Business in Vancouver - Issue 1298

redesigned

responsive Getting business information on the go from B.C.’s daily source of local business intelligence just got better | Pages 16-17

Beyond the Print lists highlights of BIV’s online-only coverage like our new Living/Working feature | Page 4

investnewwest.ca/2014forum Daily business news K biv.com

September 16–22 , 2014 | Issue 1298 | $4.00

Health | PAGE 3

TOP 100 FASTEST GROWING COMPANIES

Marijuana malaise Health Canada stalling sector’s development, businesses say

Service industry now challenging technology and resources as the sector with the highest number of fastest-growing companies in B.C.

Real Estate | PAGEs 6–7

Retail redrawn Lease signs point to big changes in Kerrisdale’s merchant mix

RESOURCE

COMPANIES

SERVICE

TECH /WEB

COMPANIES

COMPANIES

MANUFACTURING COMPANIES

Trade | 4

security | 11

redbacks

Cloud cover

Colin Hansen hot for B.C. yuan hub

Concerns over cloud computing

OTHER

COMPANIES

Company profiles and BIV’s list of the province’s 100 fastest-growing companies | PAGES B1–B20

inside | getting B.C. wood working in india | Page 10

Well grounded since 1973...

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We have deep roots here, not just branches.

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BUSINESSVANCOUVER September 16–22, 2014

inside

innovation

West End windfall

publisher President/Publisher | Paul Harris

5

Extra density under community plan brings boon to property owners

Surrey Destination India

B.C. lumber companies struggle to get a toehold in the subcontinent

10

ADVERTISING SALES Display Sales | Janice Frome, Blair Johnston, Michele MacKenzie, Rob Macquisten, Pia Tomlins

Asia Pacific Taiwan pulls welcome mat Jonathan Manthorpe on cooling relations between Taipei and Beijing

14

FInance Summer doldrums Bryan Yu on August’s soft labour market in B.C.

reader sales & service Manager, Reader Sales & Service | Deborah Hamilton subscriber sales | Gerard Veeneman

Profile: Jeff Booth The BuildDirect CEO helped transform the construction supply industry by applying an online business model to the sector. And he’s only just getting started, he says.

21

Peter Ladner on a political balancing act between consultation and action

18

Tech 11 Real Estate 12 Ask the Experts 20 How I Did It 23

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24-27 for the record Editorial/opinion 28-29 datebook 30 Fastest 100 B1-B20

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EVENTS Events | Paige Millar Business Development Manager | Chris Wilson

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Correction Life Lessons

Fastest-growing companies

There’s no one-size-fits-all answer in business, says software CEO Chris Burcsik

BIV’s exclusive list, ranked by percentage growth in revenue from 2009 to 2013

31

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Kevin Boothroyd is director of sales and marketing for Pacific Coastal Airlines.

Incorrect information appeared in “B.C. airlines flying high on resource boom, tourism upturn” (issue 1297; September 9–15).

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news

BUSINESSVANCOUVER September 16–22, 2014

3

Feds nip emerging medical marijuana industry in bud agriculture | Companies irked over what they see as Ottawa’s glacial pace of application processing

By Tyler Orton torton@biv.com

A

g r i m a B ota n ic a ls h a d everything ready to go for its medical marijuana facility as the April deadline approached for new federa l regulations.

Its 1,200-page application to Health Canada had been filed in November, and by April the Maple Ridge operation was up to code as far as Agrima chief operations officer James Poelzer could tell. “[Health Canada] asked us to confirm if everything was indeed complete … and then everything just sort of stopped.”

Agrima has been waiting nearly six months for the final Health Canada inspection it needs before it’s granted a licence under the new Marihuana for Medical Purposes Regulations (MMPR).

In the meantime, the company has been spending money to maintain its facility while no revenue is coming in.

Such financial and bureaucratic uncertainties in the emerging medical marijuana industry are not unique.

True Leaf Medicine first applied for a licence in July 2013, according to CEO Darcy Bomford.

But Vernon blocked the use of a property in the B.C. Interior municipality for a medical marijuana facility. Bomford then had to restart the application in April 2014 once a new location was found in nearby Lumby.

“I was hoping they’d just amend the application with the new location,” Bomford said, “but they don’t allow you to transfer locations on the application. You have to basically start from scratch.”

True Leaf, whose board chairman is former B.C. premier Mike Harcourt, has secured an option on a new building, which it’s paying for each month.

“It’s a financial strain, for sure,” Bomford said.

There are 190 B.C. applicants

True Leaf Medicine CEO Darcy Bomford: Health Canada delays in approving its medical marijuana licence are putting a financial strain on his company

Agrima Botanicals COO James Poelzer has had to cut his staff down to a skeleton crew to stay afloat. The medical marijuana company hasn’t heard any updates on its licence application from Health Canada in almost six months | dominic schaefer, BIV files

I was hoping they’d just amend the application with the new location, but they don’t allow you to transfer locations on the application. You have to basically start from scratch

[] Darcy Bomford CEO, True Leaf Medicine

vying for a licence under the MMPR as of July 29, according to Health Canada.

“Timelines after screening leading to a licence have varied significantly, in part as a result of the completeness and quality of the application, the readiness of the applicants, and the extensive security checks,” a Health

Canada spokeswoman said in an email.

Out of the 1,009 applications submitted in Canada as of August 25, the federal agency said 462 were returned because they were incomplete, another 201 were refused and 32 were withdrawn.

That leaves Health Canada with a backlog of 314 active applications, while only 13 companies have received licences under the MMPR. Thunderbird Biomedical Inc. – one of the few companies to receive a licence – waited nine months before its application was approved in February, according to investor Kam Thindal, managing partner of Hamza Thindal Capital Corp.

“There doesn’t seem to be an exact pathway that’s carved out,” he said, adding the company hired a professional consultant to advise them on how to produce the best application.

“I think it’s more so to do with the quality of the application.”

Poelzer said he’s followed up with Health Canada numerous times, but the federal agency hasn’t provided Agrima with any feedback or an inspection date.

He and Bomford both said they suspect a lack of Health Canada staff available during summer months could have contributed to the long delays, but a spokeswoman with the federal agency couldn’t confirm that was the case.

Poelzer said Agrima’s investors have already sunk millions into a business that appears no closer to getting off the ground than it was in April.

To stay afloat, he said, he’s retained only key staff members to maintain the facility and ensure it’s ready to go into production the moment the application is approved. “[We’re] being very cautious

1,009

Number of applications submitted under the new Marihuana for Medical Purposes Regulations (MMPR) as of August 25

462

number of applications returned because they were incomplete

201

Number of applications refused

13

Number of companies that have received licences under the MMPR

with where our resources are going to.”

Poelzer added that the company is relying on funds from its investors’ other businesses to support operating costs. •

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BUSINESSVANCOUVER September 16–22, 2014

Stakeholders lobby for Chinese currency hub in B.C. trade | Status

as a renminbi trading centre could boost trade and create jobs, advocates say

By Jen St. Denis jstdenis@biv.com

T

he push is on to establish a Chinese currency trading centre – and its spinoff economic benefits – in Vancouver and Toronto, and win the race to establish the first renminbi (RMB) hub in the Americas.

The Toronto Financial Services Alliance (TFSA) and AdvantageBC announced a partnership August 27 to work together and with officials from the federal, B.C. and Ontario governments to bring the “redback,” or yuan, to Canada.

Backers of the project say the joint effort will give the Canadian bid an advantage over U.S. cities such as San Francisco, which is also lobbying hard to host the hub. New York already acts as an unofficial yuan trading centre.

“Trade with China is growing so rapidly,” said Colin Hansen, a former BC Liberal MLA and now the president of AdvantageBC, an

organization that promotes international business in B.C. “The use of the RMB is also growing very rapidly. … We know it’s going to grow exponentially.”

There are 10 official RMB hubs throughout the world, the most prominent being Hong Kong, Singapore, London and Frankfurt. The central banks of countries with official hubs have also signed a bilateral swap agreement with the Bank of China. It guarantees countries access to a backstop reserve of RMB. While 24 countries around the world have inked bilateral swap dea ls, A rgenti na is the on ly country in the Americas that has signed one. Hansen said the economic benefits for Canada could be significant. AdvantageBC estimates that an RMB hub in Vancouver and Toronto could boost trade by $500 million a year, would create jobs in the financial sector and would encourage more investment from China. When

Colin Hansen, former BC Liberal MLA and president of business advocacy group AdvantageBC, is lobbying to locate a renminbi hub in Canada | Richard Lam

Canadian companies trade with China now, they typically convert transactions to U.S. dollars first and then into renminbi. That process takes more time than a direct conversion would and increases transaction costs.

“If you sell $100 million worth of lumber, the cost of the currency exchange process is anywhere from 0.5 to one percentage points,” Hansen said. “So on $100 million that would be $1 million of additional cost.”

On China’s side, efforts to support RMB trading are part of the country’s aspirations to make the renminbi an international currency, said Grégoire Legault, a graduate student at the University of British Columbia who has studied renminbi trading. Legault recently co-wrote a report for the Asia Pacific Foundation on the potential of locating an RMB hub in Canada.

Efforts to internationalize the RMB stalled in the 1990s and in the 2000s because of the Asian financial crisis and 2008 market crash, but are now back on track, Legault said. The redback could one day rival the greenback and euro, although China still strictly controls its currency.

“For China and for foreign companies, [trading directly in RMB] minimizes exchange risk, lowers costs of transactions and increases the efficiency of borrowing from financial institutions,” Legault said. “At the same time, having an international currency is an important source of power and prestige and it symbolizes the economy’s resilience.” He said that a bilateral swap agreement would be made between the Bank of Canada and the Bank of China without involvement from the federal government. But a public endorsement from the federal government could help the Vancouver/Toronto plan.

AdvantageBC and the TFSA are also focusing on making Canadian companies more aware of the benefits of trading directly in RMB: a recent HSBC study found that only 5% of Canadian companies that trade with China pay in RMB, compared with a 22% global average. •

BIV.com Beyond the print hot topics

From the editor With the launch of Business in Vancouver’s new website comes the launch of Beyond the Print, listing some of the highlights of stories, videos and infographics that appear exclusively online.

We’ll also highlight our new Living/Working issue, published online every Friday.

This week our top stories include a report on how Vancouverites, and other Canadians, are stuck in starter homes longer as prices of larger family dwellings grow further and further out of reach. Readers also liked a story about how a Vancouver startup, funded in part by a former Vancouver Canuck, plans to make money from the teachers’ strike.

We also looked at what interested us from other news sources including a story of how fracking is affecting the price of ice cream and a new take on the Nigerian letter scam that starts with “I am Janet L. Yellen.”

Check these stories out and more at biv.com

Cost of CPP has tripled over past eight years: Fraser Institute Northern B.C. politicians blast Trudeau for fracking ban comments Check out a BIV’s new Living/ Working section published Fridays, including a feature on how to spend your time and hard-earned money, plus CEO interviews and more

BIV reporter Tyler Orton talks on Global BC about B.C. businesses worried about how a downturn in the Chinese economy could hurt their bottom line

NEWSLETTERS Sign up for our daily newsletter covering the breaking news of the day along with highlights of our print stories, videos and events.

Also sign up for our Asia Pacific and Real Estate weekly newsletters keeping you informed of what’s happening around the world and around the corner.

How realistic are Canada Post’s e-commerce plans? See BIV’s video on the Crown corporation’s bid to offset plummeting volumes of letter mail

The richest 10% of British Columbians have the highest concentration of wealth in the country, according to a new report from the Broadbent Institute.

SUBSCRIBERS ONLY BIV’s exclusive lists are online in a new and better format that enables readers to search and sort.

Also check out BIV’s digital edition – the full paper online

Now modified for your mobile device.

news

BUSINESSVANCOUVER September 16–22, 2014

5

Property owners cash in on West End community plan Development | $120

By Glen Korstrom gkorstrom@biv.com

H

igher density allowances under Vancouver’s new and controversial West End Community Plan (WECP) have increased property prices along major thoroughfares and spurred several real estate transactions, according to industry insiders.

Bosa Properties and Kingswood Properties’ $120 million acquisition last month of the former Crown Life building at 1500 West Georgia Street is the latest and priciest of these transactions to close.

The WECP provides the policy framework for the site’s owners to build a 400-foot tower on a 6,500-square-foot base in the site’s courtyard, which is now a plaza and pool.

Bosa and Kingswood bought the 37-year-old, 200,000-squarefoot green-glass tower from the Healthcare of Ontario Pension Plan (HOOPP).

Both K i ngswood president Lorne Segal and a HOOPP representative confirmed to Business in Vancouver that a density hike on the site thanks to the WECP was a key factor in the deal.

HOOPP’s business plan is to

million office tower sale spurred by new policy that allows extra density When the WECP was approved, it made the whole property more valuable

[] Bob Levine principal, Avison Young

own long-term, income-producing properties, not develop buildings.

“W hen the W ECP was approved, it made the whole property more valuable,” explained Avison Young (AY) principal Bob Levine, who helped broker the deal alongside fellow AY principals Michael Gill and Darrell Hurst.

Segal told BIV that he has been interested in the site for years but that he and partner Colin Bosa would not have bid $120 million for it had they been buying only a building.

“Clearly, you couldn’t justify the purchase price for the building itself,” Segal said. “The bonus was that at some point there would be an opportunity to develop something that would complement the building.”

The 1500 West Georgia Street transaction follows Wall Financial Corp.’s (TSX:WFC) $83.5

Kingswood Properties president Lorne Segal partnered with Bosa Properties CEO Colin Bosa to buy 1500 West Georgia Street from Healthcare of Ontario Pension Plan for $120 million | Richard Lam

million purchase from a private family of the city block bounded

by Alberni, Nicola and Broughton streets and the lane between Alberni and Robson streets.

City of Vancouver assistant director of planning Kevin McNaney

told BIV that Wall Financial’s property is similar to the 1500 West Georgia Street site in that the WECP gives its owner the opportunity to build a 400-foot tower on a 6,500-square-foot footprint.

The WECP also affected a third site that recently changed hands.

In June, an unnamed buyer bought Davie Street’s Best Western Sands Hotel from B.C.-based R.P.B. Holdings for $31 million in a transaction that, according to brokers, ranks as one of the most expensive per unit in B.C. history.

Levine said that while these recent transactions are large, the WECP did not provide each with the same density bump.

“Different sites have different designations,” he said. “On 1500 West Georgia, you could build condominiums there basically as you see fit.

“At the Sands site, [the city] will limit you to have 20% social housing or if you don’t do condominiums you could do market rental.”

But critics such as West End Neighbours director Randy Helten and Vancouver Cedar Party mayoral candidate Glen Chernen say that little positive will come from these transactions even though McNaney stressed that WECP also addresses the need for amenities.

“We’re looking at density being dumped on the neighbourhood and losing community amenities,” Helten said. •

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BUSINESSVANCOUVER September 16–22, 2014

New tenants revitalize Kerrisdale, retail | National,

international tenants take space as lease rates dip

By Glen Korstrom gkorstrom@biv.com

T

he tony, established shopping district of Kerrisdale is undergoing a transformation, with more than half a dozen for-lease signs dotting the several blocks between West Boulevard and Balsam Street.

Some of the space has been ta ken by compa n ies such as Kin’s Farm Market, Tim Hortons, Luminous Nail Spa and Sotheby’s International Realty Canada.

The largest empty space by far is the 9,400-square-foot former Pier 1 Imports Canada outlet at the corner of West 41st Avenue and Vine Street, which is owned

by H.Y. Louie group of companies’ Branku Holdings.

Because H.Y. Louie also owns the MarketPlace IGA grocery chain, rumours have swirled that the space could soon be home to the neighbourhood’s only full grocery store. H.Y. Louie spokeswoman Wendy Hartley was quick to tell Business in Vancouver, however, that a MarketPlace IGA will not go in the space.

“It’s definitely a prominent spot and a good-sized space,” Colliers vice-president of retail Doug LePatourel told BIV. “Whatever goes in there will be fairly significant.”

He cited steadily rising density in the area as one reason why he believes the neighbourhood

CBRE’s vice-president for retail, Michael Mylett, believes that the surge of retail vacancies in Kerrisdale is giving retailers seeking to lease space unprecedented choice | Richard Lam

Vacancies definitely trend the rental rates down a bit

[] Doug LePatourel vice-president of retail, Colliers

remains a strong retail strip.

Construction continues on One Kerrisdale Place, which will add three floors of condominiums above 2,700 square feet of retail space near West 41st Avenue and Yew Street.

Other densification could come

if the City of Vancouver approves GBL Architects’ plan to replace a dilapidated two-storey building with a new, four-storey, 38-condominium, mixed-use development on West Boulevard near West 44th Avenue.

LePatourel said the recent spate

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of vacancies has softened lease rates in the prime few blocks between Balsam Street and West Boulevard on West 41st Avenue, but he added that the vacancies also provide a prime opportunity to get space while prices are lower.

“T he for-le a se sig n s h ave pushed down lease rates a little bit,” he said. “That happened on south Granville too. Typically there was zero vacancy on south Granville and then two or three years ago there were several. So vacancies definitely trend the rental rates down a bit.”

Rates in those prime blocks of West 41st Avenue now tend to be between $35 and $50 per square foot. That contrasts with rates that have touched $90 per square foot on south Granville Street and have touched $200 on Robson Street.

CBRE’s vice-president for retail, Michael Mylett, believes the vacancies are giving retailers the luxury to be able to choose from many different storefront sizes.

“Kerrisdale remains a strong retail neighbourhood,” he said.

“Foot traffic is incredibly good and a lot of loyal customers go there. T hey shop at Hills [of Kerrisdale], do their banking, buy produce and bread and have coffee with friends. All of the coffee shops are always full.”

He added that although the area is often regarded as having an older demographic, there are students from the three area schools – McGee Secondary, Point Grey Secondary and Crofton House – walking around at lunch and after school.

Remaining vacant retail sites in the area, such as a former Ed’s Linens on West 41st Avenue

NEWS

BUSINESSVANCOUVER September 16–22, 2014

7

but many stores remain empty Kerrisdale remains a strong retail neighbourhood.

Foot traffic is incredibly good and a lot of loyal customers go there

[] Michael Mylett vice-president for retail, CBRE

near West Boulevard, have attracted enquiries from several interested parties, said David McCann, who represents that building’s owners, John and Gary Anderson.

M ichel le Ha l la ra n , w h o s e family company Marco Investments Ltd. ow n s more t h a n 11,000 square feet in several buildings on West 41st Avenue, said that she has been fielding multiple enquiries related to her one vacancy – a 1,721-squarefoot space t h at i s lea sed to kitchenware store Call the Kettle Black until the end of November. “ W h at’s h appen i ng i n t he neighbourhood is great with all these new tenants coming in,” she said. “The new condo developments are also really good for the area.” •

Produce seller ripe for expansion 27-location Kin’s Farm Market to open new stores in Kerrisdale, West End and Coquitlam Kin’s Farm Market plans to open new locations in Kerrisdale, Coquitlam and the West End within the next few months, bringing the company back to 30 locations across Canada.

The 27-year-old Richmond-based company, which got its start as a fruit stand at Granville Island Public Market before opening its first location at Richmond’s Blundell Centre in 1987, had sprouted to more than 30 locations by 2011.

A few closures followed, but the company’s vice-president of operations, Queenie Chu, told Business in Vancouver that the time is once again right for expansion.

“Some of our new locations are in areas we have been looking at for 10 years,” she said. “In Kerrisdale, we have been wanting to have a store there for a long time.”

Kin’s has leased about half of the 5,800-square-foot former Shopper’s Drug Mart space at 2225 West 41st Avenue and plans to open in the next few months. Similarly, the company plans to open at the corner of Denman and Comox streets this fall in space that had housed South Van Produce for decades.

“We had been looking at Denman for a long time and then all the rents went up,” Chu said. “Everybody was asking for more rent. We waited for an opportunity. Because we sell produce we can only pay so much for a lease in a high-traffic area.”

The third Kin’s opening in the next few months will be in Coquitlam’s Como Lake Village, which is anchored by a No Frills grocery store.

“What Kin’s has always done well has been to have a tight business model, which is strictly to sell produce: fruits and vegetables in a very inviting setting,” said retail analyst and DIG360 Consulting Ltd. principal David Gray. “The stores are really clean and produce is well displayed.”

Indeed, although the chain does sell milk, it has not strayed into also providing canned goods or rice as have other grocers that started out as fruit stands, such as West Valley Produce on Bute Street.

Gray once examined customer buying habits at Vancouver’s City Square Shopping Centre on Cambie Street and discovered that shoppers tended to buy groceries at the mall’s Safeway and then went to

Kin’s Farm Market vice-president of operations Queenie Chu is excited that her chain is back in expansion mode with three new stores opening in the next several months | Richard Lam the Kin’s market for produce. So, he said, locating near grocery stores has not hurt Kin’s.

The only misstep that Kin’s made was to enter Ontario in 2009 by opening only two locations, Gray said.

Chu agreed that the Ontario rollout has been disappointing.

One of the two Ontario Kin’s markets has since closed, with the other one remaining open in part for lease reasons.

“I would guarantee that that one store is staying open for financial reasons,” Gray said. “There’s no retailer of their size that would keep a money-losing store open unless the penalty of closing it was greater than what they might be losing.”

Chu said that a second attempt at cracking the Ontario market could be on the horizon but that it would take place only if the company were to open about 20 stores in quick succession. •

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2014-09-08 1:44 PM

8

BUSINESSVANCOUVER September 16–22, 2014

NEWS

Labour

Teachers’ strike hurting small businesses, says CFIB Lost sales and employment disruptions are only two of the issues affecting small businesses resulting from the ongoing teachers’ strike, according to the results of a Canadian Federation of Independent Business (CFIB) survey published September 10.

The poll found that 43% of entrepreneurs believe the strike will hurt their businesses, with 60% citing sales as their No. 1 one concern. Employees with children having to stay home was in second place at 41%, followed by owners having to work longer hours (21%).

CFIB executive vice-president Laura Jones called the strike “disruptive.”

“Business owners are worried about their own businesses as well as the broader consequences of putting B.C.’s budget balance at risk,” she said.

The survey found that 66% of business owners believe that teachers should receive the same salary increases as what was negotiated by all other public-sector unions, while 13% say they don’t believe they should receive any increases at all. Five per cent of entrepreneurs say the teachers deserve to have their demands met.

Brent Granby

Meanwhile,B.C. teachers who have gone without strike pay since their union ran out of funds in mid-June may be getting some financial relief.

The BC Federation of Labour (BC Fed)

announced September 10 that it would provide $8 million to the British Columbia Teachers’ Federation (BCTF) in interestfree loans. The labour group raised the funds from several B.C. unions.

“This support will help ensure the government cannot undermine teachers’ rights through financial hardship,” BC Fed president Jim Sinclair said in a release.

Members of the BCTF voted September 10 in favour of going back to work if the government agrees to binding arbitration.

However, Education Minister Peter Fassbender has said arbitration is not an option.

real estate

Gulf widens in Vancouver between prices for first home and dream home The price gap between the starter home and the dream home is widening at a rate that risks keeping first-time homebuyers stuck in less expensive properties for much longer than anticipated, according to a study from the Canadian Imperial Bank of Commerce (CIBC).

