    Cost of revenue(1)                        
    Marketplace     13,899       14,190       54,950       60,020  
    Wholesale(2)     7,068       22,286       54,340       90,066  
    Product     8,582       18,612       46,149       112,702  
    Total cost of revenue     29,549       55,088       155,439       262,788  
    Gross profit     198,989       168,035       738,945       651,454  
    Operating expenses:                        
    Sales and marketing     76,448       73,827       322,249       304,070  
    Product, technology, and development     35,948       36,737       144,432       146,169  
    General and administrative     28,384       75,667       112,066       152,757  
    Impairment                 134,501        
    Depreciation and amortization     4,931       4,069       12,285       15,831  
    Total operating expenses     145,711       190,300       725,533       618,827  
    Income (loss) from operations     53,278       (22,265 )     13,412       32,627  
    Other income, net:                        
    Interest income     3,126       5,093       12,189       18,430  
    Other (expense) income, net     (1,066 )     782       (944 )     630  
    Total other income, net     2,060       5,875       11,245       19,060  
    Income (loss) before income taxes     55,338       (16,390 )     24,657       51,687  
    Provision for income taxes     9,457       6,213       3,685       29,634  
    Consolidated net income (loss)     45,881       (22,603 )     20,972       22,053  
    Net loss attributable to redeemable noncontrolling interest           (4,698 )           (14,889 )
    Net income (loss) attributable to CarGurus, Inc.   $ 45,881     $ (17,905 )   $ 20,972     $ 36,942  
    Deemed dividend on redemption of noncontrolling interest           5,838             5,838  
    Net income (loss) attributable to common stockholders   $ 45,881     $ (23,743 )   $ 20,972     $ 31,104  
    Net income (loss) per share attributable to common stockholders:                        
    Basic   $ 0.44     $ (0.21 )   $ 0.20     $ 0.27  
    Diluted   $ 0.43     $ (0.21 )   $ 0.20     $ 0.19  
    Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders:                        
    Basic     103,838,821       110,988,515       104,535,572       113,240,139  
    Diluted     106,116,888       110,988,515       106,263,886       114,188,834  

    (1)  For the three months ended December 31, 2024 and 2023 and for the years ended December 31, 2024 and 2023, there was depreciation and amortization of $2,107, $8,692, $13,075, and $32,643, respectively, in cost of revenue.
    (2)  For the three months ended December 31, 2024 and 2023, no impairment was recorded in cost of revenue. For the years ended December 31, 2024 and 2023, we recorded impairment of $9,930 and $184, respectively in cost of revenue.

    Unaudited Segment Revenue
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Segment Revenue:                        
    U.S. Marketplace   $ 193,395     $ 168,897     $ 733,688     $ 647,284  
    Digital Wholesale     18,344       40,872       97,785       216,005  
    Other     16,799       13,354       62,911       50,953  
    Total   $ 228,538     $ 223,123     $ 894,384     $ 914,242  

    Unaudited Segment Income (Loss) from Operations
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Segment Income (Loss) from Operations:                        
    U.S. Marketplace   $ 56,068     $ 43,281     $ 182,738     $ 127,724  
    Digital Wholesale     (5,500 )     (67,199 )     (179,315 )     (96,383 )
    Other     2,710       1,653       9,989       1,286  
    Total   $ 53,278     $ (22,265 )   $ 13,412     $ 32,627  

