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Old Line Spirits in Baltimore has raised $290,000

Old Line Spirits

BALTIMORE, MD.– A Baltimore, Maryland-based liquor distillery has raised $290,000 in debt, according to a Securities and Exchange Commission filing.

Old Line Spirits filed the Form D on April 20. It did not disclose what it intended to do with the proceeds.

Old Line Spirits is a craft distillery located in Baltimore, Maryland, offering whiskey made of 100 percent malted rye.

Mark McLaughlin and Arch Watkins acquired Golden Distillery, located in Seattle, Washington, from Bob Stilnovich. McLaughlin and Watkins moved what is now Old Line Spirits to Baltimore.

Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell securities.

The form can be found here.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Under Armour CEO Plank’s compensation decreases 19 percent

Under Armour, Inc. Logo.  (PRNewsFoto/Under Armour, Inc.)

Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.)

BALTIMORE, MD — Under Armour Inc.’s chief executive officer saw a 19 percent decrease in total compensation in the company’s 2016 fiscal year as he did not receive incentive compensation, according to the company’s proxy statement filed with the Securities and Exchange Commission.

Kevin A. Plank’s compensation for the fiscal year totaled $2.03 million, down from $2.43 million in the company’s 2015 fiscal year. Plank has a base salary of $26,000, unchanged from 2015, and received $2 million in stock awards.

Plank did not receive incentive compensation for fiscal year 2016. In 2015, he received $400,000. After a disappointing fourth quarter, Under Armour determined that it was unlikely that Plank could achieve the company’s target level of performance in 2017.

Under Armour’s fourth-quarter net income fell 1 percent to $105 million, well below Wall Street predictions of $113 million. Revenue for the quarter was reported as $1.31 million, also falling short of the expected $1.41 million.

Lawrence Molloy, who assumed the position of chief financial officer Feb. 3, received total compensation of $6.72 million during the 2016 fiscal year. This includes a base salary of $633,462 and $5.8 million in stock awards.

For the year, company revenue grew 22 percent to $4.38 billion and saw a 19 percent increase in wholesale revenues to $3.1 billion. Under Armour has predicted 2017 net revenue of $5.4 billion.

The company’s stockholders meeting will be held on Wednesday, May 31, at 10 a.m., at the company’s office located at 2601 Port Covington Drive in Baltimore.

Under Armour’s shares were down 10 cents to $17.76 in Thursday morning trading.

This story is from the Maryland Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism

 

McCormick plans to cut $400 million in costs by 2019

SPARKS, MD – McCormick & Co. announced Tuesday that it plans to cut $400 million in costs and reach $5 billion in sales within the next three years.img-logo-mccormick_200x200

The company’s objectives include an increase in annual sales growth of 4 percent to 6 percent, as well as an increase in earnings per share of 9 percent to 11 percent.

Analysts currently project that the spice manufacturer will report revenue of $4.56 billion in 2017 and revenue of $4.72 billion in 2018.

McCormick said during its investor day that plans to continue innovation through new product platforms, greater use of technology in product development, increased digital marketing and greater accountability across all operations and functions.

“Across both our consumer and industrial segments, we are executing on strategies to drive exceptional growth, and to convert that growth to higher profit and strong cash flow,” said President and CEO Lawrence Kurzius.

McCormick & Co.’s shares opened on Tuesday at $98.01.

The filing can be found here.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Capital Funding Bancorp raises $35 million

CFGBALTIMORE, MDCapital Funding Bancorp Inc. has raised $35 million in debt, according to a filing with the Securities and Exchange Commission.

The Form D, signed by the company’s secretary Deborah Spangenberg, disclosed that the $35 million transaction occurred on March 10.

Capital Funding Bancorp, a bank holding company that provides banking and lending services to business and individuals, is a company under Capital Funding Group.

Baltimore-based CFG is a provider of financial solutions for multifamily properties and health care facilities across the country.

Jack Dwyer is the founder and chairman of Capital Funding Group. Dwyer founded CFG in 1993, and in 2001 he was successful in obtaining HUD-headquarters approval for the Life Care Centers of America portfolio transaction. It was a $493 million funding and the first portfolio ever approved by HUD.

Bancorp, formed in 2009, has three subsidiaries: CFG Community Bank, Capital Finance LLC and Capital Funding LLC.

In October 2016, Capital Funding Group was awarded the 2016 Baltimore Healthiest Company Award from SmartCEO Magazine.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Bethesda-based Aledade raises an additional $20 million

Aledade-logoBETHESDA, MD A Bethesda-based health care company raised an additional $20 million from the $20 million that it raised in January, according to a filing with the Securities and Exchange Commission.

Aledade Inc. filed the first Form D on Jan .12, which stated $19,999,997 was raised by lead investor Biomatics Capital, with participation from GV (formerly Google Ventures), Maryland Venture Fund, Venrock and ARCH Venture Partners.

On March 8, the company raised another $20,249,999 in equity, according to the amended filing.

None of the money raised will go toward executive salary.