The September 8 report stated that, on average, home prices in Canada have gone up 5%, but the

NEW LOOK, NEW FEEL AT NANAIMO REGIONAL GENERAL HOSPITAL BEING POWER SMART MAKES BUSINESS SENSE Nanaimo Regional General Hospital’s new 6,200 square metre Emergency Room and Psychiatric Intensive Care Unit is not your usual hospital wing: gone are the skimpy curtains between the beds, the stale air, the gloomy institutional paint on the walls.

Opened in fall 2012, the addition is bright, airy and fresh. It’s also incredibly energy efficient. By working with BC Hydro’s New Construction Program to energy-model the new addition, the designer was able to select and install a series of energysaving measures that will save an estimated 1.1 million kilowatt hours of electricity per year. These savings are enough to power around 100 homes for a year.

“For a small investment in the beginning, you get a long-term reduction on your operational costs year after year,” says Deanna Fourt, Director of Energy Efficiency and Conservation for Vancouver Island Health Authority. “We estimate payback at just seven years. And I believe the way the unit was designed has had a great effect on patients as well. It’s a calming and beautiful space.”

prices of Vancouver homes sold for more than $1.1 million have gone up by nearly 18%. The gap between the so-called starter home and the dream home has widened by $200,000 in the past four years, according to the report. Meanwhile, homeownership rates among Canadians aged 25 to 35 have dropped from 55% in 2012 to 50% in 2014, according to the study.

mining

Government calls for more action on Mount Polley spill Imperial Metals (TSX:III) has not done enough to stop effluent from a collapsed tailings pond at the Mount Polley copper mine from getting into Hazeltine Creek, says the B.C. Ministry of Environment.

Following an inspection of the damaged tailings pond on September 4, a month after

the collapse, the Environment Ministry concluded that the company has not done enough to stop effluent from getting into Hazeltine Creek.

The ministry expressed concern that heavy rains could increase the amount of effluent from the tailings pond flowing into the river.

Retail

Lululemon reports 14% drop in net income in second quarter compared to a year ago

Deanna Fourt, Director of Energy Efficiency & Conservation for VIHA.

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Net earnings for Lululemon Athletica (Nasdaq:LULU) dropped in 2014’s second quarter compared with the same period last year, the company announced September 11.

This decrease to $48.7 million from $56.5 million last year comes in spite of revenues rising to $390.7 million for the quarter, compared to $344.5 million in the same quarter last year.

K biv.com

Lululemon showed a 21% jump in selling, general and administrative expenses. CEO Laurent Potdevin said the yoga-wear company has allocated $7 million to increase online sales, and chief product officer Tara Poseley said it is planning to refresh its product mix.The company has raised its outlook for fiscal 2014, forecasting earnings of $1.77 billion to $1.8 billion.

Go online to read these stories in full, along with much more business news updated daily at biv.com.

NEWS

BUSINESSVANCOUVER September 16–22, 2014

9

politics

COPE members name candidates for Vancouver municipal election For the first time in 12 years, the Coalition of Progressive Electors (COPE) is running a candidate for mayor. Meena Wong was chosen September 7 at a party nomination meeting held at the Japanese Hall, two days after a press conference was held on the steps of city hall to announce her candidacy.

COPE is the city’s only political party in which candidates are chosen by members, and it turns out yet another member, Anthony Guitar, also wanted to run for mayor but hit a paperwork filing error.

Not that it was close.

Wong earned 193 votes of the 216 ballots cast to become the left-wing party’s first mayoral candidate since Larry Campbell won a landslide victory in 2002.

It is the Vancouver Coastal Health mental health recovery worker’s second stab at seeking public office after running as the New Democratic Party candidate for Vancouver South in the 2011 federal election, where she came in third with 19% of votes.

If elected, Wong would be the city’s first female mayor and the first one of Chinese descent. She also served previously as an assistant to former Toronto city councillor

and NDP MP Olivia Chow, who is running for mayor of Toronto.

Wong, 53, said she wants to make North America’s most expensive city more affordable for non-affluent residents.

“We have a duty to each other and to this city to right what is wrong,” said Wong.

“We have a duty to our children who cannot afford to live in this city, we have a duty to seniors who cannot afford to age with dignity. … I think Vancouver housing prices are way too high, and as a city government, we need to look at that.”

Seven candidates for city council were

also picked from a total of 12 nominees.

Tim Louis, party co-chair and a former two-time councillor, earned the most votes overall with 179, followed by Sid Chow Tan, Audrey Siegl, Gayle Gavin, Lisa Barrett, Keith Higgins and Jennifer O’Keeffe.

John Yano and Wilson Munoz tied for the eighth and final spot; a decision as to which of them will run has not yet been announced.

The Vancouver municipal election will be held November 15.

– Vancouver Courier

transportation

Real estate

White Rock council to call on federal government to relocate railway tracks

Industrial property sales at odds with warning on northeast B.C. slowdown

For more than 100 years, the railway track that runs the length of White Rock’s waterfront has been a simple fact of life. But with rising concerns about dangerous goods and increased rail traffic, the city has said enough is enough.

White Rock council voted September 8 to formally begin work on approaching the federal government to have the rail line, owned by Burlington Northern Sante Fe, relocated away from the waterfront.

Michael Chu

Citing the recent approval of the Fraser Surrey Docks coal terminal expansion (which adds 640 train trips a year) as something of a tipping point, White Rock Mayor Wayne Baldwin brought forth a motion that would begin a formal appeal process through the Canadian government to have the tracks moved.

“With the Fraser Surrey Docks proposal to increase the number of trains … we have to do something,” Baldwin said.

– Surrey Now

Industrial real estate action in northeast British Columbia appears to belie a Central 1 Credit Union caution of an economic slowdown across the north.

Citing a slumping coal sector and “uncertainty” surrounding the future of the liquefied natural gas industry, Central 1 is forecasting the northern economy faces “a period of lower expansion this year and next.”

The northeast is anchored by Fort St. John, the second largest city in northern

B.C., and includes Dawson Creek, Tumbler Ridge and Fort Nelson.

“We saw a slowdown earlier this year, but the last six weeks are the busiest we have been in years,” said Ron Rodgers, owner and managing broker of NorthEast BC Realty Ltd. of Fort St. John.

As an example, he points to the near sellout of a 16-parcel industrial park just outside of Fort St. John, where 10 of the 4.5-acre serviced lots have sold this year and four more are pending.

K biv.com Go online to read these stories in full, along with much more business news updated daily at biv.com.

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10

BUSINESSVANCOUVER September 16–22, 2014

Surrey Lumber companies in Surrey and White Rock struggle to make inroads to India manufacturing | Fragmented

market has been a roadblock to Canadian exports, but some B.C. businesses have made promising connections on the subcontinent Patrick Blennerhassett

India lumber numbers

news@biv.com

I

n 2011 Parm Jhajj was a member of a City of Surrey delegation that travelled to Dehli to meet with the joint secretary of the Indian Federal Ministry of Agriculture. While there, Jhajj and his fellow delegates scored a historic win for Canadian exports by successfully advocating for the acceptance of Canadian cedar and SPF (spruce, pine and fir) into the Indian market.

Indian lumber buyers were concerned about the mountain pine beetle, which has ravaged trees across western North America.

“What’s happened in the past is people have been concerned about pine beetles, any sort of bacteria travelling from one country to the next,” said Jhajj, who runs Jhajj Lumber, a wholesale lumber distribution company. “So for India we have to make sure all of our wood is heat-treated. So by heat-treated we guarantee that any insects are gone.”

Jhajj – whose company focuses on the domestic industrial market with exports going to countries such as the United States, Mexico, Japan, China, Taiwan and the Arabian Gulf – was also able to line up a deal of his own on the 2011 trip, shipping five containers containing 175,000 board feet of B.C. SPF lumber to Port Kandla, India, to be used for new construction.

“Making that trip to India and getting a little bit of positive press out of it, it certainly helped us out,” he added.

City of Surrey councillor Linda Hepner, who was also on the trip, said Jhajj was instrumental in helping to break down some misconceptions about the mountain pine beetle, plus Canadian wood and international trade requirements in general.

“He made some significant inroads,” Hepner said. “I think fundamentally it actually shows a perfect example of cities being economic engines. And shows

$11.2m

Value of Canadian lumber shipped to India in 2013

25

Lumber’s place among Canadian exports to India in 2013, ranked by total value

$726m

Value of dried and shelled vegetables shipped from Canada to India in 2013 – our top export to that country Source: Industry Canada

Hardwood demand rising

Parm Jhajj, owner of Jhajj Lumber, said India has proved tricky when it comes to lumber wholesaling, however the country shows potential future promise | Richard Lam

There’s a lot of fragmentation in the market there, and because of that it’s very difficult for any one company to truly make a dent because there’s so many small players there

[] Parm Jhajj owner, Jhajj Lumber

the kind of successes we can have directly with businesses abroad.”

Jhajj said they got a chance to directly lobby the Indian government about key issues that were hurting lumber trade between the two countries.

“Tariffs are always a concern on saw lumber [in India],” he said.

“But it’s a whole lot less than it used to be. For years and years it was about 40%, and it’s a whole lot less now. So it was a recognition by the powers that be there that things are changing. … [Indian] wholesalers brought logs in and sliced and diced there, from the beginning … they discouraged manufactured lumber from other parts of the world. And now reality had set in for them, and because of that they started relaxing the tariffs.”

Jhajj added that while headway has been made, there’s still a long way to go.

“There’s a lot of fragmentation in the market there, and because of that it’s very difficult for any one company to truly make a dent because there’s so many small players there. And so you match up with somebody and you do maybe 10, 15, 20 containers and that seems to be the max for a lot of the guys down there. There’s not any continuity as say there is in Japan or Taiwan or Korea or China right now.”

Hank VanOosten, a lu mber trader at Westminster Industries Ltd. based in White Rock, echoed Jhajj’s statement.

“I agree with Parm with respect to continuity,” VanOosten said.

“In some cases the mechanics required to secure orders, especially the letters of credit, were such an ordeal I found it really wasn’t worth the effort for small orders of up to 20 containers. I have had a much easier time selling lumber

India’s demand for hardwood logs, used primarily for furniture and molding, is growing, but the country’s main suppliers (Indonesia, Burma and Malaysia) are running out of wood due to illegal logging and overharvesting.

This has created opportunities for B.C. suppliers, said Jhajj, who is considering opening up a warehouse in India in 2015.

“We’re looking at it very, very seriously. The long-term potential is definitely there. The world isn’t growing any more trees and more and more jungles are being replaced by farmland or by developments. We’re fortunate enough here that we’ve got an abundance. If anything the Canadian industry is going to dominate more on a world scale than they have in the past.”

to secondary remanufacturers in B.C., who have a steady flow going into the Indian market.

“Obviously this form of double wholesaling only works in a Bull market, but makes for good clean business.” •

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BUSINESSVANCOUVER September 16–22, 2014

11

technology Cloud raises corporate data security concerns systems | Experts

offer tips about keeping intellectual property safe after nude photos of Jennifer Lawrence and other celebrities were stolen from their phones and shared online

BY Tyler Orton torton@biv.com

A

s hundreds of nude photos of celebrities flooded the Internet Labour Day weekend, speculation ramped up over possible vulnerabilities in Apple’s (Nasdaq:AAPL) iCloud system.

Following an internal investigation, Apple said the private pictures were stolen as a result of targeted attacks on celebrities’ phones – not because of a security breach within its cloud system.

But the case highlighted the fragility of computer security for both consumers and corporations as the use of cloud computing continues to expand.

The cloud is a term used to describe accessing traditional computer services through any device connected to the Internet. Instead of connecting to it from a desktop hard drive, data is stored in offsite servers that can be accessed online.

“Because [the cloud] is different, because it is new, people have a false sense of security to the old ways,” said Dave Weisbeck, chief strategy officer of Visier. “But they are not secure. There are fundamental flaws.”

His Vancouver-based startup provides organizations such as Yahoo Inc. (Nasdaq: YHOO) and the City of Edmonton with workforce analytics through the cloud.

Weisbeck said it’s far riskier to carry around a laptop with proprietary information than keeping it in a secure cloud system. He added that anyone unconvinced about the cloud’s security should remember it’s in the best interest of companies to ensure their clients’ data is protected.

For instance, a company will h ave establ i shed m i n i mu m

Because [the cloud] is different, because it is new, people have a false sense of security to the old ways

[] Dave Weisbeck chief strategy officer, Visier

security standards clients should be aware of. SOC 1 (service organizational control) – pronounced “sock one” – covers checks and balances to ensure no single employee’s negligence could result in a massive data breach; SOC 2 outlines the steps taken to ensure privacy and protection.

“You know when companies have those [standards], they’re doing the right things,” Weisbeck said. “It’s not proof there will never be an issue – they’re doing the right things to make certain that the odds of an issue are next to none.”

Mark Cunningham, president of Dun and Bradstreet’s (D&B) (NYSE: DNB) Cloud Innovation Centre in Vancouver, said it’s also important for cloud vendors to use plain English when educating clients about how the system works and why it’s secure.

“We don’t wait for them to ask questions, we tell them up front.

We go, ‘Here is the way we architected our product.’ It becomes a selling point.”

D&B has the largest database containing business intelligence and information on corporations worldwide, which is why Cunningham said it’s so important to assure enterprise clients that their information is secure. But when it comes to the consumer end, he said completing five security procedures to access a person’s

Instead of storing data and programs on a desktop, cloud computing technology keeps it stored in off-site servers that can be securely accessed by users through the Internet

iCloud is overkill. “The consumer world is trying to figure out how do we create a secure environment but also make it as frictionless as possible and make the experience as simple as possible, otherwise we’ll drive consumers away,” Cunningham said.

The victims of the celebrity photo breach fell prey to what’s known as a “brute-force attack.”

This occurs when hackers target usernames, passwords and security questions to break into someone’s account.

Weisbeck and Cunningham both said consumers must get in the rhythm of changing their usernames and passwords once a month to prevent a similar situation from happening.

Meanwhile, the nude photo data breach will also likely convince cloud providers to do more to

Mark Cunningham, president of Dun and Bradstreet’s Cloud Innovation Centre in Vancouver, says cloud vendors must speak in plain English when explaining cloud security procedures to potential clients

assure corporate clients that their data is safe.

Said Cunningham: “You’re going to see a lot more vendors

leading with [security measures] in the pitch rather than making it Slide 28 [in a PowerPoint presentation].” •

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BUSINESSVANCOUVER September 16–22, 2014

realestate Development | Metro Vancouver and B.C. housing starts warm up in August 20,271

Number of housing units on which construction began during August in Metro Vancouver

(the number is derived from six-month moving average of monthly seasonally adjusted

annual rates of housing starts)

18,339

Number of housing starts in the census metropolitan area during July

27,511

Number of housing starts during August in B.C. urban centres with 10,000 or more people

25,515

Number of housing starts in B.C. urban areas during July

Source: Canada Mortgage and housing corp.

Japanese look to British Columbia for wood, wisdom; B.C. teachers’ standoff the legacy of lost HST dollars

real estate roundup Peter Mitham

Rising opportunities Tall wood buildings were a key focus for international buyers that industry association BC Wood hosted the first week of September.

B.C. building code changes allowed wood buildings of up to six storeys in B.C. starting in 2010, and more than 20 structures have been completed in the past three years. These include the new fitness centre at UBC Okanagan, Wesbrook Community Centre on the UBC campus in Vancouver, and the 30-metre tall, six-storey Wood Innovation Design Centre in Prince George.

The taller wood structures are supported using cross-laminated timbers (CLTs), which Structurlam Industries Ltd. of

Penticton produces (the timbers were a centrepiece of the speedskating oval built in Richmond for the 2010 Winter Olympics).

“Canada and B.C. are part of the cutting edge of this,” said Brian Hawrysh, CEO of BC Wood. “New building systems are being developed that are wood-based, that allow for the design and construction of these larger buildings.”

Japanese buyers are expressing particular interest in developments in B.C. Wood is a traditional building material in Japan, and B.C.’s proximity to and historical trading ties with the country make it a natural source for timber.

Japan approved the use of CLTs in construction in 2013 and the first structure using them was completed this summer. Standards are still being refined, but the government is encouraging their use and identifies Canada as a model.

“Wired and dangerous” Japan was also well represented at last week’s International Housing and Home Warranty Conference in Vancouver. Tokyo

will host the 2017 conference and accounted for 40 of this year’s 200 registered delegates.

B.C. is not unfamiliar with the challenges and importance of home warranties, and the leaky condo crisis precipitated the requirement for all new homes to be insured against defects.

Yet perhaps one of the most important legacies and lessons the crisis bequeathed to the era of social media is the importance of responding quickly and transparently to what conference presenter Paul Cardis, founder and CEO of Wisconsinbased reputation management firm Avid Ratings, called consumers’ “pain points.”

Addressing home deficiencies and defects isn’t simply a question of workmanship or insurance, Cardis explained, but one of accountability.

While crusaders such as James Balderson of the Coalition of Leaky Condo Owners established websites to hold builders accountable, social media now welcomes users to post comments without the trouble of securing rights to a domain name. And from there,

the issue can assume a life of its own independent of the original complainant.

“We’re dealing with new rules of engagement,” Cardis said, describing buyers and potential buyers as “wired and dangerous.”

Keeping on top of the issues requires engaging with consumers, respectfully listening to and addressing complaints, and being willing to fess up to honest mistakes so other consumers know that while companies aren’t perfect, they’re responsive and able to set things right.

“Whether we like it or not, the world has forced transparency on us,” Cardis said.

David Wallace, COO of Avid client Portrait Homes Ltd. of Richmond, said an occasional mistake builds trust rather than diminishes it.

“You’re not credible if you don’t have some honest mistakes to talk about,” he said.

Schooled Real estate was rooting for B.C. Premier Christy Clark in last year’s provincial election, and Clark personally thanked condo

Counterpoint interiors inC. Design | BuilD | Relocate | Facilitate

marketer Bob Rennie and developer Peter Wall for backing her during a surprise appearance before the Urban Development Institute the morning after her win.

Clark’s emphasis on resolving the province’s protracted dispute with the BC Teachers’ Federation in a fiscally responsible manner brings to mind Rennie’s forward-looking comments regarding that other bugbear of Clark’s tenure as premier: the harmonized sales tax (HST).

Speaking to the Canada Mortgage and Housing Corp. housing outlook conference in November 2010, Rennie warned that the HST – by then, subject to a binding referendum – was needed to pay for social services, including education.

Clark’s predecessor Gordon Campbell hadn’t made that case, Rennie contended, and hard times were ahead if voters didn’t embrace the tax.

Voters rejected the HST in 2011, and the rest, shall we say, is history – or a lesson in current events. • pmitham@telus.net

How to grow your business 1285 20140617 page Category

Sockeye supercycle: is B.C. ready to reap harvest?

Professional Real Estate Management Retail

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FISHING | Anywhere between seven million and 70 million sockeye salmon are projected to be returning to the Fraser River this year; the returns could generate huge revenue for the province and its fishing fleet, but that same fleet was ill-prepared for 2010’s record run | PAGE 4

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ISLAND ANGST: businesses are increasingly concerned about the changing face of Granville Island’s management and its commercial mix following Emily Carr University’s departure | Page 6

Feds loosen liquor laws but provincial protectionism prevails

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3 parcels (31 Acres, 34 Acres, & 37 Acres) Part of Parcel C N 1/2 & S 1/2 have already been developed and road access and water are available to the site. Area designated for Urban & Suburban Developments. Potentially allow upwards to 400 homes on 845 m 2 lots under the RS1 zoning. 5 min from Downtown Prince George.

with long-term lease available for $5,500,000 (8% yield)

Property Management Services

West End 24 Suite Apartment Building

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604.736.5611

Dan Schulz* 778.999.5758 Don O’Brien 604.714.4789 *Personal Real Esate Corporation

macdonaldcommercial.com

604.736.5611

12876 85th Ave, Newton, Surrey

Retail Centre with upside, Downtown Langley

• 41,000 SF Freestanding warehouse/office on 1.73 Acres of Land • Light Impact Industrial Zone

• 54,475 SF on 3.27 Acres • C-1 Zoning Permits up to

4.91 Acres Motel & Mobile Home Osoyoos, BC

150 Units per Acre Multi-Family Development • Under $140 per SF of building and $16 per

District • Zoning: Mobile Home Park - High

• $6,475,000

buildable SF • Shows over a 7% Cap when leased at $10 per SF average • $7,600,000

Density Residential (R-7) & Avalon Hotel Downtown Commercial (C-1) • $2,395,000

Vic Sandhar 604.590.2444

Chris Midmore, Matt Nugent Nick Goulet, Stuart Wright 604.736.5611

Although this information has been received from sources deemed reliable, we assume no responsibility for its accuracy, and without offering advice, make this submission subject to prior sale or lease, change in price or terms and withdrawal without notice.

Located on Main St. (Hwy 97) in Downtown

Mike Riesterer 604.315.2984 Macdonald Commercial Real Estate Services Ltd.

Expand your rEach—Grow your businEss | 604.669.8500 call to book ad space for the next issue

14

BUSINESSVANCOUVER September 16–22, 2014

AsiaPacific Beijing’s hard line on Hong Kong chills Taiwan-China relations

Asian outlook JOnathan Manthorpe

Taiwan’s highly educated and qualified young graduates are angry over the lack of well-paying jobs or even suitable employment as governmentprotected industrialists take their factories and investment to China

C

hina’s heavy-handed rejection of universal suffrage in Hong Kong is threatening to derail the already wobbly economic relations between Beijing and Taiwan.

Beijing’s decision to only allow Hongkongers to elect their governor, the chief executive, from a list of candidates carefully vetted for their loyalty to the Chinese Communist Party has confirmed the worst fears in fiercely democratic Taiwan.

Even Taiwan’s President Ma Ying-jeou, who has pushed

Hundreds of thousands of people protest Taiwan’s trade pact with China outside the presidential building in Taipei in March 2014 |

Images By Kenny,

Shutterstock

JAPAN

INDONESIA

LAOS

INDIA

AUSTRALIA

Tax hike hurts economy

More jobs reserved for disabled

Government targets illiteracy

New IP law in the works

Payouts mismanaged

The increase in Japan’s consumption tax is biting the economy far harder than was anticipated. The administration of Prime Minister Shinzo Abe is likely to review a planned second rise next year.

Japan’s gross domestic product shrank 1.8% in the second quarter of this year after withering 1.7% in the first three months.

Much of the reduction is being attributed to drops in private consumption and investment sparked by the consumption tax hike from 5% to 8% in April. The tax increase is aimed at lifting government revenue and reducing national debt.

The administration of the Indonesian capital, Jakarta, is significantly increasing the proportion of physically disabled people who must be hired for municipal jobs. “Disabled people should have the same chance as other applications to become civil servants,” said a statement from the Regional Staffing Agency. At the moment, Jakarta requires that only 1% of jobs must go to the physically disabled. This was raised to 5% last week. Jakarta’s administration is seeking 1,333 new employees this year, including 372 for technical jobs, 320 in the economic sector and 250 in the education department.

The government of Laos plans to wipe out illiteracy by the end of next year, the deputy minister of education said last week. Lytou Bouapao made the announcement to mark International Literacy Day on September 8. He said there are now 144 “literate districts” out of a total of 148 in the country and he expects to be able to declare the remaining four “literate communities” by the end of 2015.

However, it is unclear on what basis the ministry’s calculations are made. UNICEF, the United Nations children’s welfare agency, reports that last year the literacy rate in Laos was 72.7%.