    Unaudited Condensed Consolidated Statements of Cash Flows
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Operating Activities                        
    Consolidated net income (loss)   $ 45,881     $ (22,603 )   $ 20,972     $ 22,053  
    Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:                        
    Depreciation and amortization     7,038       12,761       25,360       48,474  
    Gain on sale of property and equipment                       (460 )
    Currency loss (gain) on foreign denominated transactions     1,205       (532 )     971       (283 )
    Other non-cash (income) expense, net           (80 )     (816 )     88  
    Deferred taxes     13,996       (5,735 )     (33,348 )     (37,864 )
    Provision for doubtful accounts     517       131       2,051       378  
    Stock-based compensation expense     15,658       19,968       62,272       63,737  
    Amortization of deferred financing costs     128       128       515       515  
    Amortization of deferred contract costs     3,734       3,188       13,975       11,817  
    Impairment                 144,431       184  
    Changes in operating assets and liabilities:                        
    Accounts receivable     527       10,638       (4,866 )     10,975  
    Inventory     (261 )     (3,001 )     (112 )     1,958  
    Prepaid expenses, prepaid income taxes, and other assets     (8,720 )     (7,525 )     (1,627 )     (1,498 )
    Deferred contract costs     (4,394 )     (4,752 )     (15,701 )     (18,440 )
    Accounts payable     (15,433 )     903       (4,663 )     2,080  
    Accrued expenses, accrued income taxes, and other liabilities     6,465       (4,435 )     3,897       (3,419 )
    Deferred revenue     (193 )     270       362       9,067  
    Lease obligations     9,589       3,172       41,821       15,165  
    Net cash provided by operating activities     75,737       2,496       255,494       124,527  
    Investing Activities                        
    Purchases of property and equipment     (10,236 )     (15,515 )     (75,173 )     (24,563 )
    Proceeds from sale of property and equipment                       460  
    Capitalization of website development costs     (3,462 )     (4,875 )     (18,776 )     (16,648 )
    Purchases of short-term investments           (1,268 )     (494 )     (98,016 )
    Sale of short-term investments           72,462       21,218       77,462  
    Advance payments to customers, net of collections           2,649       259       (259 )
    Net cash (used in) provided by investing activities     (13,698 )     53,453       (72,966 )     (61,564 )
    Financing Activities                        
    Proceeds from issuance of common stock upon exercise of stock options     4,848             4,923       74  
    Payment of withholding taxes on net share settlements of restricted stock units     (7,500 )     (3,859 )     (24,891 )     (15,597 )
    Repurchases of common stock           (101,115 )     (146,180 )     (208,524 )
    Payment of excise taxes on repurchases of common stock     (1,584 )           (1,584 )      
    Payment of finance lease obligations     (19 )     (18 )     (75 )     (70 )
    Payment of tax distributions to redeemable noncontrolling interest holders                       (38 )
    Acquisition of remaining interest in CarOffer, LLC           (25,014 )           (25,014 )
    Change in gross advance payments received from third-party transaction processor     (118 )     48       (822 )     (4,475 )
    Net cash used in financing activities     (4,373 )     (129,958 )     (168,629 )     (253,644 )
    Impact of foreign currency on cash, cash equivalents, and restricted cash     (2,178 )     981       (1,596 )     475  
    Net increase (decrease) in cash, cash equivalents, and restricted cash     55,488       (73,028 )     12,303       (190,206 )
    Cash, cash equivalents, and restricted cash at beginning of period     250,741       366,954       293,926       484,132  
    Cash, cash equivalents, and restricted cash at end of period   $ 306,229     $ 293,926     $ 306,229     $ 293,926  

    Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Net Income and Non-GAAP Net Income Attributable to Common Stockholders and GAAP Net Income (Loss) Per Share Attributable to Common Stockholders to Non-GAAP Net Income Per Share Attributable to Common Stockholders:
    (in thousands, except per share data)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    GAAP consolidated net income (loss)   $ 45,881     $ (22,603 )   $ 20,972     $ 22,053  
    Stock-based compensation expense     15,658       14,071       62,492       57,913  
    Stock-based compensation expense for CarOffer, LLC Units(1)           55,543             55,543  
    Amortization of intangible assets     507       7,513       3,655       30,062  
    Impairment(2)                 144,431       184  
    Transaction-related expenses     421       1,044       1,536       1,044  
    Income tax effects and adjustments     (3,767 )     (16,807 )     (49,798 )     (27,489 )
    Non-GAAP consolidated net income   $ 58,700     $ 38,761     $ 183,288     $ 139,310  
    Non-GAAP net loss attributable to redeemable noncontrolling interest           (456 )           (1,686 )
    Non-GAAP net income attributable to common stockholders   $ 58,700     $ 39,217     $ 183,288     $ 140,996  
    GAAP net income (loss) per share attributable to common stockholders:                        
    Basic   $ 0.44     $ (0.21 )   $ 0.20     $ 0.27  
    Diluted   $ 0.43     $ (0.21 )   $ 0.20     $ 0.19  
    Non-GAAP net income per share attributable to common stockholders:                        
    Basic   $ 0.57     $ 0.35     $ 1.75     $ 1.25  
    Diluted   $ 0.55     $ 0.35     $ 1.72     $ 1.23  
    Shares used in GAAP and Non-GAAP per share calculations                        
    Basic     103,839       110,989       104,536       113,240  
    Diluted     106,117       110,989       106,264       114,189  

