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The Howard Group has recently launched the Insight Limited Partnership II.

LP II

Click here to learn more about LP II.


Focus

Established in October 2003, the Insight Limited Partnership:

  1. Invests on a long-term basis in a select group of micro cap public companies and
  2. Actively trades the securities of small and micro cap opportunities primarily listed on Canadian stock exchanges.

Note: The Insight LP is not open to the general public.

Results

Net Asset
Gross Percentage

Distributions

In 2006, The Limited Partnership investors received a cash distribution of $3 thousand per unit.

General Partner

The General Partner of the Insight Limited Partnership is Accolade Capital Inc. Grant Howard is President of The Howard Group (HG) and Accolade Capital. He and five independent directors of Accolade Capital are responsible for investment decisions for the Insight Limited Partnership.

Board of Directors

grant howardGrant Howard (President & Director)

Since 1988, Grant has served as Owner and President of The Howard Group Inc., Western Canada's oldest investor and financial relations firm. With a focus on assisting small and micro cap companies, Grant has directed the raising of more than $50 million in equity for Howard Group clients, assisted in the successful defense of two hostile takeover attempts, advised on mergers and acquisitions and worked with a myriad of management teams in the development and implementation of business plans.

Grant is a member of the Advisory Committee to the Bissett School of Management at Mount Royal College in Calgary, Alberta. He is a former Director of the Calgary Angel Network Committee, a community based and supported organization.

He previously held directorships in Southward Energy Ltd. (TSX) and ATC Petroleum Services (TSX Venture).

He is currently a director of Solana Resources, which is listed on the TSX Venture Exchange and the AIM Exchange in London, England.

Prior to forming The Howard Group, he enjoyed a multifaceted career in the communications industry, spanning ten years as a television and radio journalist to 1981 and crisis and media consultant to 1988. During that period, his clients included the Calgary Police Service, The XV Winter Olympics Organizing Committee, The Justice Academy of British Columbia, Oxford Developments and The Optometric Association of Alberta.

Grant was a founding member of the Calgary Crimestoppers Association, has assisted with fund raising for the ALS Society of Alberta and has served on boards of various organizations that have provided funding for a broad base of charitable groups. He was a founding member of the Willow Park Charity Classic, which has raised over $4 million dollars to date.

scott harknessScott Harkness (Director)

Since 2001, Scott has been responsible for the management of a long-standing Calgary based private equity fund that specializes in small cap publicly traded companies. Through a due diligence process involving the review of business plans, site visits and management meetings, he actively seeks investment opportunities from a diverse group of companies.

His prior history includes the position of President & CEO of a public company that was acquired by a large energy service firm, CFO of a base metals junior mining company that was acquired in a friendly takeover and as an investment advisor with Nesbitt Burns now BMO Nesbitt Burns. Scott holds an MBA from the University of Calgary as well as degrees in Economics and Environmental studies from the University of Victoria.

dale hodgson Dale Hodgson (Director)

Dale is a successful entrepreneur who over the past 20 years has developed extensive practical "street" expertise in building businesses. As President and owner, he established a Winnipeg based paging company, which was sold in 1982. Following that venture, he founded a technology company specializing in the digital archival and retrieval of files, which was sold in 1991.

In 1984, Dale became the President and owner of Sundog Printing.

Over a fifteen-year period he completed two acquisitions and grew revenues from $2 million to $30 million. Sundog was sold to a large multi-national in 1999. Dale is currently the President and owner of Tag Capital Inc. Since 1999, Tag has focused on real estate and private equity holdings.

Dale serves on several boards, which include Kokanee Springs Golf Resort (since 1988), Grande Cache Coal Company (since 2000) and Diamond Sage Energy Services (since 2002). He is also actively involved in the community.

He has served on the boards of the Young Presidents' Organization, World Presidents' Organization - International and the Institute of Modern and Contemporary Art - Calgary. Today he is Chairman of One to One Christian Fellowship and Co-Chair of Corpath Business Forums, both Christian ministries for the business community.

rod mcleodRod McLeod Q.C., (Director)

Rod is a highly respected member of the legal and business communities. After entering practice in 1971, he founded McLeod & Company in 1980 and led the firm's considerable growth in the areas of corporate, commercial, securities, civil litigation, and real property law. He retired from the firm in December 2003.

From 2004 to 2007, Rod was a member of the governing body for the Alberta Securities Commission .

Rod was appointed a Queen's Counsel by the Government of Alberta in 1986 and served as a Bencher of the Law Society of Alberta where he focussed on committees dealing with matters of professional ethics, education and conduct in the practice of law.

He has served as a member of the Board of Directors of TSE listed Westminster Resources Ltd., Ivy Capital Corporation, a former Alberta Stock Exchange junior capital pool company, and was President of Castillo Equities, a private corporation engaged in real estate and oil and gas exploration and development.