India is to set to produce a new intellectual property law to try to remove some of the irritants facing Prime Minister Narendra Modi’s visit to the United States later this month.

Last week, commerce and industry minister Nirmala Sitharaman said the aim is to bring more clarity to existing patent laws and to give more protection to Indian industry.

There has been a dust-up recently between the U.S., joined by the European Union, and New Delhi over what is seen as excessive protection of the Indian pharmaceutical industry and questions about the quality of its products.

Australia’s federal government is avid to shed civil service jobs, but has discovered it is already short of enough payroll specialists to manage the golden handshake process properly. The Australian government plans to spend about $1 billion over the next five years in payouts to departing civil servants. But a local human resources consultancy, White Pillar, says the shortage of experienced payroll staffers has reached crisis point and they can’t cope with the workload. White Pillar has reviewed payouts to civil servants in several government departments and found that not one had been calculated correctly.

Selling your business?

You’ve got one shot!

Divestitures • Mergers & Acquisitions • Financial Advisory • Valuation & Fairness Opinions • Restructuring

AsiaPacific

Public opinion has forced Taiwan’s president, Ma Ying-jeou, to step back from his pursuit of friendlier relations with China  |  Shi Yali, Shutterstock

through a series of measures aimed at thawing the 60-year deep freeze in cross-strait economic and political relations since he came to power in 2008, has had to bow to public opinion and take a brusque attitude towards Beijing. Hong Kong’s drive for democracy and to maintain the rule of law will “receive the full backing of the Taiwanese,� Ma said after Beijing announced its verdict.

Taiwan’s relations with Beijing were already on a slippery slope because the island’s 23 million people are deeply suspicious that Ma, whose popularity rating is only just into double figures, intends to extend economic deals with Beijing into talks aimed at some form of political union. Nearly 90% of Taiwanese want to keep their independence.

Last month Ma fired his chief policymaker on China and one

of the top negotiators with Beijing on suspicion that Beijing had recruited him as a spy.

Beijing’s apparent betrayal of its best friend in Taiwan has put Ma firmly on the defensive, especially over the latest economic deal with China, intended to lower market barriers in 144 service industry categories including banking, tourism and health care. This deal has already excited popular outrage, and members of parliament avoided addressing it in a special summer session. The agreement is likely to be shelved until at least after local elections in November, when voters will have the opportunity to give a verdict on Ma’s Kuomintang party ahead of national elections in 2016.

But the speculation in Taiwan is that the deal is so unpopular it is probably dead. In March and April thousands of student-led protesters occupied parliament, the Legislative Yuan, demanding clause-by-clause examination of the agreement, which they said gives China too much influence over Taiwan’s economy. The members of what has become known as the Sunflower Movement are also outraged by the results of the 20 economic agreements the Ma administration has signed with Beijing so far. These have opened up cross-straits contact, trade and investment for the first time since the Communists took over

Canada mulls Taiwan’s membership in planned trade partnership Earlier this year Taiwan asked Canada for its support for the island nation of 23 million people to join the Trans-Pacific Partnership (TPP).

Because of Taiwan’s ambiguous international status – China claims the island and pressures its diplomatic partners not to have official relations with Taipei – the message was passed through a roundabout route. A visiting group of Liberal parliamentarians was asked to carry the request back to Ottawa.

Twelve countries – Japan, Canada, Mexico, Malaysia, Vietnam, Peru, Australia, United States, Singapore, New Zealand, Chile and Brunei – are negotiating the TPP,

in China in 1949 and Taiwan became an independent nation.

But they have also brought that most pernicious of imports for those who trade with China: growing disparity between the very wealthy and the rest.

Taiwan’s highly educated and qualified young graduates are angry over the lack of wellpaying jobs or even suitable employment as governmentprotected industrialists take their factories and investment to China.

For Beijing, the fallout from

which is designed to minimize trade and investment barriers among members. It is a natural target for Taiwan because the TPP does not, so far, include China, which usually presses countries not to sign trade agreements with Taipei unless they already have a deal with Beijing.

But the prospect of Ottawa acting as a stalking horse for Taipei on TPP membership raises questions.

These were examined in a recent paper for the Asia-Pacific Foundation of Canada by Hugh Stephens, executive-in-residence at the foundation and a former senior Canadian diplomat in Taipei, and Douglas Goold, senior editor at the foundation.

They concluded that Ottawa should support Taiwan’s TPP membership, but with qualifications.

A prime requirement for Canadian

its Hong Kong decision is a major setback in its campaign to achieve sovereignty over Taiwan, which it claims to own. The “one country, two systems� formula by which Hong Kong was returned by Britain to Chinese rule in 1997 with a guarantee that it would keep autonomy for 50 years was intended to lure Taiwan into a similar agreement. That bait has been accompanied by decades of blackmail by Beijing in which it insists that countries such as Canada, the United States and

BUSINESSVANCOUVER September 16–22, 2014

support, wrote Stephens and Goold, “is a demonstration by Taiwan that it is ready to take on the high level disciplines – i.e. more comprehensive and complete dismantling of trade barriers – of the TPP.�

Then there is the problem of whether China would try to block TPP membership for Taiwan. The authors believe that if all 12 TPP members invite Taiwan to join, it would be hard for China to object.

But Goold and Stephens conclude that Taiwan should not be invited to join the TPP until the agreement among the current 12 is up and running. When that happens depends entirely on Washington, and it is increasingly unlikely the U.S. Congress will give Barack Obama, or the next U.S. president, “fast track� treaty approval power in the foreseeable future.

those of the European Union can only have access to the Chinese market if they limit their relations with Taiwan.

So Taiwanese have always been suspicious of Beijing’s true objectives, and the rejection of democracy in Hong Kong, accompanied by a crackdown on freedom of expression, has only confirmed those fears. • Jonathan Manthorpe (jonathan. manthorpe@gmail.com) has been an international affairs columnist for nearly 40 years.

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16

BUSINESSVANCOUVER

BUSINESSVANCOUVER

September 16–22, 2014

September 16–22, 2014

BIV.com

Welcome to our new look online Going mobile: Business in Vancouver’s revamped website optimized for mobile devices and daily delivery of local business news and analysis Editor’s note

Business in Vancouver’s new website delivers B.C.’s best business news when you need it and in the format you need it in. Optimized for all devices, the site provides an excellent reading experience and simple navigation for continuous news coverage, analysis and BIV’s exclusive lists.

Timely business intelligence separates winners from losers in the marketplace, but timely last year is far different from timely today; a leader in delivering local business intelligence since 1989, Business in Vancouver has now radically overhauled the online offering of that intelligence with a retooled and reorganized website that gets business intelligence into your hands faster and easier

EXPLORE

ARTICLE PAGES

Introducing BIV’s Explore page for easy navigation to all the content on biv.com. Search for articles by section or author, look up your favourite columnist, read the latest digital edition and see what stories are trending at What’s Happening Now.

Article pages are simplified for a smoother reading experience in your office or on the move.

Digital Edition Now your favourite print newspaper, BIV, is online in digital form. So too are the latest copies of Business in Vancouver Media Group’s library of magazines, including Green Space, Meeting Places and Invest in B.C.

Living/Working

Dashboard Lets you save articles to read later and save searches

Exclusively online, our weekly Living/Working section includes video interviews, graphics, ideas on how to spend your time and money, and much more.

Lists BIV’s exclusive lists are now searchable and sortable

introducing the new responsive biv.com | desktop + tablet + mobile

17

16

BUSINESSVANCOUVER

BUSINESSVANCOUVER

September 16–22, 2014

September 16–22, 2014

BIV.com

Welcome to our new look online Going mobile: Business in Vancouver’s revamped website optimized for mobile devices and daily delivery of local business news and analysis Editor’s note

Business in Vancouver’s new website delivers B.C.’s best business news when you need it and in the format you need it in. Optimized for all devices, the site provides an excellent reading experience and simple navigation for continuous news coverage, analysis and BIV’s exclusive lists.

Timely business intelligence separates winners from losers in the marketplace, but timely last year is far different from timely today; a leader in delivering local business intelligence since 1989, Business in Vancouver has now radically overhauled the online offering of that intelligence with a retooled and reorganized website that gets business intelligence into your hands faster and easier

EXPLORE

ARTICLE PAGES

Introducing BIV’s Explore page for easy navigation to all the content on biv.com. Search for articles by section or author, look up your favourite columnist, read the latest digital edition and see what stories are trending at What’s Happening Now.

Article pages are simplified for a smoother reading experience in your office or on the move.

Digital Edition Now your favourite print newspaper, BIV, is online in digital form. So too are the latest copies of Business in Vancouver Media Group’s library of magazines, including Green Space, Meeting Places and Invest in B.C.

Living/Working

Dashboard Lets you save articles to read later and save searches

Exclusively online, our weekly Living/Working section includes video interviews, graphics, ideas on how to spend your time and money, and much more.

Lists BIV’s exclusive lists are now searchable and sortable

introducing the new responsive biv.com | desktop + tablet + mobile

17

18

BUSINESSVANCOUVER September 16–22, 2014

finance

Ivanhoe Energy (TSX:IE) weekly price gain

D 21%

Formation Metals (TSX:FCO) weekly price gain

D 21%

datapoints

BC

’s labour market turned in another uninspiring performance in August, showing that the provincial economy remains in a low-growth state. While B.C. managed to add jobs in August, compared with a nationwide contraction, growth remained sluggish and generally insignificant. Employment rose 0.1% to a seasonally adjusted 2.33 million persons.

Unemployment increased to 6.1% of the labour force.

Below the surface of the weak headline numbers were even softer details. While employment was up on the whole, gains were entirely attributed to part-time work, which rose by 3.3% compared with July. In contrast, fulltime employment reversed the previous month’s increase and shrank 0.8%. On the whole, real employment (hours worked in the economy) was flat compared with July.

Among industries, there was plenty of variation in growth with half of the 16 sectors adding workers. While most changes were insignificant, stronger gains were observed in the utilities sector, while finance, insurance, real estate and leasing bore most of the

The number of people employed in B.C. rose in August, but full-time employment fell compared to July 2,350

2,300

2,250

2,200

2,150 2007

2008

2009

2010

2011

2012

2013

2014

Sources: central 1 credit union, statistics canada

Labour market indicators in B.C., monthly

B.C.’s low employment rate (under 60%) shows an economy creating jobs slower than the population requires 9

64

8

63

7 62 Per cent

Bryan Yu

B.C. employment, monthly

Thousands of persons

Data Points

losses.

As we have emphasized in the past, labour market data can fluctuate significantly month to month, making it unwise to draw conclusions from a single month. The trend matters more in gauging performance. The key theme for the labour market is that hiring remains soft. Average employment growth through the first eight months was up only 0.6%, with most of the gain owed to an upshift early in the year.

Meanwhile, it has been a part-timer’s market.

Full-time employment was unchanged from a year ago – contributing to little change in the number of actual hours worked (real employment) from a year ago.

The employment rate, which measures employed persons relative to the working-age population, remains below 60% and is down about half a percentage point from a year ago and down from 63% in 2007-08, pointing to an economy generating jobs at a slower pace than the population requires.

Soft employment growth is forecast to continue, but we expect more employers to creep back into hiring mode.

Broader economic growth is driving a pickup in exports, while small-business confidence has been strong in recent months, which should drive hiring. Annual employment growth is now forecast to reach about 0.8%.•

LABOUR

Per cent

Jobs added in August but trend remains soft

6 61 5

60

4

3 2007

2008

2009

2010 Unemployment rate (L)

2011

2012

2013

2014

59

Employment rate (R)

Bryan Yu is an economist at Central 1 Credit Union.

Sources: central 1 credit union, statistics canada

money & finance

October 2, 2014 Register at www.biv.com/events/biv/money-finance

Moderator:

Robert Napoli Vice President, First West Capital

WHERE: The Pan Pacific Hotel Crystal Pavilion 999 Canada Pl. #300 Vancouver, BC

Panelists:

Bruce Constantine President, Espro Inc

AGENDA: 7:00 am - 7:45 am: Registration & Breakfast 7:45 am - 9:00 am: Panel Discussion 9:15 am - 10:15 am: Roundtable Sessions (optional)

Axel Christiansen Managing Director, BC/Yukon, BDC Capital

PRICE: Subscribers: $49 Non-subscribers: $59

Katri Ulmonen International Tax Services, MNP LLP

Presented by: Sponsored by:

Patrick Payne CEO, QuickMobile

finance

D 19%

Lupaka Gold (TSX:LPK) weekly price gain

F 28%

First Point Minerals (TSX:FPX) weekly price drop

Jayden Resources (TSX:JDN) weekly price drop

A comprehensive snapshot of B.C.’s economy that includes forecasts and key indicators to provide business decision-makers with more tools to help them understand the economy’s strengths, weaknesses and direction. Compiled by Jen St. Denis

EXPORTS B.C. export growth year-over-year by commodity

B.C. export growth year-over-year by country

Lower shipments of coal (included in energy) and copper offset gains made in forestry and consumer goods in July

After making gains in 2014’s first six months, exports fell in July but are expected to regain momentum United Kingdom

Solid wood

Germany

Pulp and paper

Mainland China

Agriculture and food

Hong Kong

Fish

Taiwan

Metallic mineral products

Japan

Fabricated metal products

South Korea

Energy

India

Machinery and equipment

Australia

Plastics

Mexico

Chemicals

United States

Apparel

Other

Textiles

Total international exports

All other

0%

0%

0%

%

%

0%

-2

-4

40

20

0% -10%

%

60

0% 10% 20% 30% 40% 50% 60%

-2

Change 2013-2014 Source: bc stats

Source: BC stats

B.C.’s top five exports

Resources dominate B.C.’s exports, and the value of the province’s annual imports outweighs that of its exports

B.C.’s top five imports

Automotive products and oil are the province’s top annual imports 30

6

Billions of dollars

Billions of dollars

4

3

2

20 15 10 5

1

s ar

C r

L

al

Co

lp

Pu

Co

p

r pe

s

e

or

l

Oi

d an

l

Cr

ud

i eo

a

rp

Ca

s rt

ed

l

s

oi

in

f Re

ga

Source: BC stats

The following is a list of stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed the week ending September 10. The information comes from a compilation of required reports filed with the BC Securities Commission obtained from DisclosureNet.com.

Insider Graham Edward Saunders, officer Company: Canaccord Genuity Group (TSX:CF) Shares owned: 197,185 Trade date: September 4, 5 Trade total: $620,762 Trade: Sale of 50,000 shares at prices ranging between $12.25 and $12.42 per share Insider William L. Hunter, director Company: Cardiome Pharma Corp. (TSX:COM) Shares owned: 560,000 Trade date: September 4, 5 Trade total: $335,290 Trade: Acquisition of 50,000 shares at prices ranging between $6.65 and $6.74 per share Insider Anthony Alvaro, officer Company: Terrace Energy Corp (TSX:TZR) Shares owned: 3,945,000 Trade date: August 18, 19 Trade total: $180,500 Trade: Acquisition of 100,000 shares at prices ranging between $1.80 and $1.81 per share

25

5

be

Petaquilla Minerals (TSX:PTQ) weekly price drop

Insider Matthew Gaasenbeek, officer Company: Canaccord Genuity Group (TSX:CF) Shares owned: 344,046 Trade date: September 4 Trade total: $2,048,500 Trade: Sale of 170,000 shares at a price of $12.05 per share

Change 2013-2014

um

September 16–22, 2014

19

F 23%

INSIDERTRADING

dashBoard

-6

F 24%

BUSINESSVANCOUVER

rt

h

ve

n

ra

st

d oo

o sp

e icl

G

Source: BC stats

Insider Glenn Pountney, 10% owner Company: VMS Ventures Inc. (TSX:VMS) Shares owned: 18,996,000 Trade date: August 26, 27, 28, September 2, 3, 4, 5 Trade total: $127,915 Trade: Acquisition of 432,500 shares at prices ranging between $0.29 and $0.30 per share Insider Michael D. McInnis,

BIV

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director Company: True Gold Mining Inc. (TSX:TGM) Shares owned: 1,724,500 Trade date: August 29, September 2, 3 Trade total: $88,730 Trade: Sale of 208,000 shares at prices ranging between $0.41 and $0.43 per share Insider Sheldon Inwentash, officer Company: Integra Gold Corp.

(TSX:ICG) Shares owned: 16,498,500 Trade date: September 5 Trade total: $72,065 Trade: Acquisition of 248,500 shares at a price of $0.29 per share Insider Steven G. Dean, director Company: Atlantic Gold Corp.

(TSX:SVU) Shares owned: 1,853,000 Trade date: September 4, 5 Trade total: $60,380 Trade: Acquisition of 189,000 shares at prices ranging between $0.31 and $0.32 per share Insider Andrew Kaplan, director Company: Avino Silver & Gold Mines Ltd. (TSX:ASM) Shares owned: 17,500 Trade date: September 3, 4, 5 Trade total: $53,260 Trade: Sale of 26,500 shares at prices ranging between $1.99 and $2.04 per share Insider Jennifer Archibald, officer Company: Cardiome Pharma Corp. (TSX:COM) Shares owned: 11,275 Trade date: September 5, 8 Trade total: $52,829 Trade: Acquisition of 7,534 shares at prices ranging between $6.70 and $7.29 per share Insider Kevan Stuart Gorrie, officer Company: Pure Industrial Real Estate Trust (TSX:AAR) Shares owned: 152,694 Trade date: September 3 Trade total: $45,100 Trade: Acquisition of 10,000 shares at a price of $4.51 per share •

20

BUSINESSVANCOUVER September 16–22, 2014

askthe experts

QUESTION | How

When a company grows quickly, it needs to cultivate a loyal workforce

do I keep a tightly knit workforce as my business grows rapidly?

PATRICK PAYNE | CEO, QuickMobile

W

hile emphasis is usually put on initial team building, organizational problems can appear when a company’s growth begins to accelerate.

What was once a small, intimate core group of contributors grows into a larger group in which employees become somewhat disconnected from each other. Employees can quickly lose the entrepreneurial drive that initiated the spark.

Consequently, fast-growing companies should look at evolving its once intimate entrepreneurial team into a larger, yet still collaborative, organization. Below are several ideas to help with this evolution: Reimagine development resources. Consider moving to a project-team structure composed of small, crossfunctional permanent teams or modular units that can work autonomously yet maintain close communication with frequent updates and interaction with the other teams.

Establish a workable structure. Using the project-team structure mentioned above, teams should have seven to nine people, each with a specialty that they can contribute to each project. This creates more agility and means the same people will consistently deliver projects.

Manage the transition. Growth requires both structure and agility, yet suddenly transitioning from one process to another can be a recipe for chaos. The entire team must be committed to the change, then educated in the new methodology. The transition will take time. You should accept that all change involves potential challenges, so standardize procedures, create guidelines and anticipate problems. Try to empower everyone in the organization and create a sense of ownership.

EAMONN PERCY | President, Percy Group Capital & Business Advisers

D

uring a phase of rapid growth, don’t focus on keeping a tightly knit workforce, rather focus on keeping a tightly knit mission to dominate the sector, and then align the workforce to that mission.

To achieve this, do the following: 1. Focus on a core competency The mission to dominate a sector will ensure the company stays focused on market needs, pushing it to develop new offers and business models as well as clearly define the core competency necessary to deliver ongoing value. A tightly knit workforce can then be built and focused upon this core competency (e.g. technology, design functions, engineering expertise).

2. Make change the new normal High-growth companies are in a state of constant change. This state needs to be defined and communicated by the business leader as normal, healthy and less risky than the status quo. All sacred cows should be offered up for slaughter as necessary, so the cultural expectation becomes the willingness to change internally in order to dominate the space externally.

3. Outsource heavily, hire selectively Nothing will stall the high-growth company faster than the combination of negative cash flow and job-loss fear. Heavily outsource non-core functions, so you can move quickly, focus your limited resources on what you do best, while building and protecting your core workforce during periods of volatility. Hire only in functions that support your core competencies, and make the retention of your key employees a high priority.

SHAHRZAD RAFATI | Founder and CEO, BroadbandTV

A

high-performance team is the key to success in any company or cause. There are many books written on how to build high-performance teams but I’ve always felt that they are ultimately a product of a company’s culture.

Culture starts at the top. The management team has a responsibility to create opportunities for the workforce, they need to connect them and have them feed into the evolving environment. It begins on Day 1 during the induction process. You absolutely need to paint the picture from the outset, let them know their importance to the advancement of the business.

We’ve started a program where all new employees meet with their peers, and myself, shortly after joining.

They get to introduce themselves to other new joiners; I get to know them, and they hear the backstory of BBTV and our journey to date. They will help us through our next part of the journey and shape our future – communication has to be two-way.

You also need to keep them informed, let them know what is happening in the market, loop them into company developments and create cross-department groups to help with the development process. Give them the tools they need to grow and then encourage them to push the company to the next step.

At BBTV we operate a strict “talent first” environment, meaning that everyone needs to push forward and share their thoughts, regardless of role, level or background. It’s a combined effort.

Next week’s question – My company is rebranding. What are some of the challenges I should be aware of as it gets underway?

Comments curated by BIV news staff | Have a question for the Experts? Email: news@biv.com

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BUSINESSVANCOUVER September 16–22, 2014

profile | Jeff Booth

21

Building success BuildDirect CEO Jeff Booth helped shake the construction supply business to its foundations. And he vows he won’t stop until his company has grown to Google-sized proportions Jeff Booth, CEO of BuildDirect, in the company’s new offices on the 22nd floor at 401 West Georgia Street |

Mission

Build a simpler, friendlier and empowered home improvement industry

Assets

Will and perseverance. Keep standing up, overcoming and learning

Yield

Since 2010, revenue has grown more than 250% with 80% growth in 2013. In flooring alone, more than 40 million square feet delivered per year

By Nelson Bennett nbennett@biv.com

J

eff Booth is a compulsive doodler. It’s as though the 45-year-old CEO of BuildDirect needs to see his thoughts on a page while explaining them.

His doodles are the little pictures of a bigpicture thinker.

There is probably a diagram somewhere from 1999, when Booth and his business partner, Robert Banks, set out to disrupt the building materials supply business.

What they created has been called the Amazon of building supplies – an e-commerce site where builders can order flooring or roofing materials directly from manufacturers at a significant discount.

The company has grown so rapidly in the last two years – from a head count of 80 to 275 today – that it recently relocated from

its 14,000 square feet of office space at 717 Pender Street to 401 West Georgia Street, where it has 40,000 square feet on the 22nd and 19th floors and an option to take the 21st floor as well.

“We planned on being there for seven years, and we were there for two,” Booth said of the company’s previous location.

To finance the company’s growth, BuildDirect raised $16 million in venture capital from OMERS Ventures in 2012 and another $30 million in a Series B round last year led

by Mohr Davidow Ventures.

Although BuildDirect is focused largely on the U.S. market, Booth insists his company’s growth over the last two years is not just because of a recovering American housing market.

As he points out, the long-term average for new housing in the U.S. is 1.5 million units per year but still remains at about 900,000

Chung Chow

units per year.

“The business growth is coming from the platform we’re creating,” Booth said.

It’s a platform that has been 15 years in the making.

Born in Saskatchewan, Booth moved with his family to B.C.when he was a toddler but still has family connections on the Prairies.

He was raised in Richmond and spent six months in university before dropping out to become a real estate agent at the age of 19.