    (1)  CarOffer, LLC Units consist of CO Incentive Units, Subject Units (each as defined in the Company’s Annual Report on Form 10-K as of December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 20, 2025), and payments made to noncontrolling interest holders. 
    (2)  During the three months ended June 30, 2024, we updated the table to disclose impairment in Non-GAAP Consolidated Net Income and Non-GAAP Net Income Attributable to Common Stockholders; the three months and year ended December 31, 2023 have been updated for comparison purposes.

    Unaudited Reconciliation of GAAP Net Loss Attributable to Redeemable Noncontrolling Interest to Non-GAAP Net Loss Attributable to Redeemable Noncontrolling Interest
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    GAAP net loss attributable to redeemable noncontrolling interest   $     $ (4,698 )   $     $ (14,889 )
    Stock-based compensation expense(1)           144             783  
    Stock-based compensation expense for CarOffer, LLC Units (1)           2,249             2,249  
    Amortization of intangible assets(1)           1,849             10,171  
    Non-GAAP net loss attributable to redeemable noncontrolling interest   $     $ (456 )   $     $ (1,686 )

    (1)  These exclusions are adjusted to reflect the noncontrolling interest of 38% for the period prior to our acquisition of the remaining minority equity interests in CarOffer, LLC in December 2023 (the “2023 CarOffer Transaction”).

    Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Adjusted EBITDA and Non-GAAP Adjusted EBITDA and GAAP Consolidated Net Income (Loss) Margin to Non-GAAP Consolidated Adjusted EBITDA Margin
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    GAAP consolidated net income (loss)   $ 45,881     $ (22,603 )   $ 20,972     $ 22,053  
    Depreciation and amortization     7,038       12,761       25,360       48,474  
    Impairment                 144,431       184  
    Stock-based compensation expense     15,658       14,071       62,492       57,913  
    Stock-based compensation expense for CarOffer, LLC Units           55,543             55,543  
    Transaction-related expenses     421       1,044       1,536       1,044  
    Other income, net     (2,060 )     (5,875 )     (11,245 )     (19,060 )
    Provision for income taxes     9,457       6,213       3,685       29,634  
    Non-GAAP consolidated adjusted EBITDA     76,395       61,154       247,231       195,785  
    Non-GAAP adjusted EBITDA attributable to redeemable noncontrolling interest           (303 )           83  
    Non-GAAP adjusted EBITDA   $ 76,395     $ 61,457     $ 247,231     $ 195,702  
                             
    GAAP consolidated net income (loss) margin     20 %     (10 )%     2 %     2 %
    Non-GAAP consolidated adjusted EBITDA margin     33 %     27 %     28 %     21 %

    Unaudited Reconciliation of GAAP Net Loss Attributable to Redeemable Noncontrolling Interest to Non-GAAP Adjusted EBITDA Attributable to Redeemable Noncontrolling Interest
    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    GAAP net loss attributable to redeemable noncontrolling interest   $     $ (4,698 )   $     $ (14,889 )
    Depreciation and amortization (1)           1,989             10,863  
    Impairment (1)                       67  
    Stock-based compensation expense (1)           144             783  
    Stock-based compensation expense for CarOffer, LLC Units (1)           2,249             2,249  
    Other expense, net (1)           13             985  
    Provision for income taxes (1)                       25  
    Adjusted EBITDA attributable to redeemable noncontrolling interest   $     $ (303 )   $     $ 83  

    (1)  These exclusions are adjusted to reflect the noncontrolling interest of 38% for the period prior to the 2023 CarOffer Transaction.