Aledade, founded in 2014, focuses on providing a new model of primary care by partnering with physicians to build and lead accountable care organizations (ACOs) that enable doctors to stay independent.

Aledade’s primary goal is to provide opportunities for small and solo practices to establish “value-based contracts with some of the largest payers in the health care system.”

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Sucampo shares rise 13 percent after earnings beat analyst expectations

imgresROCKVILLE, MD — Shares of Sucampo Pharmaceuticals Inc. rose around 13 percent Wednesday after the constipation drugmaker released full year 2016 earnings that beat analyst expectations.

Sucampo reported fourth-quarter adjusted earnings per diluted share of 68 cents on revenue of $73 million, beating analyst estimates of 43 cents on revenue of $66 million.

For the full year 2016, Sucampo reported year-over-year total revenue growth of 50 percent to $230 million.  Product sales revenue increased to $129 million, representing 94 percent year-over-year growth.

Sucampo’s full-year 2017 guidance forecasts revenue of $220 million to $230 million, adjusted net income of $80 million to $90 million, adjusted earnings per diluted share of $1.35 to $1.50 and adjusted Ebitda of $145 million to $155 million.

Mylan, maker of the EpiPen, owns the rights to Sucampo’s constipation drug in Japan. Revenue in the fourth quarter of 2016 included a one-time milestone of $10 million related to the sale of the drug in Japan, versus a one-time sales milestones of $5 million in 2015.

Takeda, Japan’s largest pharma firm, owns the rights for the same drug, brand name Amitiza, in all global markets except Japan and China.

Rockville, Maryland-based Sucampo has three formulations of its flagship drug Amitiza, generic name lubiprostone, in Phase 2 trials.

The company has a fourth drug to treat an inherited form of colon cancer in Phase 3 trials. There are currently no approved treatments or products in late-stage development to treat this colon disorder, known as FAP.

In the 1980s, Sucampo’s founder, Dr. Ryuji Ueno, discovered the potential of a class of naturally occurring compounds called prostones to fight human diseases.

Sucampo acquired 44 percent of Japan’s R-Tech Ueno Ltd. for $276 million at a 49 percent premium in August 2015. RTU manufactures all of Sucampo’s drugs and is controlled by its founders, Sachiko Kuno and Ryuji Ueno, according to a March 2015 regulatory filing.

The company also announced two updates to its executive management team. Andrew Smith, chief financial officer, will be leaving Sucampo to move back to Europe with his family to pursue professional opportunities there. Peter Pfreundschuh will become Sucampo’s new CFO.  

Also, Jones “Woody” Bryan will become Sucampo’s new senior vice president of business development and licensing. Both changes will take effect on March 20.

Shares of Sucampo were trading around $12.65 Wednesday morning, up about 13 percent.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Bethesda-based DAI raises $7.5 million

BETHESDA, MD — A Bethesda-based company that focuses on development and improving lives around the world has raised more than $7.5 million in a private equity offering, according to a filing Monday with the Securities and Exchange Commission.  search

DAI Global LLC raised $7,507,981 in equity of the total offering of $9,499,924 from 76 investors.

The form was signed by Michael Jakobowski, James Boomgard, Helle Weeke, Elizabeth Nelson, Daniel Heaney, Marwan Juma, Maria Otero, Gail Steinel, Jean Gilson, Christopher LeGrand, Christopher Lockett, Zan Northrip and Laura Viehmyer.

The company, formed in 2015, is categorized as a business services firm and employs about 3,000 people around the world with 70 percent being local staff.  The company has offices in over 150 locations around the world.

DAI was incorporated in 1970 as Development Alternatives Inc. as the founders wanted to change the way development happens.

According to the website, the company “tackle(s) fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability. And we do this by bringing together fresh combinations of expertise and innovation across multiple disciplines—crisis mitigation and stability operations, democratic governance and public sector management, agriculture and agribusiness, private sector development and financial services, economics and trade, HIV/AIDS and disease control, water and natural resources management, and energy and climate change.”

DAI is strict with ethical and compliance standards for all related laws and regulations.  The company offers solutions to problems around the world in digital, environment and energy, corporate sustainability, economic growth, governance, health and stability.

This is a new notice with the first date of sale on March 1. The offering is not intended to last more than one year.

None of the money will go toward executive salary, and the offering is not being made in conjunction with a business combination transaction. The minimum investment accepted from any outside investor is $500.

The company claimed a Rule 506 (b) exemption for the filing. Companies relying on the Rule 506 exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Consulting firm Indiggo Associates raises $750,000

IndiggoBETHESDA, MD — Indiggo Associates Inc., a Bethesda, Maryland-based business consulting firm, raised $750,000 in a private equity offering, according to a filing with the Securities and Exchange Commission.

Indiggo Associates filed the Form D on March 3. It did not disclose what it intended to do with the money raised.

Indiggo Associates is a business-consulting firm that helps its clients build leadership skills among their executives and increase their efficiency and performance. The company has developed a leadership platform that helps members practice effective leadership.