He did well in real estate and ended up coowning a real estate company.

With no background in building, he started his own home construction business in the mid-1990s.

He learned everything he knows about business from books. By his own estimate, he reads 50 business books a year. continued on page 22

22

profile

BUSINESSVANCOUVER September 16–22, 2014

Building SuCcess Continued from page 21

Banks, who has a background in finance, had known Booth for about a decade and had suggested they start a business together.

In the late 1990s, at the height of the Internet bubble, an idea for a new Internet-based company crystallized when the building materials Booth needed to finish a house didn’t arrive on time.

“I failed to deliver a house on time for a customer,” he said. “I was a general contractor and the flooring didn’t arrive on time.

And when they didn’t want to change the flooring to get in on time, we were stuck. We had to put them in a hotel and their furniture in storage.”

Booth realized that there were likely thousands of other buildi ng cont ractors t h roug hout North America who similarly were held hostage to a supply chain that was costly and sometimes unreliable.

Booth and Banks came up with the idea of an e-commerce site that cut out the middleman and would allow builders to order their building materials directly from a supplier, at a significantly lower cost.

BuildDirect launched at the beginning of the dot-com bust, which meant no one was investing in Internet companies anymore.

They raised all their startup

capital from friends and family.

“The first $8 million in the company all came from friends and family,” Booth said, adding that when all of a company’s money comes from friends and family, failing is not an option.

“They put money in because they care about you, and you keep going because you care about them,” Booth said.

Booth was also raising his own young family at the time. He and his wife, Kelly, have three children.

The company faced some significant hurdles at the beginning. The most daunting task was setting up a distribution network, which now includes eight distribution centres in the U.S. and two in Canada.

Whereas other e-commerce companies could rely on FedEx and UPS trucks and airplanes to deliver books or DVDs, BuildDirect had to establish its own delivery system that involved both railcars and semi-trucks and was able to deliver whole shipping containers of flooring and other building supplies from places such as Italy and Turkey to customers throughout the U.S. The other major hurdle was trust.

“The first buyer that bought had to buy 25,000 square feet of product from an Internet company located in Canada, and they had to wire the money three months in advance,” Booth said.

“Who would do that?

UPCOMING EVENTS

The first buyer that bought had to buy 25,000 square feet of product from an Internet company located in Canada, and they had to wire the money three months in advance. Who would do that? But the price was so low that some people took the risk

[] Jeff Booth Ceo, builddirect

“But the price was so low that some people took the risk. Then for three months they called us every day saying, ‘Are you still in business?’

“When that product arrived and it was way better than expectations, they said, ‘I told you so,’ to a lot of their friends, which exploded our business.”

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Customers weren’t the only ones who had to trust BuildDirect – so did suppliers. Essentially, the company was asking suppliers in other countries to ship hundreds of thousands of dollars worth of product to the U.S. and wait for BuildDirect to sell it.

But they didn’t have to wait long, because BuildDirect had invested in developing proprieta ry softwa re that a l lowed the company to predict with a high degree of accuracy what the trends in home construction were.

An algorithm that the company developed analyzed search en g i ne quer ies on b u i ld i n g products to find out what products homeowners and builders were searching for, when they were looking for it and in what regions.

This allowed BuildDirect to order the right amount of materials at the right time, in the right place, so there was never a lot of inventory sitting around unsold.

Suppliers loved it because they were able to move more product than ever before.

T he compa ny m a n a ge d to grow, even through the financial crisis of 2008 and subsequent recession.

“Because the business model was so effective, we were still growing through the building collapse,” Booth said. “Where it really hurt was the financial crisis. Nobody cou ld pay i n

advance.”

Howard Gwin, who helped broker a $16 million investment in BuildDirect by OMERS Ventures and now sits on the company’s board of directors, said the key to the company’s success is Booth’s ability to stay focused on the big picture.

“It’s not easy doing what they do, and the benefit of a market that’s not easy is – if and when you crack it – it becomes huge,” he said.

As Booth points out, flooring alone is worth $25 billion – just in the U.S. – and that’s just one submarket of building supplies.

W h ich is why Boot h t h i n ks BuildDirect has the potential to become a multibillion-dollar company.

“A billion is way too low,” he said. “I want to build a platformsized company. I want to build a Google-sized company right here.

“If you look at any single start of an ecosystem, it’s all from some crazy person who said, ‘I’m going to build it here, so help me God.’ People like Chip Wilson.

We should be celebrating people who have gone before us.”

While that may require going public at some point, Booth said an IPO is not on the horizon just yet.

“There’s no shortage of access to capital for a company that’s doing what we’re doing, so I don’t actually see why we would go public any time soon.” •

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BUSINESSVANCOUVER September 16–22, 2014

HOw

23

Green solvent company finds the right formula for success

I did it David Pasin | Entrepreneur

built his business with new ideas and talent for picking the right people

“The customer that approached us was a multinational company who manufactures cans for food and beverages … if you look inside a tomato can, you’ll notice it’s [painted] white.

[The type of paint used is] very hard to clean, it’s very hard to handle, it’s very odourous.

“They were looking at replacing MEK because it was too dangerous in terms of flashpoint, because of a variety of toxicity issues.

“I did [a lot of] research and quickly realized there weren’t really any alternatives that were effective. So I spent about a year and a half developing a product and then I hired a really brilliant chemist to come on board to help finish the product. We spent about a year working on it.

“What we found was [our product, TergoSol] had greater stability, it was compatible with a bunch of different things,

Business in Vancouver’s “How I did it” feature asks business leaders to explain in their own words how they achieved a business goal in the face of significant entrepreneurial challenges. In this week’s issue, David Pasin, president of TBF Environmental, talks about how his company has created several innovative products that are safer and more environmentally friendly than conventional solvents.

T

“

here’s a huge gap in the market for green solvents, particularly for ones that work.

“We looked at some of the offerings out there, and they all have drawbacks: they either evaporate too fast or too slow … or they dry too fast and leave a residue.

“We had a customer approach us a while ago and ask us if we had a replacement [for] methyl ethyl ketone (MEK).

it was safer, it was far lower odour. [Workers] weren’t getting sick on the line.

“I started pitching [TergoSol] to different paint companies and, lo and behold, one of the biggest paint companies in the world was in desperate need because they had to comply with [stricter environmental] regulations in one jurisdiction in Texas.

“I like coming up with new ideas, and I have the good fortune of being able to pick the right people to work with me to help develop those types of things.

“In this case with TBF, I contacted the University of British Columbia’s and Simon Fraser University’s chemistry departments. They have a co-op program and I looked at probably 30 different applications and I knew what I was looking for. When you’re formulating

something you have to be somewhat artistic as well as scientific.

“The [master’s student] I chose played in a band, wrote his own music, spoke several languages, so he fit the bill perfectly. He thinks very outside the box. We had to approach this not from a standard chemical point of view: we looked at what everybody else has done and what worked well and didn’t work well.

“We developed a computer model and put in all the parameters of all the solvents we were looking and the solvents that had failed or weren’t working very well. You could manipulate them to combine whatever type of outcome you were looking at and see if they would work.

We came up with about 25 possible solutions and we whittled it down to four, then three, then two, then one.”•

Q&A Q : Have you had any challenges manufacturing the product?

A : Yes. Supply was one: some of the raw materials are not made in North America, so there were [issues around] security of supply, quality of supply. We’ve formed some very good relationships with suppliers overseas, and our raw materials are now made for us to our specifications.

Q : What markets are you trying to access next?

A : We have two distributors in the United States, one west of the Rocky Mountains and one on the east side [of the country] and we’re very specific about where the products can be used. We try to educate the salespeople and where to market it and how to market it.

Pasin sells Gibson Paints

2014

Pasin starts InTech Environmental

2010

2004

David Pasin buys Gibson Paints and creates several innovative paint products

2004

1986

K Cleaning up in the chemical sector TBF is awarded a clean air solvent certification from the South Coast Air Management District of California. It’s the first time in 20 years the jurisdiction has certified a new solvent.

Pasin spins TBF Environmental out of InTech

Next week’s How I Did It – Harry Chemko, founder and CEO, Elastic Path Software

How did you do it? Do you or does someone you know have a story to share? Contact Nelson Bennett at nbennett@biv.com

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24

BUSINESSVANCOUVER

send your free listing to fortherecord@biv.com

September 16–22, 2014

for the record People on the Move Email your For the Record information to: fortherecord@biv.com.

Please include a high-resolution, colour headshot where possible.

Development/ Construction

Jeff Alexander Jeff Alexander, president and CEO, Vancouver Symphony Society, has been appointed president of the Chicago Symphony Orchestra Association, effective January 12, 2015. Alexander has served as president and CEO for the Vancouver Symphony Orchestra (VSO) since September 2000.

Prior to joining the VSO, Alexander spent 16 years with the Cincinnati Symphony Orchestra, including 12 as general manager.

Legal

Ryan Amies Daniel Wilson Sophia Zhu Ryan Amies, Daniel Wilson and Sophia Zhu have joined ZGF Cotter Architects as intern architects.

Finance

Alan Wallace Alan Wallace has joined PwC’s Vancouver office as a senior adviser in its corporate finance practice.

Wallace specializes in divestitures, acquisitions, equity financing and bank, mezzanine and project debt financing. Wallace has more than 27 years of experience and has worked with both public and private companies across a wide range of industries.

Hospitality/Tourism/ Convention Paul Chutter Paul Chutter has been appointed vicepresident, sales operations/corporate development at WhiteWater West Industries Ltd. Chutter began his career in corporate finance as a mergers and acquisitions adviser for the Bank of Nova Scotia, and for the past five years has served as director of institutional equity sales for UBS Investment Bank in London, England, and Toronto. Chutter is the son of WhiteWater West’s founder and CEO, Geoff Chutter.

Daniel Byma Daniel Byma has been appointed an associate at Fasken Martineau DuMoulin LLP, where he completed his articles earlier this year. Byma has joined the firm’s litigation and dispute resolution group.

Non-Profit Marilyn Madden Marilyn Madden has joined SOS Children’s Village BC’s development team as director of corporate and major donor stewardship. Madden has more than 22 years of sales experience and account management, specifically within the credit card and finance industry; she was previously a director in merchant acquisition at American Express and has been the recipient of National Sales Awards – President’s Club Award and Sales Excellence Award – in 1996, 1997, 1999, 2000, 2001 and 2003.

Resources John Bowles, D. Bruce McLeod, Roman Friedrich III, Stephen P. Quin, Robert J. Quinn, Daniel Tellechea and Ron Vankoughnett have resigned from the board of directors of Mercator Minerals Ltd. D. Bruce McLeod, Michael Broch, Mark Distler and Marc Leblanc, officers of the company, have also resigned.

Peter A. Ball has been appointed senior vice-president at Columbus Gold Corp. Ball has close to 25

17th Year!

years of experience and leadership as a mining professional and has held senior management roles with international precious metals mining companies in corporate finance, mine engineering, business development, corporate communications, public relations and marketing throughout North and South America, Asia and Europe.

Sales/Marketing David Linde David Linde has joined Image Group Inc. as an account executive.

Linde is a certified advertising specialist and was previously with Probizz Advertising Specialities Inc. for 14 years.

Transportation Michael Friend Michael Friend has joined the Canadian executive team of Flight Centre as vice-president of product and wholesale, responsible for trade partner relationships, manufactured product, GOGO Worldwide Vacations (Flight Centre’s wholesale business), contracting and distribution centre.

Friend began his career as a travel consultant in Melbourne more than 18 years ago, working his way up the ranks to president of Western Australia South Australia Northern Territory and most recentlyserved as president of Flight Centre New Zealand.

Companies on the move Name change Mantra Capital Inc. has changed its name to SolidusGold Inc. and is now trading on the TSX Venture Exchange under the new symbol SDC.

Hats Off Business in Vancouver welcomes submissions from local small

A&W raised $1.45 million during its sixth annual Cruisin’ to End MS event to benefit the MS Society of Canada. Yves Savoie, president and CEO, Multiple Sclerosis Society of Canada (left), and Paul Hollands, president and CEO, A&W Food Services of Canada Inc. (right), were joined by the Great A&W Root Bear in Kitchener, Ontario businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. High-resolution images are also welcome.

Social Venture Partners Vancouver (SVP) has made a donation of $80,400, to be dispersed over two

years, to the Adoptive Families Association of BC for development of its online adoption education program. The funds will support the delivery of relevant adoption education and training to families and professionals across Canada.

SVP Vancouver also volunteered valuable business mentorship

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for the record

BUSINESSVANCOUVER September 16–22, 2014

25

The Board of Directors and staff of Royal Columbian Hospital Foundation are pleased to introduce Jeff Norris as President and CEO. Jeff’s career in non-profit organizations spans two decades and includes experience in health care and post-secondary sectors. He has also been recognized for his community work and business accomplishments.

“I’m excited to join the team at Royal Columbian Hospital Foundation as it prepares for one of the largest hospital redevelopments in Canada.”

From left to right: David Gunasekera, partner, McCullough O’Connor Irwin LLP, Alex O’Connor, Amy O’Connor, Meaghan O’Connor and Erik Dierks, vice-president, development, BC Cancer Foundation expertise to help develop the program.

A&W Food Services of Canada Inc. and its customers donated $1.45 million to the MS Society of Canada through its Cruisin’ to End MS program. A&W donated $1 from every Teen Burger sold across Canada. Additional funds were collected via donation mugs, through the sales of paper cutouts and other activities like 50/50 draws and raffles. The company also donated $1 for every RSVP on Facebook and every tweet using the hashtag #CruisinToEndMS. McCullough O’Connor Irwin LLP and the O’Connor family donated $25,774.05 to the BC Cancer Foundation. Funds were raised through the fifth annual Victor J. O’Connor

Royal Columbian Hospital is a Fraser Health referral centre that provides the highest level of care to seriously ill and injured patients from across the province, including trauma, cardiac services, neurosciences, high risk maternity and neonatal intensive care.

Charity Golf Tournament held in May at the UBC Golf Course. The funds will benefit the BC Cancer Foundation and its work to support research on mesothelioma, a rare and aggressive form of lung cancer.

Scotiabank donated $75,000 to help build the recently opened Ronald McDonald House BC. In recognition of the company’s gift, one of the four family lounges in the house has been permanently named in its honour.

Canadian Direct Insurance donated $35,000 to the BC Sports Hall of Fame. The funds will support programs that encourage and inspire youth to set and achieve personal goals through the values of sport. •

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26

BUSINESSVANCOUVER September 16–22, 2014

for the record

trouble Discipline British Columbia Securities Commission Daveed Zarr made false statements and illegally traded securities, according to a British Columbia Securities Commission (BCSC) panel, the BCSC announced September 2.

The panel determined that Zarr, also known as Asi Lalky, misrepresented registration and prospectus requirements when he offered to sell shares in his company, Zarr Energy Corp.

The offers to sell Zarr shares were on a website that he created as well as Criagslist and other places online.

Zarr has never been registered in any capacity in B.C., and Zarr Energy has never filed a prospectus.

In December 2011, Zarr posted an online classified advertisement promoting the investment in the financial services section of Vancouver’s Craigslist website.

Zarr said that investors would earn a 50% annual return if they agreed to open a foreign exchange trading account containing $250,000 and give Zarr trading authority over the account.

A BCSC investigator then sent an email to Zarr, posing as an investor.

Zarr said that he was a “professional currency trader” and he reiterated that investors would earn a 50% annual return, according to the BCSC. The BCSC panel found that both of these statements were false or misleading.

“Zarr admitted in his interview that he is not, and never has been, a professional currency trader,” the BCSC panel wrote. “He also acknowledged that he is no good at it.”

BUYER’S ALERT Companies listed below, which are not accredited by the Better Business Bureau, have failed to respond, as of September 5, to Better Business Bureau of Mainland BC’s efforts to mediate complaints from August 31 to September 6. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB accredited businesses must respond to customer complaints that are brought to their attention. The companies listed are not members of this Better Business Bureau. Source: BBB. Abbey Cedar Products Ltd., Abbotsford Art Beauty Hair Specialist Center, Richmond Auto Villa, Burnaby BBQTek Enterprises Inc., Burnaby Credit Processing Canada, Burnaby Electronic Arts Canada, Burnaby Intuition Property Services Inc., Surrey IT Solutions, Vancouver Kia South Vancouver, Vancouver MaxFrag Network, Vancouver Metropolitan Movers, Vancouver Mining Canada, Vancouver

N V Electrical/Heating & Appliance Repairs, Burnaby Nor Pac Marketing, Coquitlam Optimum Performance Products, Port Coquitlam Organic Spa Solutions, Vancouver Oxygenergy Electronics, Richmond Pacific West Van Lines, Richmond School of Mix, Vancouver Starbrite Home Cleaning Services, Surrey Sun Sun Auto Sales, Vancouver Sussex Insurance, Chilliwack Tastygo Online Inc., Vancouver The Cedar Guy, Abbotsford The Herschel Supply Co., Vancouver Unique and Trendy, Surrey VisionQuest Recovery Society, Delta Wonga.ca, Vancouver ZoomBucks, Vancouver The following companies have responded to the BBB subsequent to being published: Advanced Parking Systems Ltd., Vancouver Canada Events and Adventures, Vancouver Cap-it Kamloops, Kamloops JCG Jansen Claims Group, Coquitlam Waste Management of Canada Corp., Coquitlam

WHO’S GETTING SUED These corporate writs were filed with the BC Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court.

Defendant Salmon River Resources ltd.

2080 – 777 Hornby St., Vancouver Plaintiff Rigdon Ltd. 1700 – 666 Burrard St., Vancouver Claim $2,647,016 US for debt.

Defendant Finavera Wind Energy Inc. 2080 – 777 Hornby St., Vancouver Plaintiff Innergex Renewable Energy Inc. 1300 – 777 Dunsmuir St., Vancouver Claim $1,000,000 for debt.

Defendants Q4 Group Holdings (Richards Street) Ltd. and Agip Holdings Ltd. and Alekos Alex Akaios Tsakumis and Patrick Corsi 1600 – 925 W. Georgia St., Vancouver, and 6983 Montgomery St., Vancouver, and 4180 St. Pauls Ave., North Vancouver Plaintiff iFund Diversified Lending Corp.

1800 – 401 W. Georgia St., Vancouver Claim $415,912 for debt.

Defendant Wolfgang Rauball 8997 Trudys Landing, Whistler Plaintiff Spencer Clarke LLC 410 Park Ave., 15th floor, New York, N.Y.

Claim US$325,000 for a New York Supreme Court judgment.

Defendants 919582 Alberta Ltd. dba Ric’s Grill and Ric’s Grill Inc. and Sandeep Gupta 3700 – 205 5th Ave. S.W., Calgary, and 1037A Lawson Ave., Kelowna Plaintiff Henry Whyte 900 – 900 Howe St., Vancouver Claim $251,760 for deferred wages, expenses and a loan agreement.

Defendants Sung Sub Oh dba O.K. Investment Corp.

20193 68A Ave., Langley Plaintiff Byung Kwon Jung dba Rothschild Fuel Services Ltd. 2010 – 1055 W. Georgia St., Vancouver, and 1000 – 564 Beatty St., Vancouver Claim $168,000 for breach of contract and breach of fiduciary duty after defendants failed to pay plaintiff’s share of profits from a leased gas station operation.

Defendant Olivit Construction Ltd. 22311 119th Ave., Maple Ridge Plaintiff Craftsman Glass Ltd. 700 – 555 Burrard St., Vancouver Claim $120,305 for window, mirror and door supply and installation work.

Defendants Fraser Electric Co. Ltd. and PCL Constructors Westcoast Inc. and The University of British Columbia and The Board of Education of School District No. 39 (Vancouver) 5 – 15243 91st Ave., Surrey, and 900 – 808 Nelson St., Vancouver, and 1580 W. Broadway, Vancouver Plaintiff 4th Utility Inc. 1320 – 355 Burrard St., Vancouver Claim $110,431 for electrical and communication component supply and installation; damages for breach of contract; a builder’s lien.

Defendants Sandhar Drywall Ltd. and Bikramjit Singh Sandhar 108 – 13049 76th Ave., Surrey, and 14573 83A Ave., Surrey Plaintiff Royal Bank of Canada 2nd floor, Tower 2, 6880 Financial Dr., Transit #06114, Mississauga, Ont. Claim $110,398 for debt.

Defendant Dorset College Inc. 200 – 1885 W. Broadway, Vancouver Plaintiff Buckley Dodds Parker LLP 1140 – 1185 W. Georgia St., Vancouver Claim $80,844 for accounting services.

for the record Lawsuit of the week Ousted Securiguard COO claims company wrongfully dismissed him after less than a year Darryl Davis is suing corporate security firm Securiguard Services Ltd. claiming he was wrongfully dismissed as chief operating officer after less than a year on the job.

Davis filed a notice of civil claim in BC Supreme Court on August 28.

He claims he started at Securiguard as COO on November 1, 2013, at $150,000 a year plus other benefits, including participation in a profitsharing plan, estimated at the time to be around $20,000 to $30,000 a year. In fiscal 2013-2014, Davis’ share was to be more than $50,000, according to the claim.

But on June 30, Davis claims he was wrongfully dismissed without just cause and without reasonable notice or pay in lieu.

“The wrongful dismissal constituted an arbitrary and willful breach of the plaintiff’s contract of employment with the defendant,” the claim states.

Davis says he didn’t receive his bonus and has incurred expenses while trying to mitigate the damage, but he hasn’t been able to find a comparable job since being fired.

He seeks unspecified general and special damages for breach of contract and wrongful dismissal. The allegations have not been tested in court and Securiguard had not filed a response by press time.

Defendant Liquor Stores GP Inc. as general partner for and on behalf of Liquor Stores LP 300 – 10508 82nd Ave., Edmonton Plaintiff Staburn Elk Road Developments Ltd. 900 – 885 W. Georgia St., Vancouver Claim $77,259 for breach of lease.

Defendants Harold Resnick and Resnick Automotive Specialties Ltd. 4517 Garry St., Delta, and 120 – 1655 Broadway St., Port Coquitlam Plaintiff Matthew Francis Address unavailable.

Claim $47,002 for breach of contract related to defendants’ failure to perform rebuilding work on plaintiff’s

1988 Chevrolet Monte Carlo SS. Defendants Panther Constructors Ltd. and Brian Roche and Power Wall Systems Ltd. and BTY Consultancy Group Inc. 110 – 510 Burrard St., Vancouver, and 400 – 343 Railway St., Vancouver, and 200 222nd St., Langley, and 2800 Burrard St., Vancouver Plaintiffs 245 East Georgia Development LP and Ango Developments Inc. fka GMC Development 245 East Georgia Inc. 800 – 885 W. Georgia St., Vancouver Claim Judgment for losses caused by misrepresentation and negligence after defendants misrepresented their construction management experience and plaintiffs lost profit when the project went over budget.

Defendants Terry Kin Keong Ali and Queensgate Development Inc. and Paragon Development Inc. 9671 Haddon Court, Richmond, and 215 – 8181 Cook Rd., Richmond Plaintiff Julie Chan 969 W. 38th Ave., Vancouver Claim Declaratory relief that plaintiff holds a beneficial interest in property.

Defendant Best Buy Canada Ltd. 1200 Waterfront Centre, 200 Burrard St., Box 48600, Vancouver

27

BUSINESSVANCOUVER September 16–22, 2014

Plaintiff Panayotis (Peter) Kassaris 2500 – 700 W. Georgia St., Vancouver Claim Damages for wrongful dismissal and breach of contract after plaintiff was terminated as a director of procurement and vendor management.