    Unaudited Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Profit Margin to Non-GAAP Gross Profit Margin

    (in thousands, except percentages)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Revenue   $ 228,538     $ 223,123     $ 894,384     $ 914,242  
    Cost of revenue     29,549       55,088       155,439       262,788  
    GAAP gross profit     198,989       168,035       738,945       651,454  
    Stock-based compensation expense included in Cost of revenue     105       186       492       699  
    Stock-based compensation expense for CarOffer, LLC Units included in Cost of revenue           1,671             1,671  
    Amortization of intangible assets included in Cost of revenue           5,250       875       21,016  
    Transaction-related expenses included in Cost of revenue                 92        
    Impairment included in Cost of revenue (1)                 9,930       184  
    Non-GAAP gross profit   $ 199,094     $ 175,142     $ 750,334     $ 675,024  
                             
    GAAP gross profit margin     87 %     75 %     83 %     71 %
    Non-GAAP gross profit margin     87 %     78 %     84 %     74 %

    (1)  During the three months ended June 30, 2024, we updated the table to disclose impairment in Non-GAAP Gross Profit and Non-GAAP Gross Profit Margin; the three months and year ended December 31, 2023 have been updated for comparison purposes.


    Unaudited Reconciliation of GAAP Expense to Non-GAAP Expense

    (in thousands)

        Three Months Ended December 31, 2024  
        GAAP expense     Stock-based
    compensation
    expense
        Stock-Based compensation expense for CarOffer, LLC Units     Amortization of
    intangible assets
        Impairment (2)     Transaction-related expenses     Non-GAAP
    expense
     
    Cost of revenue   $ 29,549     $ (105 )   $     $     $     $     $ 29,444  
    Sales and marketing     76,448       (3,035 )                       (3 )     73,410  
    Product, technology, and development     35,948       (6,278 )                       (283 )     29,387  
    General and administrative     28,384       (6,240 )                       (135 )     22,009  
    Impairment                                          
    Depreciation & amortization     4,931                   (507 )                 4,424  
    Operating expenses(1)   $ 145,711     $ (15,553 )   $     $ (507 )   $     $ (421 )   $ 129,230  
    Total cost of revenue and operating expenses   $ 175,260     $ (15,658 )   $     $ (507 )   $     $ (421 )   $ 158,674  
                                               
        Three Months Ended December 31, 2023  
        GAAP expense     Stock-based
    compensation
    expense
        Stock-Based compensation expense for CarOffer, LLC Units     Amortization of
    intangible assets
        Impairment (2)     Transaction-related expenses     Non-GAAP
    expense
     
    Cost of revenue   $ 55,088     $ (186 )   $ (1,671 )   $ (5,250 )   $     $     $ 47,981  
    Sales and marketing     73,827       (2,701 )     (2,273 )                 (1 )     68,852  
    Product, technology, and development     36,737       (5,408 )     (2,458 )                 (3 )     28,868  
    General and administrative     75,667       (5,776 )     (49,141 )                 (1,040 )     19,710  
    Impairment                                          
    Depreciation & amortization     4,069                   (2,263 )                 1,806  
    Operating expenses(1)   $ 190,300     $ (13,885 )   $ (53,872 )   $ (2,263 )   $     $ (1,044 )   $ 119,236  
    Total cost of revenue and operating expenses   $ 245,388     $ (14,071 )   $ (55,543 )   $ (7,513 )   $     $ (1,044 )   $ 167,217  
                                               
        Year Ended December 31, 2024  
        GAAP expense     Stock-based
    compensation
    expense
        Stock-Based compensation expense for CarOffer, LLC Units     Amortization of
    intangible assets
        Impairment (2)     Transaction-related expenses     Non-GAAP
    expense
     
