A publicly traded U.S. mutual fund firm is preparing to unwind a seven-year-old deal in Canada.
| Frank E. Holmes|
CEO, Chief Investment Officer
On Friday, Frank Holmes
, CEO and chief investment officer of U.S. Global Investors
that the San Antonio, Texas-based niche fund firm has agreed
to sell back its stake in Toronto-based Galileo Global Equity Advisors
to Galileo itself. The deal is expected to close on March 2, and the pricing is roughly the same amount that U.S. Global Investors initially paid for its stake.
U.S. Global Investors bought
a 50-percent stake in Galileo in 2013, leaving Galileo's ownership split 50/50 between U.S. Global Investors on the one hand and Galileo's CEO Michael Waring
on the other, then U.S. Global Investors upped
its Galileo stake to 65 percent in 2014. Waring continues to lead Galileo, which was founded in 2000.
"Streamlining the Company's operations will allow management to focus on growing the Company's assets under management in the U.S., in particular our gold and airline ETFs," Holmes states.
After a slight jump
, U.S. Global Investors' shares closed down 3.36% on Friday, at $1.44.
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