Defendant Securiguard Services 619 – 610 Granville St., Vancouver Plaintiff Darryl Davis 700 – 401 W. Georgia St., Vancouver

Claim Damages for wrongful dismissal after plaintiff was fired as chief operating officer without cause or notice.

Defendants Jasbinder Sanghera and Jun Yan and Fasken Martineau Dumoulin LLP and Roger Kuypers and Narinder Bandan and Alistair McLennan 2900 – 550 Burrard St., Vancouver Plaintiff Signalchem Lifesciences Corp.

Address unavailable.

Claim Leave to proceed with a derivative action against defendants for breach of fiduciary duty. •

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28

BUSINESSVANCOUVER September 16–22, 2014

Editorial

President/Publisher | Paul Harris, 604-608-5156 editor-in-chief | Fiona Anderson, 604-608-5183 Managing editor | Timothy Renshaw, 604-608-5131 Deputy Managing editor | Mark Falkenberg, 604-608-5174 Business in Vancouver is owned by Glacier Media Inc., 102 East Fourth Avenue, Vancouver, B.C. V5T 1G2

The cheques might not be in the mail

C

anada Post opened a new 700,000-squarefoot high-speed mail processing facility recently, but it will face an old business problem: survival in a world where traditional delivery of communications is rapidly disappearing.

The $200 million Sea Island plant, which replaces the federal Crown corporation’s Richmond and West Georgia Street operations, is part of

Canada Post delivered 1.2 billion fewer letters in 2013 than it did in 2006 a business streamlining strategy as private-sector competition heats up and letter delivery spirals down.

There is some light on the horizon for the mail delivery behemoth in the new digital era. E-commerce is increasing demand for parcel delivery, and the 66,000-employee Canada Post Group of Companies (CPGC) recently recorded a second-quarter profit from operations of $96 million compared with a loss of $72 million in

last laugh

the same period a year ago.

But, as with national mail services the world over, Canada Post is far from out of the woods. It delivered 1.2 billion fewer letters in 2013 than it did in 2006, and CPGC is projecting a $274 million loss in 2014.

The $62 million second-quarter profit generated by Canada Post, whose cost structure labours under a multibillion-dollar public-sector pension shortfall, can be attributed in large part to stamp price increases and a spike in election pamphlet mail-outs from provincial elections in Ontario and Quebec.

Its business plan to eliminate home mail delivery and cut approximately 8,000 workers over the next five years will address some cost issues, but when it comes to generating new revenue streams, Canada Post is in tough against far more agile privatesector competitors like FedEx, Google and Amazon.com.

In its favour, Canada Post has coastto-coast infrastructure, more than 6,300 retail post offices and longstanding customer trust across the country.

But it remains to be seen whether new high-speed parcel and mail processing plants like the one opened on September 4 will add enough horsepower to its existing operations to ensure Canada Post’s long-term survival in its current form.

Good data is key to the integrity of municipal political promises

At Large Peter Ladner

A

big theme in the upcoming civic election in Vancouver is going to be community consultation.

Everybody is promising to listen more. The NPA wants you to believe that we can all have “the Vancouver I want,” while Vision Vancouver has to explain why work crews were revving up their trucks to start the Hornby bike lane within hours of a so-called “public hearing.”

Every politician has to draw the line between endless listening and leading. In Vancouver, this election will be about where to draw that line – and how to make every voter think it’s being drawn where he or

she wants it. One big problem with listening is that a lot of what you hear is a crock. Or, to be more charitable, it’s fear of change, fanned by the worst imaginings of uninformed uncertainty, often spiced with political or personal agendas.

Not all consultation is equal.

Remember the angry debate over approving the Canada Line? Burnaby Mayor Derek Corrigan voted against it, telling the Vancouver Sun that 100,000 riders a day is “unrealistic.”

Ditto then-Vancouver city councillor David Cadman: “There is dubious assurance that the ridership will arrive,” he told the Georgia Straight.

A year after it opened, three years ahead of predictions, it hit 100,000 riders, and now it’s up to 122,000.

Remember developer Rob Macdonald’s white-hot op-ed predicting Armageddon due to the separated Dunsmuir bike lane? He said there would be “a substantial drop in sales

what’s your opinion?

revenue, in some cases upwards of 30%, in most of the businesses directly impacted; job losses; business closures; shopkeepers’ life savings wiped out; falling property values.”

I’m not aware of any of this happening. There was an adjustment period for some businesses, and traffic does back up on the Dunsmuir viaduct, but data from other cities shows increases in business along bike lanes. Stores next to protected bike lanes in Portland have seen a 49% increase in sales.

In New York, stores petition the city to put bike lanes on their street. The Downtown Vancouver Business Improvement Association promotes bike lanes and bike events because they bring new customers downtown. White Spot is planning its newest, biggest restaurant right on the Dunsmuir bike lane.

Similar fears were raised over the recent Point Grey Road closure to through traffic.

Nightmare traffic jams, lack of

bike use, pollution, noise and harm to businesses were all promised during consultation meetings. For sure, the optics of some rich people’s waterfront property values going up is disconcerting (except Trevor Linden’s, of course), but the reality is that they now pay higher property taxes and so others pay less. None of the “nightmares” has materialized, while weekday pedestrian and cycle traffic on Point Grey Road has doubled and tripled, respectively. On weekends, walking traffic has tripled and cycling is five times what it used to be.

The starkest reminder that some public comment comes with a “best-before” date is the vitriolic opposition to a condo development approved at 16th and Granville in 2008. Almost every person appearing before council opposed it as the beginning of the end of Shaughnessy as we know it. A few years later, the leader of the opposition buttonholed me in a grocery store lineup and admitted that

he had bought a unit in the complex.

That said, genuine consultation and sincere listening are key to building great neighbourhoods. The current city council’s betrayal of a costly, committed GrandviewWoodlands plan, with the last-minute WTF injection of a dozen-plus highrises at Broadway and Commercial by the director of planning, was an abomination of consultation.

The same could be said of our inability to hear and deal with the tragic consequences of cutand-cover on businesses along the Cambie corridor when I was on council.

On November 15 Vancouver voters get to pick the council that will reverse the projects they don’t want and choose new ones they do want. Just make sure the promises aren’t based on false fears and yesterday’s data. • Peter Ladner (pladner@biv.com) is a co-founder of Business in Vancouver.

| BIV welcomes readers’ opinions. All letters, including those sent by email, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Email: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

BUSINESSVANCOUVER September 16–22, 2014

29

Opinion UNBC: a northern economic success story 25 years in the making

Northern Initiative Joel McKay

T

he post-secondary school year began in the north last week with a kickoff event for the 25th anniversary of University of Northern British Columbia (UNBC) – an institution that’s consistently ranked among Canada’s top three small universities.

I think it’s also the most beautiful campus in the province.

According to Ken Coates, the Canada research chairman in regional innovation at the University of Saskatchewan, the UNBC campus is also “the only building truly designed for a northern setting in the whole country.”

An example of true northern architecture.

He should know.

In the ’90s, just as the university started awarding degrees, Coates was the academic vicepresident at UNBC. In 1992, Coates and fellow researcher and frequent co-author William Morrison published The Forgotten North, a highly readable 130-page summary of the history of Canada’s provincial norths, stretching from Labrador to Prince Rupert.

Coates has since become a leading national voice in northern development and circumpolar affairs.

Ahead of UNBC’s 25th birthday, I wanted to talk to him about The Forgotten North.

What had changed in the two decades since the book was published?

The University of Northern British Columbia is the result of a strong vision and long-term commitment to the region, says researcher Ken Coates

I tracked Coates down via email and Skype somewhere between stints in Europe, Japan and Canada. But the subarctic was already at the top of his mind – turns out, he’s working on a major research project called the North Below the North.

I asked him what has changed for provincial norths since he published A Forgotten North.

“Little has changed politically,” Coates answered. “The provincial north is now the centre of the Canadian economy with resource development and emerging aboriginal economies across the region. The boom is remarkable. The lack of national attention stunning.”

He’s not wrong – remove northern hydroelectricity, oil and gas, mining and forestry from the economies of Labrador and the northern halves of Quebec, Ontario, Manitoba, Saskatchewan, Alberta and B.C., and what’s left to run the national economy?

Not enough.

“There’s a lot of people in Vancouver that make a lot of money

off mining in northern British Columbia, and yet it never gets any attention,” he said.

Why is that?

Two reasons, he said. The first is structural.

“The people that own the mines tend to live in the urban centres. You don’t have a lot of mine owners or forestry executives living in Prince George.

They tend to live in Vancouver.”

OK, what’s the second?

“People come into the north with the expectation they’re there to make a killing, not a living,” Coates said. “The best example of this right now is Fort McMurray – you have tens of thousands of people flying in and out. If the people who are working there and making money from it aren’t committed to the area, you’ve got a real problem.”

In addition to outflows of cash, companies and workers, the north’s economy has yet to diversify beyond natural resources. (The hi-tech “work anywhere, live anywhere” dream never materialized for the subarctic.)

And continuing land claims issues and environmental disasters are making it more difficult to build mines and pipelines, which, because of technology and automation, simply don’t need as many workers as they once did.

Add to that a declining national birth rate, aboriginal migration, immigrants who tend to stay in metropolitan areas and rivalries among northern communities, and the long-term future for provincial norths looks smaller, Coates said.

Still, some areas of the world have managed to create new and sustainable economic opportunities in the face of these challenges.

“The story of UNBC is an absolutely classic example of that,” said Coates.

In the ’80s, southern resistance to building a university in the northern half of the province was astonishing, he said.

Yet, in 1988, 16,000 northerners donated $5 each and signed a petition calling on the government to create a university for

the north.

A quarter of a century later, 11,000 students have graduated from UNBC. Nearly 70% of the 4,000 students who attend classes at the main campus in Prince George, and take courses at regional campuses in Terrace, Fort St. John and Quesnel, are from the north.

UNBC has created thousands of jobs since it began operations and has produced research and won awards that have placed it on an academic podium next to Harvard.

And the use of exposed timbers in the main campus has spawned an architectural style – a northern architecture – now being replicated throughout Prince George in the city’s new RCMP building and the Wood Innovation and Design Centre, among other buildings.

“UNBC’s brilliance isn’t the fact that there’s a University of Northern British Columbia; it’s the fact that the community insisted on having a University of Northern British Columbia,” Coates said.

Last week, the university announced a campaign to plant 16,000 trees throughout the region next spring to recognize the school’s 16,000 founders.

So, 25 years later, what can the north learn from its university to help it create an economy that will endure?

“The future is going to go to communities that do two things,” said Coates. “They have to have a very powerful vision of the kind of future they want, and everybody has to be on board.”

In other words, it’s up to us. • Joel McKay (joel@ northerndevelopment.bc.ca) is director, communications, at Northern Development Initiative Trust.

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We reserve the right to edit for brevity and clarity. Please go to www.biv.com/ events/calendar to post your listing.

Conferences 36th Angel Forum for Startups & Angel Investors

September 30 8 AM For highgrowth startups: apply by September 30 and be approved to present to more than 60 angel investors. Angel investors will hear, meet and see demos by 18 pre-selected emerging growth companies in one day. The Angel Forum is the oldest and largest angel group in Canada; visit bit.ly/ angelforum for more information.

Must pre-register. 505 West Hastings Street. Vancouver. Bob ChaworthMusters. bob@angelforum.org.

12th Annual UBC Net Impact Conference

October 24 8:30 AM The conference will focus on social investment – sometimes referred to as impact investing – and social enterprise. The conference will aim to deepen our understanding of socially responsible financing by addressing questions such as: How do we balance financial and social impact? What are the risks associated with impact investing?

What happens post-investment?

The goal of the conference is to bring together experts from various fields including technology and entrepreneurship, housing, food and agriculture and natural resources, in an effort to better understand how the business world perceives and employs principles of social finance.

We aim to create an exciting learning environment for all by providing a broad representation of socially responsible ventures. Vancouver Convention Centre. 1055 Canada Place. Vancouver. ubcnetimpact@ gmail.com.

Learn about the tax advantages of being a registered corporation

Courses, Workshops, Seminars How to Get Your Business Into the Media

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Monday, September 22 Moving From a Proprietorship to Incorporation – Tax Concerns

September 19 10:30 AM Whether it’s print, online, TV or radio, every business wants to get in the media’s limelight. By aligning your knowledge, expertise or opinion with what an editor or producer might need; and then knowing how to send a good pitch, you’ll be able to get your name and company into the media.

This seminar focuses on the basic information of how to communicate with journalists and editors, along with examples of what makes a good pitch. As an editor with 15 years of experience, Baila Lazarus has read and heard thousands of story pitches. Lazarus can tell you what grabs an editor’s or producer’s attention – and it’s not what you might think. Small Business BC. Suite 54. 601 West Cordova St. Vancouver.

Moving From a Proprietorship to Incorporation – Tax Concerns September 22 9 AM At what financial point in your business is it a good idea to incorporate? How can a registered corporation help separate you from your business or partners while optimizing tax benefits? Find out this and more at this seminar.

Discuss the advantages of moving your proprietorship or partnership to a corporation, learn about the tax advantages of being a registered corporation and understand the benefits of using a holding company, deferred income, hiring family members, medical trusts and how to utilize the small business capital gains exemption. Presented by Gabrielle Loren of Loren, Nancke & Co. Small Business BC. Suite 54. 601 West Cordova Street. Vancouver.

Proposal Development Workshop

September 24 8 AM This course provides an overview of the key factors that separate proposals that win from those that do not.

Thursday–Friday, September 25–26 Navigational Conversations

Learn how to motivate, engage and give feedback to others at this two-day program held at the Morris J. Wosk Centre for Dialogue

This course addresses proposals in response to a formal Request for Proposals (RFP), Request for Qualifications (RFQ), Request for Information (RFI) from vendors, proposals prepared to address a potential business opportunity as well as less formal estimates and quotes. This course is suitable for anyone involved in the proposal development process, including individuals that make decisions on whether or not to respond to a proposal opportunity. Accent Inn. 3777 Henning Drive. Burnaby. Sabine Just. 604-298-7795. sabine@icba.ca.

Make Balance Happen: Work-Life Conflict for Professionals in Finance

September 25 8 AM More Canadians are at risk of high work-life conflict. Causes can be attributed to widely documented demographic and structural changes in both the work and family domains. This session will increase your understanding of the relationship between the various demands that employees face and the prevalent forms of work-life conflict. Participants will learn about constructive tools and strategies for making positive change and managing personal development.

BCIT Vancouver Campus. 555 Seymour. Vancouver. Laurie Daschuk.

604-850-5095. ltdaschuk@ stopthepresses.ca.

Navigational Conversations

September 25–26 8:30 AM Learn how to motivate, engage and give feedback to others and create empowered conversations. Shift from being task-oriented to leadershiporiented so you can build capacity within your organization and focus on what’s most important. Start building the best team today so you can manage your time and focus on strategy. Day one focuses on foundational principles and skills.

Day two explores avanced skills and more challenging coaching situations.

For more information go to www. corporatesymphony.com/services/ navigational-conversation. Morris J. Wosk Centre for Dialogue. 580 West Hastings Street. Vancouver.

Victoria Brown. 604-764-7218. victoriabrown2011@gmail.com.

Expert Panel – Why Is Product Management So Important?

September 29 6:30 AM A moderated panel of product management executives from Lower Mainland companies discussing the importance of product management.

Moderated by John Hawking. Panelists: Simon Backer, Lindsay Ryerson and Neil Parker. HootSuite HQ1. 5 East 8th Avenue. Vancouver. John Schaub. johnjschaub@gmail.com.

Sales Success

October 2 9 AM Create explosive sales growth with techniques you’ll learn from the dynamite combination of Jeffrey Gitomer and Dale Carnegie Training. This never-before-seen combination will give you the attitude, confidence and systems needed to become the award-winner you know you can be. You will learn to build a positive sales attitude, gain the customers’ perspective, build a tool kit that will attract customers, deliver powerful sales presentations, overcome buyer objections with confidence and much more.

Metrotower II. 4710 Kingsway. Suite 428. Burnaby. Paul Sinkevich. 604-2995115. paul.sinkevich@dalecarnegie. com.

Trade shows SOHO SME Business Expo

October 30 8 AM Join thousands of business owners, entrepreneurs and marketing executives who will inspire, motivate and drive your business success. There will be keynote speakers, panel sessions, interactive exhibits and displays, a free coach’s corner, business skills competitions, live demos, Startup Alley great networking, prizes and more. Don’t miss the featured keynote, Meredith Powell, co-founder of The Next Big Thing foundation, and other amazing game-changing entrepreneurs.

Register now or become an exhibitor at www.vancouversme.soho.ca. Enter promo code “BIV” and get free all-day access, plus save $20 to attend the SOHO SME after-party. Sheraton Wall Centre. North Tower. Pavilion Ballroom.

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BUSINESSVANCOUVER September 16–22, 2014

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The supportneed stafftoatcomplete econveyance The support are staff all past at econveyance conveyancing are all past conveyancing a file is available in the platform. professionals. They understand professionals. the ins They andunderstand outs of the the industry ins and outs of the industry The support staff at econveyance are all past conveyancing and their depth of knowledge and their is depth unrivaled of knowledge in the business. is unrivaled in the business.

Provides “very helpful” support

professionals. They understand the ins and outs of the industry and their depth of knowledge is unrivaled in the business.

Provides “very helpful” support

The support staff at econveyance are all past conveyancing professionals. They understand the ins and outs of the industry and their depth of knowledge is unrivaled in the business.

Simplifies your Simplifies transition your transition Simplifies your transition

Our intuitiveOur interface Our structured intuitive like interface a typical structured conveyance like a typical conveyance intuitive is interface is structured like aistypical conveyance transaction, transaction, so there isso transaction, no need toneed change so there your is no workflow need to when change there is no to change your workflow when your workflow when to econveyance. switching toswitching econveyance. switching to econveyance.

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Our intuitive interface is structured like a typical conveyance transaction, so there is no need to change your workflow when switching to econveyance.

Reduces your monthly costs

Reduces your Reduces monthly your costs monthly costs There are no licensing fees or monthly bills. You pay per notoruntil you start generating documents onbills. You pay per There are notransaction licensingand fees There are monthly no licensing bills.

You fees pay or per monthly that transaction. transaction and not until transaction you start generating and not until documents you start generating on documents on that transaction. that transaction.

There are no licensing fees or monthly bills. You pay per

Reduces your monthly costs

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Growing places

FINDit

Nevsun Resources’ high-grade copper mine in Eritrea has propelled the business to the top of BIV’s annual list of B.C.’s fastest-growing companies, in a field crowded with resource and technology firms | B16

Sponsored by

Aiming high

B.C.’s emerging growth trends

Among giants

Med-tech firm enters competitive arena

B3 B15

Top 10

Ranking B.C.’s fastest climbers

Pure growth

Real estate trust doubles market cap

B17 B18

BIVLIst

Top 100 fastest-growing companies in B.C.

B6, B8, B10, B12, B14

Congratulations to 100 companies that turn challenges into opportunities for growth.

At Grant Thornton LLP, we have an instinct for growth. And from our extensive experience working with publicly listed companies and privately held businesses in Vancouver and on the Lower Mainland, we’ve developed a deep understanding of what it takes to grow successfully in BC. For this reason, we’re very proud to be the only accounting firm that is a gold sponsor of Business in Vancouver’s Top 100 Fastest Growing Companies in BC awards. We offer hearty congratulations to everyone on this prestigious list.

How do we help businesses grow? By helping them approach growth from a perspective that looks beyond the bottom line.

Growing quickly is only to be envied if it’s accompanied by growing stronger. We help clients across all industries grow stronger every day. There is no better way to unlock their potential for growth

Colin Yakashiro, CA

Vancouver

Managing Partner

Victoria

T +1 604 455 2610

Langley

E Colin.Yakashiro@ca.gt.com

Kelowna

GrantThornton.ca Audit • Tax • Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

fastest 100

BUSINESSVANCOUVER September 16–22, 2014

B3

Tech and resources battle for growth expansion | Even

as the tech and mining industries compete for the top spot in the list of fastest-growing companies, one sector is dominating them both in terms of sheer numbers Anywhere there’s a population of one million or more, we either have people on the ground or we’re in the process of hiring people. And so we truly are a global operation

BY TYLER ORTON TORTON@BIV.COM

T

ech and resources continue to duel for supremacy when it comes to highgrowth businesses based in B.C. Combined, the two sectors accounted for nine out of the top 10 spots on Business in Vancouver’s annual list of fastest-growing companies.

Nevsun Resources (TSX:NSU) moved from second to first this year – the sixth consecutive year a mining company has topped the list.

The gold and copper mining company grew by an explosive 40,000% over the past five years, earning revenue of $160 million in 2013 and $565 million in 2012.

Four other spots on the list went to B.C. mining companies focused on gold and silver.

But the dominance of those companies could be in question next year as the price of precious metals declined sharply in 2013.

Furthermore, No. 4 on the list, Veris Gold, filed for creditor protection in 2014 after a 2013 fire at its primary asset in Nevada shut down operations unexpectedly while the price of gold was dropping. The company, which had revenue of $200 million and experienced five-year growth of 1,683% in 2013, has four other projects but only one active mining operation.

Tech still managed to outdo resources on the overall list, with 24 out of the top 100 companies getting representation. In 2012, 32 tech companies made the list.

Resources wasn’t far behind, with 22 companies making the list – down from 27 a year ago.

But the service sector was the clear winner after 35 companies, ranging from private security firms (Paladin Security) to restaurant chains (Famoso Neapolitan Pizzeria), were represented in the top 100. That’s up from 28 companies last year.

[] Alexander Fernandes CEO, Avigilon

Avigilon CEO Alexander Fernandes says he doesn’t see growth slowing down any time soon at his tech firm specializing in high-definition surveillance systems | Dominic Schaefer, BIV FILES

Paladin Security is among the fastest-growing service-sector companies in the province | Paladin Security

Mining company Veris Gold is No. 4 on the list of B.C.’s fastestgrowing businesses | Veris GOld

Despite that strong showing, Pure Industrial Real Estate Trust (TSX:AAR.UN) was the only service-oriented company to make the top 10.

Construction rounded out the top 100 after 20 companies from that sector made the list.

Avigilon (TSX:AVO).

The high-definition surveillance system company dropped slightly from fifth to eighth with 956% growth the past five years while bringing in $178 million in revenue in 2013.

Av ig i lon fou nder a nd CEO

In terms of growth, the highestranking tech company was No. 6 on this year’s list.

Renewable energy company Alterra Power Corp. (TSX:AXY) had 1,144% growth over the past five years and even managed to push past perennial tech favourite

Alexander Fernandes told Business in Vancouver the company is aiming for revenue of $500 million by 2016.

He said Avigilon has been able to sustain such growth by expanding sales, investing in research and development and boosting brand awareness through marketing and an increased presence at trade shows.

“I don’t really see growth ever going away,” Fernandes said.

“Anywhere there’s a population of one million or more, we either have people on the ground or we’re in the process of hiring people. And so we truly are a global operation.”