    Cost of revenue   $ 155,439     $ (492 )   $     $ (875 )   $ (9,930 )   $ (92 )   $ 144,050  
    Sales and marketing     322,249       (12,176 )                       (573 )     309,500  
    Product, technology, and development     144,432       (24,443 )                       (346 )     119,643  
    General and administrative     112,066       (25,381 )                       (525 )     86,160  
    Impairment     134,501                         (134,501 )            
    Depreciation & amortization     12,285                   (2,780 )                 9,505  
    Operating expenses(1)   $ 725,533     $ (62,000 )   $     $ (2,780 )   $ (134,501 )   $ (1,444 )   $ 524,808  
    Total cost of revenue and operating expenses   $ 880,972     $ (62,492 )   $     $ (3,655 )   $ (144,431 )   $ (1,536 )   $ 668,858  
                                               
        Year Ended December 31, 2023  
        GAAP expense     Stock-based
    compensation
    expense
        Stock-Based compensation expense for CarOffer, LLC Units     Amortization of
    intangible assets
        Impairment (2)     Transaction-related expenses     Non-GAAP
    expense
     
    Cost of revenue   $ 262,788     $ (699 )   $ (1,671 )   $ (21,016 )   $ (184 )   $     $ 239,218  
    Sales and marketing     304,070       (11,437 )     (2,273 )                 (1 )     290,359  
    Product, technology, and development     146,169       (23,476 )     (2,458 )                 (3 )     120,232  
    General and administrative     152,757       (22,301 )     (49,141 )                 (1,040 )     80,275  
    Impairment                                          
    Depreciation & amortization     15,831                   (9,046 )                 6,785  
    Operating expenses(1)   $ 618,827     $ (57,214 )   $ (53,872 )   $ (9,046 )   $     $ (1,044 )   $ 497,651  
    Total cost of revenue and operating expenses   $ 881,615     $ (57,913 )   $ (55,543 )   $ (30,062 )   $ (184 )   $ (1,044 )   $ 736,869  

    (1)  Operating expenses include sales and marketing, product, technology, and development, general and administrative, impairment, and depreciation & amortization. 
    (2)  During the three months ended June 30, 2024, we updated the table above to disclose impairment in Non-GAAP Expense; the three months and year ended December 31, 2023 have been updated for comparison purposes.


    Unaudited Reconciliation of GAAP Net Cash and Cash Equivalents Provided by Operating Activities to Non-GAAP Free Cash Flow

    (in thousands)

        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    GAAP net cash and cash equivalents provided by operating activities   $ 75,737     $ 2,496     $ 255,494     $ 124,527  
    Purchases of property and equipment     (10,236 )     (15,515 )     (75,173 )     (24,563 )
    Capitalization of website development costs     (3,462 )     (4,875 )     (18,776 )     (16,648 )
    Non-GAAP free cash flow   $ 62,039     $ (17,894 )   $ 161,545     $ 83,316  

    Non-GAAP Financial Measures and Other Business Metrics

    To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), we provide investors with certain non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

    The presentation of non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included above, and not to rely on any single financial measure to evaluate our business.

    While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation, and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, we have provided a reconciliation of non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.

    We monitor operating measures of certain non-GAAP items including non-GAAP gross profit, non-GAAP gross margin, non-GAAP expense, non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders. These non-GAAP financial measures exclude the effect of stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, amortization of intangible assets, impairments, and transaction related-expenses. Non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income per share attributable to common stockholders also exclude certain income tax effects and adjustments. Non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders also exclude non-GAAP net loss attributable to redeemable noncontrolling interest. We define non-GAAP net loss attributable to redeemable noncontrolling interest as net loss attributable to redeemable noncontrolling interest, adjusted to exclude: stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, and amortization of intangible assets. These exclusions are adjusted for redeemable noncontrolling interest, as applicable. Our calculations of non-GAAP net income per share attributable to common stockholders utilize applicable GAAP share counts as included in the accompanying financial statement tables included in this press release. In addition, we evaluate our non-GAAP gross profit in relation to our revenue. We refer to this as non-GAAP gross profit margin and define it as non-GAAP gross profit divided by total revenue. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

    We define Consolidated Adjusted EBITDA as consolidated net income (loss), adjusted to exclude: depreciation and amortization, impairments, stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, transaction-related expenses, other income, net, and provision for income taxes.

