Past Investments
Our investment philosophy is guided by the principles of strong foundations.
After a series of successful exits in the healthcare, biotech and industrial manufacturing sectors, Trenchant Technologies Capital has more recently chosen to focus on expertly managed, financially sound early-stage companies that are leveraging artificial intelligence. Specifically, we're investing our efforts into revolutionary technologies that have the potential to make a lasting positive contribution to the way diseases are diagnosed, managed and treated. Our focus is on the intersection of novel technologies (for instance Artificial Intelligence and Quantum Computing) and traditional businesses, primarily in the medical, biomedical and technologies sectors. We believe novel and evolving technologies have the ability to create disruptive businesses that can generate significant growth and out compete nascent businesses.
Past Investments - Non-Traditional Investment Financing
Following the successful exit of its loans to Omni Healthcare and Waiward Steel (summaries below), Trenchant Technologies Capital switched its investment strategy and refocused on leveraging its status as a public company to help facilitate early-stage investments into companies with a defined liquidity event (acquisition or public listing). Our focus is on the intersection of novel technologies (for instance Artificial Intelligence and Quantum Computing) and traditional businesses, primarily in the medical, biomedical and technologies sectors. We believe novel and evolving technologies have the ability to create disruptive businesses that can generate significant growth and out compete nascent businesses.
3-year Exit
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Multiple Return on Investment
Trenchant acted as advisor and initial financier to ASEP Medical in its Initial Public Offering on the Canadian Securities Exchange.
ASEP Medical is a biotechnology company that provides diagnostic and therapeutic solutions to mitigate the growing global crisis of antibiotic failure. Based in Vancouver, BC, ASEP Medical’s purpose is to ensure the commercialization of a novel broad peptide technology developed by its founder, Dr. Robert Hancock. This peptide technology covers a broad range of therapeutic applications including bacterial biofilm infections (medical device infections, chronic infections, lung, bladder, wound, dental, skin, ear-nose and throat, sinusitis, orthopedic, etc.), representing two thirds of all infections, anti-inflammatories, anti-infective immune-modulators and vaccine adjuvants. Initial usage of ASEP’s novel technology is a diagnostic kit for predicting the onset of severe sepsis and organ failure that was developed by its founder Dr. Robert Hancock. Its diagnostic technology involves a patient gene expression signature that is identified in the blood and assessable by nucleic acid amplification technologies. Sepset’s diagnostic technology differs from current diagnostic tests in enabling diagnosis of severe sepsis within 1-2 hours of first clinical presentation (i.e., in the emergency room), while other diagnostics only provide diagnosis after 24-48 hours. Sepset believes this will enable critical early decisions to be made by physicians regarding appropriate therapies and reduce mortality and morbidity.
Trenchant Technologies Capital first invested in ASEP Medical by way of acting as a founding shareholder and corporate advisor. Trenchant used its capital markets experience to structure, finance and support ASEP’s public listing in Canada which was completed in November 2022. ASEP’s initial success as a public company ensured that Trenchant liquidated its investment in ASEP over an 18 month period from its listing at a significant multiple to initial investment.
Past Investments - Traditional Investment Financing
Trenchant Technologies Capital initially focused on traditional lending to low-risk, longstanding revenue-generating businesses with loans underpinned by asset security and backed by private equity. During this investment cycle Trenchant raised and committed over C$20 million in funding specifically to two businesses of over 20 that it reviewed.
10% p.a. Coupon​
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$6M Interest Paid
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5-Year Term
Omni Quality Living (formerly Omni Healthcare) owns, operates and manages long-term care homes for seniors across Canada. At the time of Trenchant’s initial investment, Omni had a 99% occupancy rate and a waitlist of more than 26,000. Trenchant’s investment was based on the long-term stability of the business, strong management acumen and high occupancy rates supported by federal contracts. At the time, Omni was generating in excess of $100 million in annual revenues with 10-12% EBITDA and maintained strong margins for the duration of Trenchant’s investment notwithstanding strong economic headwinds specifically related to Covid-19.
Trenchant provided Omni with a secured 5 year loan facility to support growth capital driven by the acquisition of other long-term care facilities. Under the terms of the loan, Trenchant lent Omni approximately $12 million at an 10% coupon. Over the term of the loan Trenchant earned for its shareholders an aggregate of $6.0 million in interest payments.
11% p.a. Coupon​
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$5.3M Interest Paid
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5-Year Term
Waiward Industrial (formerly Waiward Steel) is a diversified structural steel fabrication, construction, engineering and drafting services group with more than 50 years of operating success. Waiward has earned an outstanding reputation through its quality of workmanship, reliability and safety. Based in Edmonton, AB, the company has expanded its offices to BC and has operations across Canada and the United States. Waiward has nurtured a strong corporate culture and has been named to Canada’s Top 50 Best Managed Companies list numerous times since 2005.
At the time of Trenchant’s initial investment in 2015, Waiward was generating $214 million in annual sales and $18 million in EBITDA. Driven by strong EBITDA, Trenchant provided a secured 5-year loan facility to support additional operating and growth capital. Under the terms of the loan Trenchant lent Waiward approximately $8 million at an 11% coupon and an accrued payment in kind payable on maturity. Over the term of the loan Trenchant earned for its shareholders an aggregate of $5.3 million in interest payments.