The tech startup, which had an initial public offering in 2011, was also in the business of acquisitions last year, purchasing RedCloud Security and VideoIQ. But the CEO said most of the company’s growth going forward would come from internal innovations. •

Featured On Business In Vancouver’s 2014 Top 100 Fast Growing Companies List

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B4

fastest 100

BUSINESSVANCOUVER September 16–22, 2014

Top 100 index Company

Company

Rank

4Refuel Canada LP

60

ABC Recycling Ltd

92

ABM Applied Biological Materials Inc

36

Absolute Software Corp

94

Action/BMS Group of Companies

91

Ainsworth Lumber Co Ltd

80

Alexco Resource Corp Alpha Technologies Ltd Alterra Power Corp

8 14 6

Amica Mature Lifestyles Inc

45

Ampco Manufacturers Inc/Ampco Grafix and Innovative Signage

64

name: .pdf AnnexFile Consulting Group Inc

76

Rank

CEFA Early Learning Schools

40

China Gold International Resources Corp Ltd

26

CKR Global

58

Clevest

24

Coast Capital Savings Union

98

Company

Company

Rank

Company

Rank

First Quantum Minerals Ltd

82

Mercator Minerals Ltd

48

Fortuna Silver Mines Inc

43

Methanex Corp

37

Glentel Inc

19

MIRA Floors & Interiors

29

Global Relay

39

Neovasc Inc

22

Global Village Consulting Inc

11

Great Panther Silver Ltd

81 90

Coast Mountain Wireless Communications Ltd

54

HUB International Insurance Brokers

Coastal Contacts Inc

95

28

Colliers International

61

Ignite Technical Resources

72

Nevsun Resources Ltd

1

New Gold Inc

51

Noise Digital Inc

44

Norsat International Inc

97

OneMove Technologies Inc

47

Pacific Insight Electronics Corp

50

Paladin Security

65

DNN Corp

12

Ike Enterprises Inc dba Left Coast Naturals

Domain7 Solutions Inc

53

Inland Group

96

Pan American Silver Corp

87

Edible Canada at the Market

20

Interfor Corp

33

People's Trust Co

32

International Web exPress Inc

74

Photon Control Inc

27

iQmetrix

41

Polaris Minerals Corp

52

Premium Brands Holdings Corp

46

Pure Industrial Real Estate Trust (PIRET)

5

42 EJM Construction Internal 31 Aurcana Corp file name: WSLeasing_BusinessInVancouver_4.8x6.2_2014.indd Management Ltd Key words: leasing 7 Avigilon 30 Eldorado Gold Corp FILE SIZE: 4.8" wide X 6.2” C M Y K 88 high | B&B Contracting Group 18 Endeavour Silver Corp B2GoldBLEED: Corp 0.0" on all sides 3 17 Energold Drilling Corp 71 Bellrock 93 Natural Foods Inc Prepared by: Westminster SavingsEverland Marketing Department 21 Boston Pizza Royalties 56 Promotional Marketing Services Coordinator:Fairware Vivian Cheung Income Fund Products Ltd D 604.528.3833 84 Canaccord Genuity GroupE vcheung@wscu.com 78 Falcon-Software Co Inc Inc 13 Neapolitan Prepared by: Westminster 99 SavingsFamoso Marketing Department Canfor Corp Pizzeria Graphic Designer: Carly Swift 75 CanWel Building 23 First Majestic Silver Corp Materials Group D 604.528.3845 E cswift@wscu.com

Iridia Medical

69

Kal Tire

89

KDS Construction Ltd

66

Lions Gate Entertainment Corp

85

LMS Reinforcing Steel Group

38

Lululemon Athletica Inc

25

MacDonald, Dettwiler and Associates Ltd

68

QHR Technologies Inc

79

RSI International Systems Inc

49

Signals Design Group Inc

66

Silver Standard Resources Inc

Softlanding Network Solutions Inc

70

Spa Boutique Ltd

16

Stemcell Technologies Inc

73

Sunrise Farms

77

TAG Oil Ltd

10

Taseko Mines Ltd

100

Tekskil Industries Inc

57

Ten Peaks Coffee Co Inc

62

TIO Networks Corp

63

Travelers Financial Group

59

Turquoise Hill Resources Ltd

34

Vega

15

Veris Gold Corp

4

Vision Critical

55

Wall Financial Corp

86

Western Forest Products Inc

83

WesternOne Inc

9

2

Silver Wheaton Corp

Rank

35

Sponsor’s Message

Sauder School of Business at UBC The Sauder School of Business is Canada’s Leading Academic Business School. Dedicated to rigorous and relevant teaching, our programs generate business leaders who drive change and shape industries and organizations around the world.

Sauder is committed to being an international leader in the creation and application of business knowledge, and to promoting lifelong success for our students and alumni. Congratulations to all the companies recognized as Business in Vancouver’s 2014 Top 100 Fastest Growing Companies.

fastest 100 top 15 Fastest-growing by sector Resource companies Nevsun Resources Ltd Silver Standard Resources Inc B2Gold Corp Veris Gold Corp Alexco Resource Corp TAG Oil Ltd Endeavour Silver Corp First Majestic Silver Corp China Gold International Resources Corp Ltd Eldorado Gold Corp Aurcana Corp Turquoise Hill Resources Ltd Silver Wheaton Corp Fortuna Silver Mines Inc Mercator Minerals Ltd

Service-based firms Pure Industrial Real Estate Trust (PIRET) Global Village Consulting Inc Famoso Neapolitan Pizzeria Spa Boutique Ltd Energold Drilling Corp Glentel Inc Edible Canada at the Market Boston Pizza Royalties Income Fund Lululemon Athletica Inc Ignite Technical Resources MIRA Floors & Interiors People's Trust Co CEFA Early Learning Schools Amica Mature Lifestyles Inc Fairware Promotional Products Ltd

Rank 1 2 3 4 8 10 18 23 26 30 31 34 35 43 48

BUSINESSVANCOUVER September 16–22, 2014

Chartered Accountants | Business Advisors

Technology firms Alterra Power Corp Avigilon DNN Corp Neovasc Inc Clevest Photon Control Inc ABM Applied Biological Materials Inc Global Relay iQmetrix Noise Digital Inc OneMove Technologies Inc RSI International Systems Inc Pacific Insight Electronics Corp Domain7 Solutions Inc Coast Mountain Wireless Communications Ltd

Rank 6 7 12 22 24 27 36 39 41 44 47 49 50 53 54

Rank

Manufacturing/construction firms

Rank

5 11 13 16 17 19 20 21 25 28 29 32 40 45 56

WesternOne Inc Alpha Technologies Ltd Vega Interfor Corp Methanex Corp LMS Reinforcing Steel Group EJM Construction Management Ltd Premium Brands Holdings Corp Ten Peaks Coffee Co Inc KDS Construction Ltd Ike Enterprises Inc dba Left Coast Naturals International Web exPress Inc CanWel Building Materials Group Sunrise Farms Ainsworth Lumber Co Ltd

9 14 15 33 37 38 42 46 62 66 72 74 75 77 80

B5

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B6

BUSINESSVANCOUVER September 16–22, 2014

fastest 100

Fastest-growing companies companiesin inB.C. B.C.

RANKED BY | BY | Percentage Ranked Percentagegrowth growthin inrevenue revenuebetween between 2009 2009 and and 2013 2013 Rank '14

Company

Principal(s)

Ownership

Product/service

Year founded

Total staff '13/'09

Revenue '13/'09 5-year rev growth

1

Nevsun Resources Ltd 669 Howe St Suite 760, Vancouver V6C 0B4 P: 604-623-4700 F: 604-623-4701 www.nevsun.com

Cliff Davis, CEO and director, Frazer Bourchier, COO

TSX:NSU

Precious and base metals mining

19911

NP NP

$160,353,3702 $399,0003 40,088.8%

2

Silver Standard Resources Inc 1055 Dunsmuir St Suite 800, Vancouver V7X 1G4 P: 604-689-3846 F: 604-689-3847 www.silverstandard.com

John Smith, president and CEO, Gregory Martin, senior VP and CFO

TSX:SSO

Operation, development, exploration and acquisition of 1946 precious-metal projects

971 NP

$185,796,0302 $6,214,6012 2,889.7%

3

B2Gold Corp 595 Burrard St Suite 3100, Vancouver V7X 1J1 P: 604-681-8371 F: 604-681-6209 www.b2gold.com

Clive Johnson, president and CEO, Mark Corra, senior VP of finance and CFO

TSX:BTO

Gold mining

2006

NP 925

$578,887,6992 $23,567,9772 2,356.2%

4

Veris Gold Corp 688 Hastings St W Suite 900, Vancouver V6B 1P1 P: 604-688-9427 F: 604-688-9426 www.verisgold.com

Francois Marland, president and CEO, Shaun Heinrichs, CFO

TSX:VG

Gold mining

1997

NP 160

Pure Industrial Real Estate Trust (PIRET) 925 Georgia St W Suite 910, Vancouver V6C 3L2 P: 604-398-2836 F: 604-681-5969 www.piret.ca Alterra Power Corp 888 Dunsmuir St Suite 600, Vancouver V6C 3K4 P: 604-699-4999 F: 604-682-3727 www.alterrapower.ca

Stephen Evans, trustee and co-CEO, Kevan Gorrie, trustee, president and coCEO, Francis Tam, CFO Ross Beaty, executive chair, Donald McInnes, vice-chair, John Carson, CEO

TSX:AAR.UN

Acquires, owns and operates a diversified portfolio of 2007 income-producing industrial properties across Canada

NP NP

$201,838,7722 $11,320,3492 1,683% $108,762,000 $6,748,139 1,511.7%

TSX:AXY

Renewable energy producer with operations in North America, South America, Iceland and Europe

2008

140 75

Avigilon 858 Beatty St 4th floor, Vancouver V6B 1C1 P: 604-629-5182 F: 604-629-5183 www.avigilon.com Alexco Resource Corp 200 Granville St Suite 1150, Vancouver V6C 1S4 P: 604-633-4888 F: 604-633-4887 www.alexcoresource.com

Alexander Fernandes, founder, TSX:AVO president, CEO and chairman of the board, Danny Kam, executive VP of engineering Clynton Nauman, president and CEO TSX:AXR

High-definition security solutions

2004

455 46

Silver mining

2004

NP NP

WesternOne Inc4 925 Georgia St W Suite 910, Vancouver V6C 3L2 P: 604-678-4042 F: 604-681-5969 www.weq.ca TAG Oil Ltd 885 Georgia St W Suite 2040, Vancouver V6C 3E8 P: 604-682-6496 F: 604-682-1174 www.tagoil.com Global Village Consulting Inc 375 Water St Suite 350, Vancouver V6B 5C6 P: 604-608-1779 F: 604-568-5710 www.global-village.net

Peter Blake, CEO, Geoff Shorten, president and COO, Carlos Yam, CFO

Seeks to acquire and grow businesses in the construction and infrastructure services sector

2006

1,100 150

Alex Guidi, director, Garth Johnson, CEO, TSX:TAO Drew Cadenhead, COO

Oil and gas production in New Zealand

1990

NP NP

$44,591,201 $4,923,856 805.6%

Leon Salvail, president and CEO

Privately held

Informatics consulting services in health and social services

1995

67 2

DNN Corp 9440 202nd St Suite 211, Langley V1M 4A6 P: 650-288-3151 F: 604-881-0050 www.dnnsoftware.com Famoso Neapolitan Pizzeria 3600 Lysander Lane Suite 370, Richmond V7B 1C3 P: 604-229-9767 F: 604-259-2510 www.famoso.ca

Shaun Walker, CTO

Privately held

Web content management and social business solutions

2003

73 23

Justin Lussier, CEO, Christian Bullock, Privately held chief business development officer, Jason Allard, COO

Neapolitan pizza restaurant

2007

14 10

Alpha Technologies Ltd 7700 Riverfront Gate, Burnaby V5J 5M4 P: 604-436-5900 F: 604-436-1233 www.alpha.ca Vega 3001 Wayburne Dr Suite 101, Burnaby V5G 4W3 P: 604-945-3133 F: 888-945-3033 www.myvega.com Spa Boutique Ltd 112 3rd Ave E Suite 200, Vancouver V5T 1C8 P: 604-559-9459 F: NP www.spaboutique.ca Energold Drilling Corp 543 Granville St Suite 1100, Vancouver V6C 1X8 P: 604-681-9501 F: 604-681-6813 www.energold.com Endeavour Silver Corp 700 Pender St W Suite 301, Vancouver V6C 1G8 P: 604-685-9775 F: 604-685-9744 www.edrsilver.com

Mark Schnarr, president and CEO, David Boroevich, CMO, John Kalbfleisch, COO, Sam Wong, CFO Charles Chang, president and founder

Privately held

Power electronics and hardware manufacturing

1975

625 200

Charles Chang (76.4%) Producer of premium, plant-based nutritional products 2001

148 30

Nancy Mudford, CEO and founder

Nancy Mudford

Retailer of more than 200 well-known and high-quality 2006 brands in cosmetics and health and wellness

19 3

Fred Davidson, president and CEO, James TSX-V:EGD Coleman, chairman and director, Steve Gold, CFO Bradford Cooke, CEO, Godfrey Walton, TSX:EDR; NYSE:EXK COO

Global contract drilling company with a socially and 1995 environmentally sensitive approach servicing the international mining, energy and manufacturing sector Silver and gold mining 2002

2,200 550

$16,639,3715 $1,871,115 789.3% $8,431,000 $1,093,000 671.4% $29,871,908 $4,452,6446 570.9% $220,000,000 $34,000,000 547.1% $72,200,000 $12,919,000 458.9% $3,600,000 $668,522 438.5% $122,807,000 $23,719,367 417.7%

Glentel Inc 8501 Commerce Crt, Burnaby V5A 4N3 P: 604-415-6500 F: 604-415-6565 www.glentel.com Edible Canada at the Market 1596 Johnston St, Vancouver V6H 3R9 P: 604-558-0040 F: 1-866-272-8777 www.ediblecanada.com

Thomas Skidmore, chair, president and CEO, Jas Boparai, executive VP and CFO

TSX:GLN

Telecommunications services and mobile solutions in Canada, the U.S., Australia and the Philippines

1963

4,700 1,384

Eric Pateman, president

Eric Pateman

Canadian restaurant and retail

2006

60 10

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Sources: Interviews with above companies and BIV research. Currency conversions use the average rate for the company’s fiscal year based on Bank of Canada’s noon rate. Companies must have had $250,000 in sales in 2009 and $1 million in 2013 to qualify. NP Not provided 1 - Date when name changed to Nevsun; originally founded in 1965 as Hogan Mines Ltd 2 - Converted from USD 3 - Royalty and other income 4 - Formerly WesternOne Equity Income Fund; name changed December 31, 2012 5 - Revenue includes Canada-wide operations 6 - System sales and head office revenues

TSX:WEQ.UN

1,500 758

$67,934,2592 $4,485,1302 1,414.7% $178,344,000 $16,881,964 956.4% $59,433,000 $5,818,000 921.5% $377,629,000 $41,659,748 806.5%

$285,058,8122 $57,876,0002 392.5% $1,366,481,000 $308,093,000 343.5% $3,235,787 $797,856 305.6%

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Carrie Schmidt, lists@biv.com.

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B8

fastest 100

BUSINESSVANCOUVER September 16–22, 2014

Fastest-growing companies companiesin inB.C. B.C.

RANKED BY | BY | Percentage Ranked Percentagegrowth growthin inrevenue revenuebetween between 2009 2009 and and 2013 2013 Rank '14

Company

Principal(s)

Ownership

Product/service

Year founded

Total staff '13/'09

Revenue '13/'09 5-year rev growth

Boston Pizza Royalties Income Fund 10760 Shellbridge Way Suite 100, Richmond V6X 3H1 P: 604-270-1108 F: 604-270-4168 www.bostonpizza.com Neovasc Inc 13700 Mayfield Pl Suite 2135, Richmond V6V 2E4 P: 604-270-4344 F: 604-270-4384 www.neovasc.com First Majestic Silver Corp 925 Georgia St W Suite 1805, Vancouver V6C 3L2 P: 604-688-3033 F: 604-639-8873 www.firstmajestic.com

Mark Pacinda, president and CEO

NP

Restaurant franchiser

1964

NP NP

Alexei Marko, CEO

TSX:NVC; Nasdaq:NVCN Developer, manufacturer and marketer of cardiovascular devices

2000

145 45

$77,920,000 $19,471,000 300.2% $11,750,000 $3,000,047 291.7%

Keith Neumeyer, CEO, Ramon Davila, COO

TSX:FR; NYSE:AG

Silver mining

1998

4,100 1,514

Thomas Ligocki, president and CEO

Privately held

Provides software for mobile workforce management and smart grid operations exclusively for electric, gas and water utilities Designer and retailer of technical athletic apparel

2002

105 56

25

Clevest 13911 Wireless Way, Richmond V6V 3B9 P: 604-214-9700 F: NP www.clevest.com Lululemon Athletica Inc 1818 Cornwall Ave Suite 400, Vancouver V6J 1C7 P: 604-732-6124 F: 604-874-6124 www.lululemon.com

1998

7,622 2,8612

$1,750,147,6811 $517,195,9291 238.4%

26

China Gold International Resources Corp Ltd One Bentall Centre Suite 660, 505 Burrard St, Box 27, Vancouver V7X 1M4 P: 604-609-0598 F: 604-688-0598 www.chinagoldintl.com

Bing Liu, CEO and executive director, Derrick Zhang, CFO

TSX:CGG

Gold and copper mining

2000

1,600 274

Christopher Weston, president

TSX-V:PHO

Bryce Stacey, Ken Hicks, managing partners

Privately held

Specializes in OEM manufacturing, UV/VIS/NIR 1988 spectroscopy, optical temperature and positioning sensors, optical flow meters in various industries Full-service IT recruitment contract consulting and full- 2005 time permanent placement

Kevin Bergstresser, owner

Privately held

Flooring supply and installation

2002

12 5

30

Photon Control Inc 8363 Lougheed Hwy Suite 200, Burnaby V5A 1X3 P: 604-422-8861 F: 604-422-8418 www.photon-control.com Ignite Technical Resources 355 Burrard St Suite 1295, Vancouver V6C 2G8 P: 604-687-6795 F: 604-687-6786 www.ignitetechnical.com Mira Floors & Interiors 9785 192nd St Suite 104, Surrey V4N 4C7 P: 604-856-4799 F: 604-856-4792 www.mirafloors.com Eldorado Gold Corp 550 Burrard St Suite 1188, Vancouver V6C 2B5 P: 604-687-4018 F: 604-687-4026 www.eldoradogold.com

$311,655,9791 $92,553,7151 236.7% $17,256,641 $5,387,710 220.3% $11,450,480 $3,577,729 220% $3,967,656 $1,328,918 198.6%

Paul Wright, CEO, Norman Pitcher, president, Fabiana Chubbs, CFO

TSX:ELD, NYSE:EGO, ASX:EAU

Gold and precious metals

1996

7,261 2,636

$1,195,477,8911 $411,941,1691 190.2%

31

Aurcana Corp 1188 Georgia St W Suite 1750, Vancouver V6E 4A2 P: 604-331-9333 F: 604-633-9179 www.aurcana.com

Kevin Drover, president and CEO, Salvador Huerta, CFO

TSX-V:AUN

Silver producer, mining and exploration

1998

NP NP

32

People's Trust Co 888 Dunsmuir St 14th floor, Vancouver V6C 3K4 P: 604-683-2881 F: 604-331-3469 www.peoplestrust.com

Derek Peddlesden, CEO, Samson Lim, Privately held senior VP and CFO, Bill Moffatt, president and COO Duncan Davies, president and CEO TSX:IFP.A

Boutique financial services firm

1985

109 79

Forest products; lumber manufacturer

1963

1,996 1,5904

$46,316,8441 $16,133,550 187.1% $254,910,000 $89,526,000 184.7% $1,105,222,000 $389,775,000 183.6%

Kay Priestly, CEO, Chris Bateman, CFO

TSX:TRQ

International mineral exploration, development and mining

1994

NP 1,1394

$113,449,6641 $41,154,3151 175.7% $751,403,6191 $273,265,4271 175% $2,530,861 $927,937 172.7%

21 22 23 24

27 28 29

Laurent Potdevin, CEO, John Currie, CFO, Nasdaq:LULU Tara Poseley, chief product officer

40 30 17 10

34

Interfor Corp3 1055 Dunsmuir St Suite 3500, Vancouver V7X 1H7 P: 604-689-6800 F: 604-689-6825 www.interfor.com Turquoise Hill Resources Ltd 200 Granville St Suite 354, Vancouver V6C 1S4 P: 604-688-5755 F: 604-688-7168 www.turquoisehill.com

35

Silver Wheaton Corp 666 Burrard St Suite 3150, Vancouver V6C 2X8 P: 604-684-9648 F: 604-684-3123 www.silverwheaton.com

Randy Smallwood, president and CEO, Gary Brown, senior VP and CFO

TSX, NYSE: SLW

Precious metals (silver and gold) streaming

2004

28 22

Peter Li, CEO, Lisa Young, CFO, Jun Li, chief scientific officer

Privately held

CRO, biotechnology, life science research reagent and services

2004

63 NP

37

ABM Applied Biological Materials Inc 13520 Crestwood Pl Suite 8, Richmond V6V 2G2 P: 604-247-2416 F: 604-247-2414 www.abmgood.com Methanex Corp 1800 Waterfront Centre, 200 Burrard St, Vancouver V6C 3M1 P: 604-661-2600 F: 604-661-2676 www.methanex.com

John Floren, president and CEO

TSX:MX

Production, distribution and marketing of methanol

1992

1,000 868

Norm Streu, president and COO, Ron McNeil, CEO and co-founder, Ivan Harmatny, director of corporate development and co-founder Warren Roy, founder and CEO, Shannon Rogers, president and general counsel

Privately held

38

LMS Reinforcing Steel Group5 6320 148th St, Surrey V3S 3C4 P: 604-598-9930 F: 604-598-9931 www.lmsgroup.ca

Supply, fabrication and installation of reinforcing steel 1999 and post-tensioning

550 300

Privately held

Cloud-based electronic message archiving, supervision 1999 and e-discovery solutions for the global financial sector

NP 64

Natacha Beim, founder and CEO

Natacha V. Beim (100%)

Progressive early learning and junior kindergarten 1998 learning curriculum and environment for children aged one to five

434 219

33

36

39 40

Global Relay 220 Cambie St Suite 200, Vancouver V6B 2M9 P: 604-484-6630 F: 604-608-2941 www.globalrelay.com CEFA Early Learning Schools 3081 Grandview Hwy, Vancouver V5M 2E4 P: 604-708-2332 F: 604-879-2330 www.cefa.ca

Sources: Interviews with above companies and BIV research. Currency conversions use the average rate for the company’s fiscal year based on Bank of Canada’s noon rate. Companies must have had $250,000 in sales in 2009 and $1 million in 2013 to qualify. NP Not provided 1 - Converted from USD 2 - As of February 1, 2009 3 Previously known as International Forest Products; name changed May 12, 2014 4 - 2008 figure 5 - Also known as Lower Mainland Steel

®

$267,296,5071 $71,526,0741 273.7% $12,544,004 $3,510,000 257.4%

$3,114,466,0051 $1,185,840,3001 162.6% $156,000,000 $60,186,000 159.2% $31,600,000 $12,400,000 154.8% $5,846,850 $2,396,150 144%

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Carrie Schmidt, lists@biv.com.

trusted solutions for over 25 years High Interest Accounts • Mortgage Lending • Secured & Prepaid Credit Cards

peoplestrust.com

Congratulations on your soaring achievement.

