MutualFundWire.com: Seven Years In, a U.S. Boutique Unwinds a Canadian Deal

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Monday, January 6, 2020

Seven Years In, a U.S. Boutique Unwinds a Canadian Deal

A publicly traded U.S. mutual fund firm is preparing to unwind a seven-year-old deal in Canada.

Frank E. Holmes
U.S. Global Investors, Inc.
CEO, Chief Investment Officer

On Friday, Frank Holmes, CEO and chief investment officer of U.S. Global Investors, confirmed 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.

Printed from: MFWire.com/story.asp?s=60716

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