    We define Adjusted EBITDA as Consolidated Adjusted EBITDA adjusted to exclude: Adjusted EBITDA attributable to redeemable noncontrolling interest.

    We define Adjusted EBITDA attributable to redeemable noncontrolling interest as net loss attributable to redeemable noncontrolling interest, adjusted to exclude: depreciation and amortization, impairments, stock-based compensation expense, stock-based compensation expense for CarOffer, LLC Units, other expense, net, and provision for income taxes. These exclusions are adjusted for redeemable noncontrolling interest of 38% by taking the noncontrolling interest’s full financial results and multiplying each line item in the reconciliation by 38%. We note that we use 38%, versus 49%, to allocate the share of loss because it represents the portion attributable to the redeemable noncontrolling interest. The 38% is exclusive of CO Incentive Units, Subject Units, and 2021 Incentive Units (as each term is defined in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 20, 2025), which are liability-classified awards that do not participate in the share of loss. Adjusted EBITDA attributable to redeemable noncontrolling interest is reflective of the 2023 CarOffer Transaction. Following the 2023 CarOffer Transaction there was no redeemable noncontrolling interest as of December 1, 2023, and as a result, Consolidated Adjusted EBITDA is equivalent to Adjusted EBITDA for the three months and year ended December 31, 2024.

    In addition, we evaluate our Non-GAAP consolidated Adjusted EBITDA in relation to our revenue. We refer to this as Non-GAAP consolidated Adjusted EBITDA margin and define it as Non-GAAP consolidated Adjusted EBITDA divided by total revenue.

    We have presented Consolidated Adjusted EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. We believe Consolidated Adjusted EBITDA and Adjusted EBITDA help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude. Accordingly, we believe that Consolidated Adjusted EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision making. We have presented Adjusted EBITDA attributable to redeemable noncontrolling interest because it is used by our management to reconcile Consolidated Adjusted EBITDA to Adjusted EBITDA. It represents the portion of Consolidated Adjusted EBITDA that is attributable to our redeemable noncontrolling interest and enables an investor to gain a clearer understanding of the portion of Consolidated Adjusted EBITDA that is attributable to our redeemable noncontrolling interest. Adjusted EBITDA attributable to redeemable noncontrolling interest is not intended to be reviewed on its own.

    We define Free Cash Flow as cash flow from operations adjusted to include: purchases of property and equipment and capitalization of website development costs. We have presented Free Cash Flow because it is a measure of our financial performance that represents the cash that we are able to generate after expenditures required to maintain or expand our asset base.

    We define a paying dealer as a dealer account with an active, paid marketplace subscription at the end of a defined period. The number of paying dealers we have is important to us and we believe it provides valuable information to investors because it is indicative of the value proposition of our marketplace products, as well as our sales and marketing success and opportunity, including our ability to retain paying dealers and develop new dealer relationships.

    We define Quarterly Average Revenue per Subscribing Dealer (“QARSD”), which is measured at the end of a fiscal quarter, as the marketplace revenue primarily from subscriptions to our Listings packages and Real-time Performance Marketing, our digital advertising suite, and other digital add-on products during that trailing quarter divided by the average number of paying dealers in that marketplace during the quarter. We calculate the average number of paying dealers for a period by adding the number of paying dealers at the end of such period and the end of the prior period and dividing by two. This information is important to us, and we believe it provides useful information to investors, because we believe that our ability to grow QARSD is an indicator of the value proposition of our products and the return on investment that our paying dealers realize from our products. In addition, increases in QARSD, which we believe reflect the value of exposure to our engaged audience in relation to subscription cost, are driven in part by our ability to grow the volume of connections to our users and the quality of those connections, which result in increased opportunity to upsell package levels and cross-sell additional products to our paying dealers.