TELUS congratulates BC’s 100 fastest growing companies.

When you grow, BC grows with you.

Discover business solutions that can grow with you at telus.com/100fastest

Š 2014 TELUS Corporation.

B10 BUSINESSVANCOUVER September 16–22, 2014

fastest 100

Fastest-growing companies companiesin inB.C. B.C.

RANKED BY | BY | Percentage Ranked Percentagegrowth growthin inrevenue revenuebetween between 2009 2009 and and 2013 2013 Rank '14

Total staff '13/'09

Revenue '13/'09 5-year rev growth

Retail management and customer experience solutions 1999 for the North American wireless industry

230 88

Privately held

Commercial, health care, seniors housing, multi-family 1999 residential highrise and lowrise, institutional

20 12

$85,000,000 $35,000,000 142.9% $6,070,870 $2,519,089 141%

TSX:FVI

Silver mining in Latin America

1990

NP NP

Trevor Carr, president, CEO and CCO, Privately held Mark Nishiguchi, COO, CFO and managing partner Samir Manji, chairman and CEO, Arthur J. TSX:ACC Ayres, CFO and corporate secretary, David Minnett, president George Paleologou, president and CEO, TSX:PBH2 Will Kalutycz, CFO

Fully integrated online advertising and marketing services firm

1998

33 19

Management, marketing, design, development and ownership of luxury seniors residences in Canada

1996

1,600 1,086

Specialty food manufacturing and differentiated food distribution

2007

3,228 1,687

Matthew Proud, CEO, Philippe de Alberti, CTO

TSX-V:OM

Web-based real estate transaction platform

2004

NP 19

Bruce McLeod, president, CEO and director

TSX:ML

Copper, molybdenum and silver production

1998

400 300

Charles Ku, CEO

TSX-V:RSY

Web-based property management and reservation systems for the hotel and resort industry

1978

24 NP

J. Cowan McKinney, chairman of the board, Stuart Ross, president and CEO

NP

Electronic and LED design and manufacturing for the automotive and commercial vehicle industries

1989

807 350

$53,609,945 $24,240,455 121.2%

51

RSI International Systems Inc 134 Abbott St Suite 402 , Vancouver V6B 2K4 P: 604-984-6001 F: 604-984-6006 www.roomkeypms.com or www.welcometorsi.com Pacific Insight Electronics Corp 1155 Insight Dr, Nelson V1L 5P5 P: 250-354-1155 F: 250-505-2131 www.pacificinsight.com New Gold Inc 555 Burrard St Suite 1800 PO Box 212, Vancouver V7X 1M9 P: 604-696-4100 F: 604-696-4110 www.newgold.com

Randall Oliphant, executive chairman, Robert Gallagher, president and CEO

TSX:NGD

Gold mining

1980

1,7803 NP

$803,013,0301 $369,747,0471 117.2%

52

Polaris Minerals Corp 1055 Georgia St W Suite 2740 PO Box 11175, Vancouver V6E 3R5 P: 604-915-5000 F: 604-915-5001 www.polarmin.com

Herbert Wilson, president and CEO

TSX:PLS

Sand and gravel quarry

1999

NP NP

Domain7 Solutions Inc 37 Dunlevy Ave, Vancouver V6A 3A3 P: 604-855-3772 F: 604-854-3349 www.domain7.com Coast Mountain Wireless Communications Ltd 2809 Kalum St, Terrace V8G 2M4 P: 250-638-0577 F: 250-638-0210 www.coastmountainwireless.ca Vision Critical 200 Granville St, Vancouver V6C 1S4 P: 604-647-1980 F: 604-647-1005 www.visioncritical.com Fairware Promotional Products Ltd 178 3rd Ave W, Vancouver V5Y 1E9 P: 604-732-3247 F: 604-732-3247 www.fairware.com Tekskil Industries Inc 998 Harbourside Dr Suite 102, North Vancouver V7P 3T2 P: 604-985-2250 F: 877-576-8361 www.tekskil.com CKR Global 17 Fawcett Rd Suite 225, Coquitlam V3K 6V2 P: 604-517-4545 F: 604-517-4510 www.ckrglobal.com Travelers Financial Group 4180 Lougheed Hwy Suite 500, Burnaby V5C 6A7 P: 604-293-0202 F: 604-473-3816 www.travelersfinancial.com 4Refuel Canada LP 9440 202nd St Suite 215, Langley V1M 4A6 P: 604-513-0386 F: 604-513-0397 www.4refuel.com

Shawn Neumann, CEO

Shawn Neumann (100%)

Web strategy, storytelling, design, technology and marketing

1996

40 24

Rob Dykman, general manager

Privately held

Two-way radio, wireless broadband, data and satellite 1999 communications

11 12

Andrew Reid, founder, president and chief product officer

Privately held

683 298

Denise Taschereau, CEO, Sarah White, COO

Privately held

Provides a cloud-based customer intelligence platform 2000 allowing companies to build engaged, secure communities of customers Leading distributor of ethically sourced and 2004 environmentally responsible promotional merchandise

NP

NP

On-camera and speech teleprompters; talent cueing products

8 2

Robert Burns, president and CEO, Kenneth Cahoon, VP, Len Copp, COO

Privately held

485 200

Jim Case, CEO, Gary Thompson, partner, Privately held Roberto Cortese, COO

Full-service risk mitigation firm: investigation, training, 1975 security consulting, protection, risk assessments and pre-employment screening Automotive leasing, aircraft financing, equipment 1986 finance and leasing and energy financing

John Gleason, president and CEO

Fuel management

368 220

$46,238,3901 $21,505,5791 115% $4,500,000 $2,100,000 114.3% $3,400,000 $1,600,000 112.5% $100,000,000 $48,304,367 107% $1,954,462 $944,526 106.9% $1,125,000 $550,000 104.5% $40,000,000 $20,000,000 100% $320,000,000 $161,000,000 98.8% $447,539,409 $229,626,393 94.9%

41 42 43 44 45 46 47 48 49 50

53 54 55 56 57 58 59 60

Company

Principal(s)

Ownership

iQmetrix 250 Howe St Suite 1210, Vancouver V6C 3R8 P: 866-476-3874 F: 604-568-0462 www.iqmetrix.com EJM Construction Management Ltd 18428 53rd Ave Suite 205, Surrey V3S 7A4 P: 604-575-7780 F: 604-575-7790 www.ejmgroup.com Fortuna Silver Mines Inc 200 Burrard St Suite 650, Vancouver V6C 3L6 P: 604-484-4085 F: 604-662-8829 www.fortunasilver.com

Christopher Krywulak, president and CEO Privately held Ed Mocnik, president Jorge A. Ganoza, president, CEO and director

Noise Digital Inc 856 Homer St Suite 200, Vancouver V6B 2W5 P: 604-689-9574 F: NP www.noisedigital.com Amica Mature Lifestyles Inc 1111 Melville St 10th floor, Vancouver V6E 3V6 P: 604-608-6777 F: 604-608-6717 www.amica.ca Premium Brands Holdings Corp 10991 Shellbridge Way Suite 100, Richmond V6X 3C6 P: 604-656-3100 F: 604-656-3170 www.premiumbrandsholdings.com OneMove Technologies Inc 625 Howe St Suite 1400, Vancouver V6C 2T6 P: 604-662-8207 F: 604-647-2215 www.econveyance.com Mercator Minerals Ltd 625 Howe St Suite 1050, Vancouver V6C 2T6 P: 604-694-0005 F: 604-558-0058 www.mercatorminerals.com

Jack Lee

Product/service

Sources: Interviews with above companies and BIV research. Currency conversions use the average rate for the company’s fiscal year based on Bank of Canada’s noon rate. Companies must have had $250,000 in sales in 2009 and $1 million in 2013 to qualify. NP Not provided 1 - Converted from USD 2 - Converted from an income trust on July 22, 2009 3 - BIV estimate

Year founded

1981

1995

9 NP

88 75

$141,502,0811 $58,729,2331 140.9% $7,543,000 $3,250,000 132.1% $98,259,000 $42,382,000 131.8% $1,072,737,000 $462,764,000 131.8% $3,500,000 $1,513,039 131.3% $229,002,6521 $101,203,0001 126.3% $2,944,964 $1,317,357 123.6%

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Carrie Schmidt, lists@biv.com.

PRECISION MEASUREMENT SOLUTIONS

Local OEM Technology Manufacturer Makes BC’s Top 100 Fastest Growing Companies, 4 Years Running!

www.photon-control.com

ftix

BUSINESSVANCOUVER September 16–22, 2014

ADVER TISING FE AT URE

Focus on success “Consistent, caring, and knowledgeable, we finally feel as if there is a bank out there that truly values our business relationship.”

Stefano Walker VP Sales & Marketing at PrinterWorks

Left, back: Stephen Allen; front, left: Josh Richardson; middle: Shereen Kadies; back right: Taylor Spelt; front, right: Mike Spiess

A teAm you cAn count on

Canadian Western Bank’s Private Business Banking team takes business relationships personally.

A

s the financial services industry continues to trend towards centralization and automation, Canadian Western Bank (CWB) is sticking to its roots by making local expertise and exceptional service accessible to business owners in the West.

That commitment is exemplified by the Private Business Banking team at CWB’s Park Place branch. The team is dedicated exclusively to serving private businesses with term and operating loan requirements in the $250,000 to $3 million range.

With expertise in commercial lending, construction financing and

term real estate mortgages, the Private Business Banking specialists operate as true partners with their clients, working closely with them to grow their business.

“As we were not satisfied with our bank at the time, we chose to explore a new relationship with CWB,” said Trevor Magee, VP & General Manager at Howe Sound Brewing Co. “Ultimately, we chose CWB over another banking partner because they were willing to not only provide us with our current needs, but support our planned growth.”

Equipped with CWB’s suite of business accounts plus a full line of cash management products and

There when you need it, growing when you don’t.

Bundle it with an operating account and get even more benefit.

Mike Spiess AVP, Commercial Banking P: 604.602.2756 / C: 778.839.4217 E: mike.spiess@cwbank.com

services, the Private Business Banking specialists have all the tools to help drive growth for their clients.

One might expect to pay steep fees for a privileged level of service granting direct access to a dedicated team, but at CWB there are no added costs – it’s the way they work with all their clients.

Given one of the largest complaints from borrowers is Account Manager turnover rates, the Private Business Banking team is able to cultivate a relationship to $6 million with a borrower before even considering introducing a new CWB commercial account manager into the relationship.

This results in continuity and a stronger

1.35%

*

Business Savings Account

Private Business Banking Group Park Place branch 100 - 666 Burrard Street / Vancouver cwbank.com

*Rate is subject to change without notice. Interest is calculated on the daily closing balance based on the portion within each tier and paid monthly. Interest is paid as follows: 1.30% on deposits up to $250,000, 1.35% on deposits between $250,000.01 to $5 million and 0.25% on deposits above $5 million. Available in-branch only.

relationship, which their clients prefer.

“Most companies and institutions are only as strong as their employees.

This is no different at CWB,” said Stefano Walker, VP Sales & Marketing at PrinterWorks. “Their staff stands head and shoulders above their competition when it comes to being helpful, knowledgeable, and respectful.”

CWB’s success, including over 100 consecutive profitable quarters, is based on building solid relationships with their clients. “Consistent, caring, and knowledgeable, we finally feel as if there is a bank out there that truly values our business relationship,” concludes Walker. •

B11

fastest 100

B12 BUSINESSVANCOUVER September 16–22, 2014

Fastest-growing companies companiesin inB.C. B.C.

RANKED BY | BY | Percentage Ranked Percentagegrowth growthin inrevenue revenuebetween between 2009 2009 and and 2013 2013 Rank '14

61 62 63 64 65 66 66 68 69 70 71 72 73 74 75 76 77 78 79 80

Company

Principal(s)

Ownership

Year founded

Total staff '13/'09

Revenue '13/'09 5-year rev growth

Colliers International 200 Granville St Suite 1900, Vancouver V6C 2R6 P: 604-681-4111 F: 604-681-2911 www.collierscanada.com

Michael Bishop, SVP, Western Canada

FirstService Corp (70%) Fully integrated commercial real estate services

1898

12,300 15,052

Chemical-free, green coffee decaffeination

2000

NP NP

Cloud-based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America Screen and digitally printed graphics and labels, interface display solutions, custom parts and components Security officers, mobile patrols, emergency response, home alarms, K9 patrol, access control, CCTV, perimeter protection systems, remote video monitoring General building contractors focusing on new construction and renovation; sectors include commercial, institutional and light industrial Communications and design consultancy

1997

80 53

1967

100 86

1976

6,250 2,4002

1984

46 36

1984

16 NP

TSX:MDA

Provides operational communications solutions to commercial and government organizations

1969

4,800 3,200

Vern Biccum, president

Allan Holmes (100%)

1998

90 47

Shaun Roberts, president, Andrew Sobieski, managing director, Mahmood Jaffer, technical director Tara Landes, president and founder

Privately held

AED program solutions, paramedic services, medical education, health consulting, physician engagement and emergency preparedness planning SharePoint, managed services, cloud services, Microsoft enterprise infrastructure and staffing solutions Boutique management consulting firm

2000

37 23

2009

8 4

Ian Walker, owner and president

Ian Walker (82%)

Manufacturer and distributor of organic and natural foods

1996

48 21

Allen Eaves, president and CEO

Privately held

Cell separation, culture media, antibodies, instruments, 1993 education and contract assay services

485 274

Byron Sheardown, president and CEO

Byron Sheardown (90%)

Newspaper, magazine, catalogue and flyer printing

1997

50 NP

Amar Doman, chairman and CEO, Marc Seguin, president

NP

Distribution of lumber, building supplies and associated products

1989

471 669

Stacey Cerniuk, president and CEO

Stacey Cerniuk

IT and management consulting services including 1998 contract, permanent staffing and outsourced solutions

203 120

Peter Shoore, president

Privately held

Food processing

1,300 1,050

$1,358,165,810 $716,614,1781 89.5% $58,873,000 $31,160,000 88.9% $40,456,886 $21,471,403 88.4% $20,000,000 $10,700,000 86.9% $165,000,000 $88,600,000 86.2% $19,800,000 $10,800,000 83.3% $2,200,000 $1,200,000 83.3% $1,818,984,000 $1,000,890,000 81.7% $6,627,026 $3,649,963 81.6% $5,150,000 $2,840,000 81.3% $1,200,000 $664,000 80.7% $19,213,853 $10,687,009 79.8% $70,000,000 $39,000,000 79.5% $9,800,000 $5,500,000 78.2% $725,836,000 $408,172,000 77.8% $21,161,958 $11,913,086 77.6% $500,800,000 $289,328,206 73.1% $6,000,000 $3,500,000 71.4% $23,653,378 $13,822,994 71.1% $488,056,000 $285,915,000 70.7%

Ten Peaks Coffee Co Inc 3131 Lake City Way, Burnaby V5A 3A3 P: 604-420-4050 F: 604-420-8711 www.tenpeakscoffee.ca TIO Networks Corp 250 Howe St Suite 1500, Vancouver V6C 3R8 P: 604-298-4636 F: 604-298-4216 www.tionetworks.com Ampco Manufacturers Inc/Ampco Grafix and Innovative Signage 9 Burbidge St Suite 101, Coquitlam V3K 7B2 P: 604-472-3800 F: 604-944-4068 www.ampcomfg.com Paladin Security 3001 Wayburne Dr Suite 201, Burnaby V5G 4W3 P: 604-677-8700 F: 604-677-8701 www.paladinsecurity.com KDS Construction Ltd 16250 20th Ave, Surrey V3S 9M8 P: 604-535-8152 F: 604-535-8132 www.kdsconstruction.ca Signals Design Group Inc 27 6th Ave W, Vancouver V5Y 1K2 P: 604-732-9827 F: 604-732-9853 www.signals.ca MacDonald, Dettwiler and Associates Ltd 13800 Commerce Pkwy, Richmond V6V 2J3 P: 604-278-3411 F: 604-231-2787 www.mdacorporation.com Iridia Medical 1644 3rd Ave W, Vancouver V6J 1K2 P: 604-685-4747 F: 604-685-4748 www.iridiamedical.com Softlanding Network Solutions Inc 555 Hastings St W Suite 1605, Vancouver V6B 4N6 P: 604-633-1410 F: 604-633-1409 www.softlanding.ca Bellrock 5166 Prince Edward St, Vancouver V5W 2X4 P: 604-345-0424 F: 604-608-9027 www.bellrock.ca Ike Enterprises Inc dba Left Coast Naturals 4612 Dawson St, Burnaby V5C 4C3 P: 604-879-9100 F: 604-879-9164 www.leftcoastnaturals.com Stemcell Technologies Inc 570 7th Ave W Suite 400, Vancouver V5Z 1B3 P: 604-877-0713 F: 604-675-7830 www.stemcell.com International Web exPress Inc 1455 Brigantine Dr Suite 1, Coquitlam V3K 7C2 P: 604-526-8557 F: 604-526-8004 www.intwebexpress.com CanWel Building Materials Group 609 Granville St Suite 1100, Vancouver V7Y 1G6 P: 604-432-1400 F: 604-436-6670 www.canwel.com Annex Consulting Group Inc 1075 Georgia St W Suite 1300, Vancouver V6E 3C9 P: 604-638-8878 F: 604-639-8885 www.annexgroup.com Sunrise Farms 13542 73A Ave, Surrey V3W 1C9 P: 604-596-9505 F: 604-596-6966 sunrisefarms.ca Falcon-Software Co Inc 2826 Bryn Maur Rd, Victoria V9B 3T4 P: 250-480-1311 F: 250-480-1322 www.falcon-software.com QHR Technologies Inc 1620 Dickson Ave Suite 300, Kelowna V1Y 9Y2 P: 250-979-1701 F: 250-717-5266 www.qhrtechnologies.com Ainsworth Lumber Co Ltd 1055 Dunsmuir St Suite 3194, Vancouver V7X 1L3 P: 604-661-3200 F: 604-661-3201 www.ainsworthengineered.com

Frank Dennis, president and CEO, Sherry TSX:TPK Tryssenaar, CFO Hamed Shahbazi, founder and CEO

TSX-V:TNC

Dann Konkin, president and CEO

NP

Ashley Cooper, CEO, Ted Reid, CFO, Fraser Cooper, CTO

Privately held

Kelly Shannon, president, Marvin Kale, vice-president

Kelly Shannon and Marvin Kale

Kosta Tsetsekas, Robyn Sussel, principals

Privately held

Daniel Friedmann, president and CEO

NP

Product/service

1983

Gary Eisenstein, president and founder, Privately held Heather MacFayden, VP, production, Natalie Evans, VP, operations Al Hildebrandt, president and CEO, Jerry TSX-V:QHR Diener, CFO

Consulting, designing, developing and deploying a 1993 complete range of website services, specializing in web CMS solutions Software applications for physicians and clinics 1997 through licensing and hosted services

45 30

Jim Lake, president and CEO, Rick Eng, CFO

Engineered wood products manufacturing

710 640

TSX:ANS

Sources: Interviews with above companies and BIV research. Currency conversions use the average rate for the company’s fiscal year based on Bank of Canada’s noon rate. Companies must have had $250,000 in sales in 2009 and $1 million in 2013 to qualify. NP Not provided 1 - Converted from USD 2 - 2008 figure

Essential guide to

meeting & event planning in British Columbia

1952

203 70

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Carrie Schmidt, lists@biv.com.

Meeting Places is your ultimate resource for conducting your best event. Distributed to all Business in Vancouver subscribers and to the Vancouver Board of Trade Membership.

Advertising Close Date: September 23, 2014 Contact Katherine at 604-608-5158 or kbutler@biv.com

biv.com/publications

B14 BUSINESSVANCOUVER September 16–22, 2014

fastest 100

Fastest-growing companies companiesin inB.C. B.C.