Janeen Gelbart serves as chief executive officer of Indiggo Assosciates.

Gelbart also founded Safic, a pan-European importer and distributor of technology products. Following several years of spearheading Safic’s triple digit growth, she sold the business and relocated to the U.S. She then created a wholesale distribution company where she worked for eight years.

Indiggo Associates is a business-consulting firm that helps its clients build leadership skills among their executives and increase their efficiency and performance. The company has developed a leadership platform that helps members practice effective leadership.

The company announced in February 2017 its partnership with BDO USA, one of the largest accounting services company.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

 

DiamondRock Hospitality buys two resorts in Sedona for $97 million

imgresBETHESDA, MD — DiamondRock Hospitality Co., a lodging-focused Maryland corporation operating as a real estate investment trust, announced that it has acquired two resorts in Sedona for $97 million, according to a filing Tuesday with the Securities and Exchange Commission.

The company upwardly revised its 2017 earnings guidance from 92 cents per share to 96 cents per share, reflecting an additional $7.5 million of expected earnings attributable to the acquisition.

DiamondRock’s primary business is to acquire, own and renovate full-service hotel properties. The company owns a portfolio of 28 hotels in the United States, consisting of over 9,600 rooms. Subsidiaries of the company’s partnership, DiamondRock Hospitality Limited Partnership, own the individual hotels.

The company’s most recent purchases, the 88-room L’Auberge and the adjacent 70-room Orchards Inn, include a combined 158 guest rooms, 5,000 square feet of meeting space, outdoor wedding venues and two restaurants.g72811mm01i002

Since 2015, the resorts have undergone $14 million in renovations, and DiamondRock plans to spend $5 million on renovations in the off-seasons over the next two years.

The company said it expects earnings driven by the labor productivity and lower food and beverage cost initiatives that it plans to implement to reach approximately $9.5 million over the next two to three years.

“This acquisition represents a rare opportunity to own two high-quality resort properties in a coveted, high barrier-to-entry resort market,” said Mark Brugger, president and chief executive officer of DiamondRock.

“While we believe the initial pricing of the deal is attractive, we have identified significant opportunities to increase profitability through the implementation of our well-proven asset management practices and thoughtful capital enhancements.”

The $97 million purchase price represents an 8 percent yield and 12.6 multiple on the resorts’ forecasted 2017 earnings before interest, taxes, depreciation and amortization. The yield is calculated by dividing the hotels’ net operating income by the purchase price.

In May 2011, DiamondRock announced a $72.6 million purchase price for JW Marriott Denver.

In December 2014, DiamondRock bought the Westin Beach Resort & Spa in Fort Lauderdale, Florida for $149 million. 

Investor demand for luxury resorts has recovered from the 2008 real estate crash partly because of little new construction in the industry. The Sedona market is one of the highest-growth markets in the U.S., with no new hotel supply under development in the near-term.

DiamondRock trades on the the New York Stock Exchange under the ticker “DRH.” Shares closed down 3 percent at $10.87 Tuesday with about 3.2 million shares trading hands. The company sees an average trading volume of 2.7 million shares.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

Southern consumers faced with biggest U.S. price increases since February 2013

CHAPEL HILL, N.C. — The cost of living in the U.S. increased a larger-than-forecast 0.6 percent after a 0.3 percent gain in December, the Labor Department reported Wednesday.

Compared with the same month last year, costs paid by Americans for goods and services rose 2.5 percent.

Higher costs for gasoline, apparel and new cars indicate that inflation is gathering momentum. Core inflation increased 2.3 percent from January 2016.

Bloomberg reported Wednesday a comment made before the report by Sam Bullard, senior economist at Wells Fargo Securities in Charlotte, North Carolina: “CPI inflation has been steady in recent months amid rising energy prices.”

A 7.8 percent jump in the cost of gasoline accounted for about half of the increase in the January CPI.

“After the past couple years, the transitory nature of the dip in inflation due to the decline in energy prices has come to fruition,” Bullard said.

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In her testimony before Congress on Tuesday, Federal Reserve Chair Janet Yellen said that more interest-rate increases will be appropriate if inflation picks up and the labor market remains tight.

Wednesday’s report from the Labor Department showed energy costs increased 4 percent from a month earlier. Food prices rose 0.1 percent.

Energy prices in the South rose 3.2 percent and food prices rose 0.4 percent in January. The consumer price index for the South rose 0.5 percent over the month. These numbers are not seasonally adjusted, so the change may reflect seasonal influences.

The U.S.’s core CPI measure rose 0.3 percent this month, the most in five months. Bloomberg called for the core index to rise 0.2 percent from the previous month, and 2.1 percent from the prior year.

Over the last 12 months, the South’s core index, which excludes volatile food and fuel costs, increased 2.2 percent, reflecting price increases for shelter and medical care.

The CPI is the broadest of three price gauges from the Labor Department because it includes all goods and services, including prices consumers pay for medical visits, airline fares, movie tickets and rents. The other two measures are import costs and producer prices.

This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

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