    We define Transactions within the Digital Wholesale segment as the number of vehicles processed from car dealers, consumers, and other marketplaces through the CarOffer website within the defined period. Transactions consists of each unique vehicle (based on vehicle identification number) that reaches “sold and invoiced” status on the CarOffer website within the defined period, including vehicles sold to car dealers, vehicles sold at third-party auctions, vehicles ultimately sold to a different buyer, and vehicles that are returned to their owners without completion of a sale transaction. We exclude vehicles processed within CarOffer’s intra-group trading solution (Group Trade) from the definition of Transactions, and we only count any unique vehicle once even if it reaches sold status multiple times. The Digital Wholesale segment includes the purchase and sale of vehicles between dealers, or Dealer-to-Dealer transactions, and Sell My Car – Instant Max Cash Offer transactions. We view Transactions as a key business metric, and we believe it provides useful information to investors, because it provides insight into growth and revenue for the Digital Wholesale segment. Transactions drive a significant portion of Digital Wholesale segment revenue. We believe growth in Transactions demonstrates consumer and dealer utilization and our market share penetration in the Digital Wholesale segment.

    Historically, we have used data from Google Analytics to measure two of our key business metrics: monthly unique users and monthly sessions. Effective July 1, 2024, GA4 replaced Google Analytics. The methodologies used in GA4 are different and not comparable to the methodologies used in Google Analytics. As discussed below, we also make certain adjustments to the GA4 data in order to improve the accuracy of the reported monthly unique users and monthly sessions. Due to the change in methodology, we are unable to provide comparable monthly unique user and monthly session information for prior periods, including any periods prior to June 30, 2024.

    For each of our websites (excluding the CarOffer website), we define a monthly unique user as an individual who has visited any such website and taken a Visitor Action (as defined below) within a calendar month, based on data as measured by GA4. We calculate average monthly unique users as the sum of the monthly unique users of each of our websites in a defined period, divided by the number of months in that period. Effective July 1, 2024, we count a unique user the first time a computer or mobile device with a unique device identifier accesses any of our websites or application during a calendar month and takes an action on such website or in such application, such as performing a search, visiting vehicle detail pages, and connecting with a dealer, which we refer to as a Visitor Action. If an individual accesses a website or application using a different device within a given month, the first Visitor Action taken by each such device is counted as a separate unique user. If an individual uses multiple browsers on a single device and/or clears their cookies and returns to our website or application and takes a Visitor Action within a calendar month, each such Visitor Action is counted as a separate unique user. We eliminate any duplicate unique users that may arise when users visit a webview within our native application. We view our average monthly unique users as a key indicator of the quality of our user experience, the effectiveness of our advertising and traffic acquisition, and the strength of our brand awareness. Measuring unique users is important to us and we believe it provides useful information to our investors because our marketplace revenue depends, in part, on our ability to provide dealers with connections to our users and exposure to our marketplace audience. We define connections as interactions between consumers and dealers on our marketplace through phone calls, email, managed text and chat, and clicks to access the dealer’s website or map directions to the dealership.

    We define monthly sessions as the number of distinct visits to our websites (excluding the CarOffer website) that include a Visitor Action that take place each month within a given time frame, as measured and defined by GA4. We calculate average monthly sessions as the sum of the monthly sessions in a defined period, divided by the number of months in that period. Effective July 1, 2024, a session is defined as beginning with the first Visitor Action from a computer or mobile device and ending at the earliest of when a user closes their browser window or after 30 minutes of inactivity. We eliminate any duplicate monthly sessions that may arise when users visit a webview within our native application. We believe that measuring the volume of sessions in a time period, when considered in conjunction with the number of unique users in that time period, is an important indicator to us of consumer satisfaction and engagement with our marketplace, and we believe it provides useful information to our investors because the more satisfied and engaged consumers we have, the more valuable our service is to dealers.

    The MIL Network