RANKED BY | BY | Percentage Ranked Percentagegrowth growthin inrevenue revenuebetween between 2009 2009 and and 2013 2013 Rank '14

Company

Principal(s)

Ownership

Product/service

Year founded

Total staff '13/'09

Revenue '13/'09 5-year rev growth

Great Panther Silver Ltd 333 Seymour St Suite 800, Vancouver V6B 5A6 P: 604-608-1766 F: 604-608-1744 www.greatpanther.com First Quantum Minerals Ltd 543 Granville St 8th floor, Vancouver V6C 1X8 P: 604-688-6577 F: 604-688-3818 www.first-quantum.com

Robert Archer, president and CEO

TSX:GPR

Silver mining

1965

350 158

$53,954,000 $31,731,715 70%

Philip Pascall, chair, CEO and director, Clive Newall, president

TSX:FM

Exploration, development and operating of mines

1996

13,661 7,500

83

Western Forest Products Inc 700 Georgia St W Suite 510 PO Box 10032, Vancouver V7Y 1A1 P: 604-648-4500 F: 604-681-9584 www.westernforest.com

Donald Demens, CEO, Brian Cairo, CFO and corporate secretary

TSX:WFP

Forest products

2004

1,844 2,140

84

Canaccord Genuity Group Inc2 609 Granville St Suite 2200, Vancouver V7Y 1H2 P: 604-643-7300 F: NP www.canaccordgenuitygroup.com

TSX, LSE:CF3

Independent, full-service financial services firm focused 1950 on wealth management and global capital markets

2,031 1,530

85

Lions Gate Entertainment Corp 250 Howe St 20th floor, Vancouver V6C 3R8 P: 877-848-3866 F: NP www.lionsgate.com

Paul Reynolds, president and CEO, Canaccord Genuity Group Inc, Matthew Gaasenbeek, president, Canaccord Genuity Canada, Bradley Kotush, CFO Mark Rachesky, chair, Jon Feltheimer, CEO, Michael Burns, vice-chair

$3,659,131,7101 $2,171,208,9001 68.5% $977,500,000 $580,500,000 68.4% $797,122,000 $477,721,000 66.9%

NYSE:LGF

Movie and television production and distribution

1997

NP 497

TSX:WFC

Real estate

1969

NP NP

81 82

$2,789,114,4161 $1,674,555,1171 66.6% $274,861,895 $167,557,929 64%

Wall Financial Corp 1088 Burrard St Suite 3502, Vancouver V6Z 2R9 P: 604-893-7131 F: 604-893-7179 Pan American Silver Corp 625 Howe St Suite 1500, Vancouver V6C 2T6 P: 604-684-1175 F: 604-684-0147 www.panamericansilver.com

Bruno Wall, president

Geoff Burns, director, president and CEO, TSX:PAA Steven Busby, COO, Ross Beaty, chair

Silver mining

1979

7,7004 6,5005

Gary Bailey, president

Utility works, subdivision preparation, road building, aggregate sales and bridge construction

1948

315 NP

Robert Foord, president, Ken Chaun, CFO Privately held

Tire and mechanical sales and service

1953

5,331 NP

Chad Robertson, regional president, Privately held Canada west, Tina Osen, co-president and co-CEO Willy Disler, president and CEO, Brady Privately held Carthy, vice-president

Insurance brokerage

1998

7,000 3,000

Technology contracting company with expertise in all aspects of electrical, voice, data communications and security systems integration

1973

160 160

97

B&B Contracting Group 3077 188th St, Surrey V3S 9V5 P: 604-539-7200 F: 604-539-7230 www.bbcontracting.com Kal Tire 1540 Kalamalka Lake Rd, Vernon V1T 6V2 P: 250-542-2366 F: 250-542-1218 www.kaltire.com HUB International Insurance Brokers 4350 Still Creek Dr Suite 400, Burnaby V5C 0G5 P: 604-269-1000 F: 604-269-1001 www.hubinternational.com Action/BMS Group of Companies 1277 Georgia St E, Vancouver V6A 2A9 P: 604-676-0136 F: 604-222-8575 www.actioncom.ca, www.bmscom.com ABC Recycling Ltd 8081 Meadow Ave, Burnaby V3N 2V9 P: 604-522-9727 F: 604-522-9723 www.abcrecycling.com Everland Natural Foods Inc 7442 Fraser Park Dr, Burnaby V5J 5B9 P: 604-638-9255 F: 604-630-8800 www.everland.ca Absolute Software Corp 1055 Dunsmuir St Suite 1600, Vancouver V7X 1K8 P: 604-730-9851 F: 604-730-2621 www.absolute.com Coastal Contacts Inc 2985 Virtual Way Suite 320, Vancouver V5M 4X7 P: 604-669-1555 F: 604-669-6855 www.clearlycontacts.ca Inland Group 2482 Douglas Rd, Burnaby V5C 6C9 P: 604-291-6021 F: 604-299-7819 www.inland-group.com Norsat International Inc 4020 Viking Way Suite 110, Richmond V6V 2L4 P: 604-821-2800 F: 604-821-2801 www.norsat.com

98

86 87 88 89 90 91 92 93 94 95 96

99 100

Privately held

David Yochlowitz, CEO

Privately held

Scrap-metal processor, exporter and trader

1912

NP NP

Rajinder Bagga, CEO

Privately held

Food manufacturing

2005

15 NP

Geoff Haydon, CEO, Phil Gardner, CTO, Errol Olsen, CFO

TSX:ABT

1993

413 301

Roy Hessel, CEO

NP

Persistent endpoint security and management solutions for computers, laptops and ultra-portable devices and the data they contain Leading direct-to-consumer retailer of contact lenses, eyeglasses and related vision-care products

2000

626 260

Leigh Parker, chair, Richard McConnachie, vice-chair, Bill Currie, president Amiee Chan, president and CEO, Arthur Chin, CFO

Parker family (100%)

North American truck and heavy equipment dealer

1949

1,056 959

TSX:NII

Wireless communications products and services for remote and challenging applications

1977

155 65

Coast Capital Savings Credit Union 15117 101st Ave, Surrey V3R 8P7 P: 604-517-7400 F: 604-517-7405 www.coastcapitalsavings.com

Don Coulter, interim president and CEO

Member-owned

Full-service financial institution

2000

NP NP

Canfor Corp 1700 75th Ave W Suite 100, Vancouver V6P 6G2 P: 604-661-5241 F: 604-661-5253 www.canfor.com Taseko Mines Ltd 1040 Georgia St W Suite 1500, Vancouver V6E 4H1 P: 778-373-4533 F: 778-373-4534 www.tasekomines.com

Don Kayne, president and CEO

TSX:CFP

Forest products

1938

3,973 3,884

Stuart McDonald, CFO, John McManus, COO, Russell Hallbauer, president and CEO

TSX:TKO

Gold, copper and molybdenum mining and development

1966

680 377

Sources: Interviews with above companies and BIV research. Currency conversions use the average rate for the company’s fiscal year based on Bank of Canada’s noon rate. Companies must have had $250,000 in sales in 2009 and $1 million in 2013 to qualify. NP Not provided 1 - Converted from USD 2 - Changed name on October 1, 2013; previously known as Canaccord Financial 3 - Moved from AIM to LSE in July 2012 4 - BIV estimate 5 Includes employees and contractors 6 - Net interest income and other income

$849,156,6701 $519,381,6501 63.5% $135,000,000 $83,000,000 62.7% $1,382,000,000 $857,000,000 61.3% $176,944,000 $110,985,000 59.4% $30,200,000 $18,993,669 59% $159,000,000 $100,000,000 59% $2,000,000 $1,278,844 56.4% $83,200,000 $53,218,894 56.3% $217,550,000 $139,870,000 55.5% $752,400,000 $484,798,000 55.2% $37,506,5871 $24,169,2491 55.2% $425,567,000 $274,667,0006 54.9% $3,194,900,000 $2,075,800,000 53.9% $290,056,000 $188,902,000 53.5%

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Carrie Schmidt, lists@biv.com.

Space close September 22 for the October issue.

For more information on Katherine Butler advertising contact: office : 604-688-2398 toll free: 1-800-208-2011 e-mail: kbutler@biv.com

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fastest 100

BUSINESSVANCOUVER September 16–22, 2014

B15

B.C. company finds its feet among med-tech titans health sector | Fresh

from $25 million capital injection, Neovasc lists on Nasdaq and TSX while looking ahead to clinical trials and shrugging off claims of IP theft

By Glen Korstrom gkorstrom@biv.com

A

Neovasc has a material shot at being a major player in a sea of giants in an important cardiovascular market, but there’s a long way to go

stock-market-darling B.C. medical devices company looks ahead to clinical trials and what its CEO believes is a rosy future – despite a lawsuit alleging that it stole another company’s intellectual property.

N e ova s c I n c . ( TS X : N VC ; Doug Loe Nasdaq:NVCN) has been coast- Analyst, Euro Pacific ing on success earned in January, when surgeons at St. Paul’s Hospital successfully implanted one company debuted on the Nasdaq of the company’s Tiara devices exchange in May and graduated into a patient to fix a leaky heart to the TSX big board in June. valve without requiring open“Neovasc has a material shot heart surgery. at being a major player in a sea It was only the second time of giants in an important cardiothat doctors had done such an vascular market, but there’s a long way to go,” said Euro Pacifoperation.

Surgeons have used similar de- ic’s Doug Loe, who is the only vices for years to fix problems in analyst to cover Neovasc and has the aortic valve, but only once the stock listed with a buy rating. before in the mitral valve via “Best-case scenario is that catheter.

Neovasc’s device gets approved Neovasc’s shares, then listed and launched by late 2019, which on the TSX Venture Exchange, is aggressive and assumes that jumped 35% post-operation and everything goes right between are up more than 400% in the now and then.” past two years.

With that success, Neovasc has glacier 1 19/09/13 9:38 AMbecome Page 1 a target, Neovasc’s CEO, ThatInvestor_Layout success helped Neovasc land a $25.2 million bought deal Alexei Marko, told Business in equity financing in March. The Vancouver.

[]

Neovasc CEO Alexei Marko has steered his medical device company’s stock price up more than 400% in the past two years

Privately held Irvine, California-based CardiAQ Valve Technologies sued Neovasc in June in Massachusetts District Court alleging that Neovasc committed “fraud, misappropriation of trade secrets, breach of contract and unfair and deceptive trade practices.”

Marko dismissed CardiAQ’s claims.

“Unfortunately the medical device space is one that tends to be littered with [lawsuits],” he said. “Whoever is at the lead of the pack unfortunately gets suits filed on them by all the folks who aren’t.”

Neovasc plans to start clinical trials on its Tiara device this fall.

Loe said the health-care niche in which Neovasc competes is “a blockbuster market” with several players, including sector leader Edwards Lifesciences.

The challenge for all competitors has been how to make a valve that was stable enough to be “smooshed up into a geometry that would fit on the tip of a catheter so you could administer it.”

The St. Paul’s Hospital patient who received Neovasc’s mitral valve prosthetic earlier this year has since died. Loe, however, said that his understanding is that the patient did not die from issues related to the Tiara device.

“Anyone who enrols in any of these first-in-human studies is very sick and probably only has weeks to live,” he said. “If I had severe mitral regurgitation and I had any other option that could prolong my life materially, I’m not sure I would subject myself to an experimental medical procedure if I didn’t have to.”

A n August 17 INK Research report revealed that Neovasc insiders have sold a net value of shares worth $5,411,260 in the past year. •

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fastest 100

B16 BUSINESSVANCOUVER September 16–22, 2014

The 50-year-old overnight success story Mining | Junior

exploration company founded in 1965 was fastest-growing company in 2013

By Nelson Bennett nbennett@biv.com

A

rich deposit, a co-operative government and impeccable timing have combined to earn Vancouver’s Nevsun Resources Ltd. (TSX:NSU) the top berth on Business in Vancouver’s list of fastest-growing companies for 2013.

Since starting work on a goldcopper-zinc mine in Eritrea, East Africa, in 2008, Nevsun has been

firing on all cylinders.

“The grades have been coming in higher than expected over the last few quarters, they’re meeting their guidance and hitting it out of the park,” said Stefan Ioannou, a mining analyst with Haywood Securities.

For an industry generating so many negative headlines, Nevsun is a rare good-news story. The company has $350 million in cash on its books and a total of $500 million in working capital, and

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it is now shopping around to buy Timing is everything in new assets, most likely outside the mining industry, and of Eritrea.

“We’re looking to buy another these guys have fortunately producing [mine] or development hit the ground running project,” said Scott Trebilcock, Nevsun’s vice-president of business development and investor relations. “We want to grow this Stefan Ioannou company, not through exploring Mining Analyst, haywood securities but through developing other projects.”

Nevsun’s Bisha mine went into production in late 2010, producing low-cost doré (an alloy containing both silver and gold) when gold was still at $1,400 per at $125 million, it came in at $110 ounce.

In August 2011, the company million.

“Coming in under budget is announced the state-owned Eritrean National Mining Corp. obviously a huge feather in your (Enamco) would invest $253.5 cap and it’s pretty rare,” Ioanmillion in the project. Enamco nou said.

T he copper came into pronow owns a 40% stake in the mine. That has helped the com- duction in December 2013 when pany finance subsequent copper copper prices were still above and zinc circuits.

US$4 per pound, and now the The Bisha deposit is a rich one, company is investing another with a layer of gold on top of a $90 million in a zinc circuit, at layer of copper, which sits atop a time when zinc prices are anticipated to improve. a layer of zinc.

“Because we have a very rich “Bisha is a world-class deposit,” Ioannou said. “It’s large copper mine, the earnings and and it has very high grades.” revenue growth have been huge It also is well located, as it is in 2013 to 2014,” Trebilcock said. in f lat terrain with access to “We’re planning to have zinc water and power and is close production in late 2016, which, if to Eritrea’s third-largest city, you believe the current analysts’ meaning it has access to a local forecasts, should be well timed workforce who can commute to for a robust zinc market.” the mine, which employs 900 “Timing is everything in the Eritreans and 100 expatriates. mining industry, and these guys As the topmost gold was pro- have fortunately hit the ground cessed, the company built a cop- running,” Ioannou said. per processing plant. Budgeted I n add ition to the Bisha

[]

deposit, Nevsun owns other deposits within a few kilometres of the mine.

Despite its recent rapid growth, Nevsun is by no means an overnight success story. In fact, it’s a story that started nearly half a century ago.

Founded in 1965 by Vancouver prospector Ed Angus, who died in 2012, Nevsun’s discoveries included deposits in Ghana, Mali and Eritrea.

Some of the world’s richest deposits are located in countries that are politically unstable, which explains why, despite good mineral deposits, Eritrea had no major mining operations before Nevsun’s Bisha mine.

It wasn’t until 1993, when Eritrea won its independence from Ethiopia and was formally recognized by the United Nations, that mining companies and investors began to see Eritrea’s potential.

The Eritrean government created a new mining act designed to promote mining there and has been consistent in its application, Trebilcock said.

The Bisha mine is Eritrea’s only major mine, although other mining companies are now in Eritrea looking to develop new mines, including Vancouver’s Sunridge Gold Corp. (TSX-V:SGC).

“We really were trailblazers,” Trebilcock said. “I think it’s a testament to how Canadian companies can go out and generate value overseas, not just for Canadian shareholders but also for the country we’re in.” •

The truly progressive not only look inwards for inspiration, but also seek out and recognize the achievements that exist around them. Because true progress commands recognition. That’s why we at Audi are honoured to sponsor Business in Vancouver’s Fastest Growing Company awards. The leadership teams at these notable businesses have pushed to excel in the areas of innovation and progress, striving to accomplish ambitious performance goals.

They, too, emulate the mantra of Vorsprung, bringing advancement to new heights. To them, we extend our whole-hearted congratulations.

Nevsun’s pit mine at Harena, a satellite ore deposit a few kilometres from its main operation at Bisha in Eritrea | Nevsun

fastest 100

Top 10 fastest-growing companies 1

NEVSUN RESOURCES LTD.

Precious and base metals mining 2013 revenue: $160.4 million Five-year growth: 40,089% See page B16 for an in-depth analysis of Nevsun’s growth over the past five years.

2

SILVER STANDARD RESOURCES INC.

Silver metal mining 2013 revenue: $185.8 million Five-year growth: 2,890% Revenues at Silver Standard have soared over the past five years after its Pirquitas mine went into production in 2009. In 2013, the Argentina-based mine produced 8.2 million ounces of silver and 27 million pounds of zinc.

The mine has proven mineral reserves of 48.1 million ounces of silver and was Silver Standard’s only functioning operation until April 2014, when it acquired Nevada’s Marigold mine.

Between 2015 and 2018, the Pirquitas mine’s zinc production is expected to dip to 10 million to 12 million pounds annually, but silver production is expected to remain steady at eight million to 10 million ounces annually.

3

3. B2GOLD CORP.

Gold mining

2013 revenue: $578.9 million Five-year growth: 2,356% Gold production at the company’s three operating mines hit a record 105,577 ounces in the fourth quarter of 2013 – a 138% increase compared with the same period a year before. Meanwhile, consolidated gold production at its two facilities in Nicaragua and its one Philippines-based mine hit a record 366,313 ounces for the year.

Despite a 24% drop in average realized gold price, the company saw revenue go up 95% year-overyear. The Vancouver-based miner said that jump was driven mostly by increased production at its Masbate mine in the Philippines.

In 2014, consolidated production at all three mines is projected to increase by 8% to 15% with a total of 395,000 to 420,000 ounces of gold.

4

VERIS GOLD CORP.

Gold mining

2013 revenue: $201.8 million Five-year growth: 1,683% Veris experienced swift growth in 2013 as revenues shot past the $200 million mark from production based out of its only operating gold mine in Nevada. That operation produced 105,626 ounces of gold last year – a 32%

increase compared with 2012.

But a December 2013 electrical fire at the Nevada mine initiated a series of headaches for the company. The mine was beset by unexpected shutdowns after the fire, and the company soon sought bankruptcy protection in both B.C. and the U.S. Veris has cited falling gold prices, higher production costs and demands for payments under loan agreements as contributing factors to its money-flow problems.

5

PURE INDUSTRIAL REAL ESTATE TRUST (PIRET)

Industrial properties owner 2013 revenue: $108.8 million Five-year growth: 1,512% See page B18 for an in-depth analysis of PIRET’s growth over the past five years.

6

ALTERRA POWER CORP.

Alternative power plants 2013 revenue: $67.9 million Five-year growth: 1,415% T he renewable energ y company operates six power plants throughout the world, including B.C.’s largest wind farm and runof-river hydro facility.

After B.C., Iceland is home to the company’s next most valuable asset, a geothermal plant producing 630,000 megawatt hours of energy annually. But in 2013, the Icelandic krona went up as the Canadian dollar dropped compared to the U.S. dollar, causing revenues to fall at the HS Orka operations. Meanwhile, one of the partner companies of the Iceland plant exercised an option to raise its stake in the geothermal facility, dropping Alterra’s stake from 75% to 66%.

7

AVIGILON CORP.

HD surveillance systems developer 2013 revenue: $178.3 million Five-year growth: 956% T he h ig h-tech su r vei l la nce company, which specializes in high-definition cameras, saw its growth cool slightly in 2013 as it dropped from the No. 5 spot to No. 8. But the Vancouver firm was busy with M&A activity last year as it acquired both RedCloud Security and VideoIQ. Avigilon’s revenue grew from $100.2 million in 2012 to $178 million in 2013. Meanwhile, its workforce jumped 78% – from 255 to 455 – compared with the year before.

The company is planning to expand its sales team throughout 2014 – although profits in

the second quarter of this year dipped nearly 18% compared with the same period a year before.

8

ALEXCO RESOURCE CORP.

Silver mining 2013 revenue: $59.4 million Five-year growth: 922% Despite big growth and rising revenue at Alexco over the past five years, the company was hit with net losses of about $50 million in 2013.

The miner attributed the losses to reduced silver production after it shut down its Bellekeno mine.

The company said it was forced to suspend operations at the Yukon mine, which employed about 100 people, after significantly lower silver prices hit the entire market in 2013.

But the miner budgeted $5 million for surface exploration of more potential sites at Bellekeno and other operations in 2014.

9

WESTERNONE INC.

Equipment and infrastructure development 2013 revenue: $377.6 million Five-year growth: 807% This past year was the first time the equipment and infrastructure development firm operated as a corporation since converting from an income trust structure in late 2012.

The company provides infrastructure to industrial clients and expanded its operations into Fort McMurray, Alberta, to pursue oilsands developments.

Furthermore, its Britco construction subsidiary announced four housing contracts in 2013, valued at about $170 million.

Meanwhile, it added 193 aerial lifts and 1,407 construction heaters to its fleet, along with 30 more delivery trucks.

For 2014, the company said it planned to focus on developing its aerial equipment rentals and construction heat and power services.

TAG OIL LTD.

10 Oil and gas production 2013: $44.6 million Five-year growth: 806% The B.C.-based oil and natural gas company has been busy in New Zealand over the past year.

It was awarded exploration opportunities in the country’s Taranaki Basin, located near Tag’s producing oilfield. The company also spent $5 million acquiring a 90% stake in a local energy firm – Opunake Hydro – to help power both its producing oilfield as well as New Zealand’s main electricity grid. •

BUSINESSVANCOUVER September 16–22, 2014

B17

fastest 100

B18 BUSINESSVANCOUVER September 16–22, 2014

Pure vision for growth financial services | Pure

Industrial Real Estate Trust has nearly doubled its market cap in the past year while keeping administrative costs in check

Stephen Evans, co-founder and co-CEO of Pure Industrial Real Estate Trust | Pure Industrial Real Estate Trust

By Frank O’Brien fobrien@biv.com

I

t is perhaps the lessons learned in the 2008 crash that have resulted in Pure Industrial Real Estate Trust (PIRET) (TSX:A AR.UN) being ranked among the top 10 fastest-growing companies in British Columbia this year.

The 600,000-square-foot ContainerWorld distribution centre in Richmond is PIRET’s largest industrial property in Metro Vancouver |

Pure

Industrial Real Estate Trust

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fastest 100 Pure Industrial Real Estate Trust holdings Region

Properties

Leasable space (square feet)

B.C.

14

2.34 million

Alberta

38

2.86 million

Saskatchewan

4

179,346

Manitoba

7

647,621

Ontario

94

7.6 million

New Brunswick

2

111,799

United States

11

1.9 million

Total

172

15.85 million Source: Pure Industrial Real Estate Trust

Pure trajectory

$20M

Market capitalization Sept. 2007

$500M

Market capitalization Jan. 2013

$867M

Market capitalization Aug. 2014

W hen Va nc ouver ite s Stephen Evans and the late Darren Latoski, who died of cancer last year, took PIRET public on the Toronto Stock Exchange in 2007, the company had a $20 million market capitalization, considered small fry among real estate investment trusts (REITs).

“When we started, we structured the company so there was no general and administrative costs, aside from public-company filing costs and accounting costs,” said Evans, company coCEO. “We didn’t want a big overhead to be a drag on the young company.”

Neit her Eva ns nor L atosk i drew a salary for nearly four years, until PIRET had reached

a market capitalization of $200 million. They paid staff from their own pockets, ran the operation from a modest Vancouver office and poured profits back into the company.

Today, PIRET has a cap approaching $900 million – up from $500 million in January 2013 – holds 15.5 million square feet of industrial property across North America and is ranked fifth on BIV’s list of B.C.’s fastest-growing companies for 2013.

Today, the company’s total genera l a nd ad m i n i st rat ive costs still represent just 3.6% of revenues.

The conservative approach to personal remuneration is not reflective of the aggressive acquisitions that have characterized the company’s trajectory.

In 2013, PIRET acquired $603.9 million worth of property, after snapping up $300.3 million in assets a year earlier.

This year, while concentrating on expanding across Canada, buying portfolios and individual buildings from New Brunswick to B.C., PIRET roared into the U.S. market, buying 11 distribution centres for $131 million. The entire 1.9-million-square-foot U.S. portfolio is leased to FedEx Corp., one of the largest courier

companies in the world.

L i ke a l l R E I Ts, PI R ET h as benefited from the historically low interest rates that have been in place since 2008, Evans confirmed, pointing to a deal they did in Montreal as an example of how low borrowing costs come into play.

Interest on that portfolio’s financing was 4%, locked in for 20 years, while the assets are producing a 7.75% capitalization rate that will increase over the 20-year lease agreement signed with the tenant.

“Higher interest rates are the largest cost and the largest risk factor [for REITs],” Evans said.

“But with long-term debt, you can be largely insulated from that risk.”

Across its entire portfolio, PIRET is paying 3.5% in mortgage interest rates but posting an average yield (capitalization rate) of 6.9%.

PIRET will continue to pursue U.S. opportunities, Evans said, but will likely restrict its U.S. exposure to one-fifth of total holdings. “We are and remain a Canadian REIT,” he said.

PIRET is now the largest REIT owner of industrial real estate in Metro Vancouver, holding more than 2.3 million square feet of space in 14 properties, including the largest industrial building in the region, the 630,000-squarefoot ContainerWorld distribution complex in Richmond.

“We have concentrated on the top four industrial markets in Canada, which we believe are Vancouver, Calgary, Edmonton and Toronto,” Evans said.

He said the rapid growth of ecommerce – an Ipsos Reid poll this month showed 82% of Canadians are now shopping online – means that distribution and logistics space will remain PIRET’s primary focus. •

Join us for a fantastic opportunity to meet and mingle with some of BC’s fastest growing companies when Business in Vancouver presents the 2014 Top 100 Fastest Growing Companies event. A networking reception is followed by a panel discussion to hear from some of the leaders behind these companies and learn how they did it.

The Top 100 Fastest Growing Companies list, published in the September 16th issue of BIV, features companies across BC who have shown remarkable growth over the past five years.

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BUSINESSVANCOUVER September 16–22, 2014

B19

Sponsor’s Message

Top 100 demonstrate best strategies for growth Colin Yakashiro, Managing Partner; South Coastal Business Unit On behalf of Grant Thornton LLP, I would like to extend a hearty congratulations to all of the companies named in the Business in Vancouver 2014 Top 100 Fastest Growing Companies Awards.

Not only have they been able to grow through some very difficult economic times, but we’ve also noticed that companies like these can teach us lessons. First, these are companies that actively pursue growth instead of just waiting for it to happen. They also tend to look at growth across all areas of their business, rather than just chasing the bottom line, because they realize that a holistic approach gives the greatest long-term return on investment. Finally, we’ve noticed that truly dynamic companies use the right combination of both reason and instinct to make the kinds of smart business decisions that lead to growth.

It’s a list of which Vancouver can truly be proud. So, not only do we celebrate these companies, but we are also inspired by them!

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For more information, please visit www.grantthornton.ca.

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