Rod is extremely active in the community, having been the founding Chairman of the Calgary Crimestoppers Association and a member of the boards of William Roper Hull Home and West Island College. He was the founding Chairman for the Willow Park Charity Golf Classic, an event which has raised approximately $3 million for Calgary charities, is a member of the Southern Alberta Institute of Technology's Chairman's Circle and in 1997 was named a Paul Harris Fellow by the Rotary Foundation of Rotary International. Rod earned a B.A. (Economics) from Simon Fraser University in 1968 and his law degree from Osgoode Hall Law School in 1971.

don morrisonDonald Morrison (Director)

Having obtained his Bachelor of Science Civil Engineering Degree in 1966, Don, in 1974, went on to found and lead a number of contracting and technology firms specializing in the repair and restoration of concrete structures.

His companies (Structural Diagnostics, CCD Western, Kamma Polymers), in addition to providing consulting and contracting services, pioneered and led the utilization of high technology materials and processes for the protection, repair and/or strengthening of deteriorated or damaged concrete structures including dams, bridges, industrial plants and high rise buildings.

Don is a member and Past Chairman of the Alberta Chapter of the World Presidents' Organization, a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta and a Trustee of the Delta Waterfowl Foundation.

He is also the President of Moonpool Capital Corporation, an investment firm with interests in property development and natural resource extraction and Moonpool Petroleum Inc., a joint venture partner in over 900 gas and oil wells in Alberta.

glen russellGlenn Russell (Director)

Glen has enjoyed a long and highly successful career in the upstream oil and gas industry in Canada and internationally with specific expertise in the areas of operations, development, marketing and finance. Between 1993 and 1995 he was the Senior Vice President and Chief Operating Officer of Gulf Canada Resources. He was responsible for operations in Canada, Russia and Indonesia, which generated annual revenues in excess of $700 million.

Between 1995 and 1997 Glen was President and Chief Operating Officer of Chauvco Resources and lead the company to production of more than 40 thousand barrels of oil equivalent per day and annual revenues of more than $250 million.
For a three and a half year period starting in 1998, Glen was Executive Advisor to CIBC World Markets, which provided corporate strategy, mergers and acquisitions and other advisory services to Canadian, U.S. and international oil and oilfield services companies. During his period at CIBC World Markets, he was a member of the team advising on more than $4 billion of transactions.

He serves or has served on a number of boards of publicly traded, private and not-for-profit organizations including Primewest Energy Trust, NTG Clarity Networks, Sonic Mobility, Northrock Resources, Syncrude Canada, Canwest Gas Supply, Rimbey Pipeline Company, Chauvco Resources and the Centre For Frontier Engineering Research.

Glen obtained his Bachelor of Science in Mechanical Engineering from the University of Manitoba in 1969, was a member of the Senior Executive Program, Sloan School, Massachusetts Institute of Technology in 1989 and is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.

Due Diligence Process

As illustrated in the chart a structured investment review process is utilized when reviewing each due diligenceopportunity. The Howard Group is initially responsible for reviewing companies to determine their acceptability for investment.

Strong preference for investment will be given to those companies that have an established relationship with The Howard Group.

HG provides a summary report to the independent members of the board for a preliminary review and discussion.

Candidates for investment must make a presentation to the Board of Directors.

Upon concurrence of the majority of the Board of Directors, the level of investment will be communicated to the company.

At the time an investment decision is made, all unit holders in the Limited Partnership are electronically informed of the decision and the reasons for the investment.

Also, unit holders may be contacted to garner additional opinions or insight into a potential investment in advance of a final decision. This step may be added into the due diligence process as the "community".

Unit Holders

A key principle of the Insight Limited Partnership is that the General Partner and the Board of Directors will maintain communication with the unit holders on an ongoing basis.

In keeping with that philosophy, the following will be part of the framework:

  • Unit holders may be solicited for feedback and insight on potential investments,
  • Unit holders will be encouraged to recommend companies as potential investments,
  • Unit holders only will have access to a password protected area on the HG web site, which will contain information on the current status of the portfolio and related investments,
  • Unit holders will be invited to attend presentations from investee companies for face-to-face opportunities to question management. This is envisioned to occur on a quarterly basis,
  • Unit holders will be advised of opportunities to co-invest with the Insight Limited Partnership,
  • When the Insight Limited Partnership establishes or divests itself of a position in a company, whether it is an investment or a trading opportunity, limited partnership investors are electronically notified of such actions.

Compensation

How the General Partner is Compensated

"Performance" is the key word. Unit holders will receive 80% and the General Partner 20% of distributions.

In the first year the General Partner will receive a maximum of $20 thousand to cover costs associated with establishing the Limited Partnership and thereafter $10 thousand annually for a contribution to administrative expenses. Any costs above this amount are the responsibility of the General Partner. The General Partner does not receive a management fee.

How the Directors are Compensated

It is the responsibility of the General Partner to establish compensation from proceeds received under the above profit sharing formula for members of the Board of Directors of the General Partner.

Distributions to Unit Holders

Distributions are provided to unit holders when net cash profits from the sale of securities total at least 10% of the original total investment in the Limited Partnership. This policy has been adopted to minimize administration costs. On an annual basis, the first cash distribution will be calculated after setting aside the contribution to administrative expenses.

 
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