10162023 BUSINESS

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MONDAY, OCTOBER 16, 2023

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ArawakX ‘Cheap menu offerings’: PI Top investor ‘seriously residents join Wendy’s fight prejudiced’ over

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PARADISE Island resorts and residents are arguing that “cheap menu offerings do not convey” the correct brand image as they unite to oppose Wendy’s bid to obtain planning approvals for its new restaurant.

Condominium associations and individual homeowners have teamed with the location’s major resorts, including Atlantis, Comfort Suites and the Ocean Club, in urging the Town Planning Committee to reject the restaurant franchise’s application at tonight’s public consultation with some even suggesting that Paradise Island should be “rebranded to Hog Island” if the go-ahead is given.

Multiple letters seen by Tribune Business largely regurgitate previous arguments voiced by Atlantis and others as to why developing dual Wendy’s and Marco’s Pizza restaurants at the former Scotiabank branch site should be a non-starter.

They include claims that it will create a down market impression, “damaging future tourism growth”

t )PUFMT DMBJN HP BIFBE XJMM AEBNBHF UPVSJTN HSPXUI t 0UIFST DBMM GPS A)PH *TMBOE SFCSBOE JG HFUT QFSNJTTJPO t 3FTUBVSBOU GSBODIJTF QMFEHFT A8F MM FOIBODF UIF TJUF by being at odds with a destination where visitors pay “thousands of dollars for a vacation in paradise”.

There were also suggestions that granting planning permission will “open the floodgates” to allow other fast-food restaurants to operate on Paradise Island.

However, Gail Lockhart-Charles KC, acting for Psomi Holdings, the entity seeking site plan approval for the Wendy’s and Marco’s Pizza restaurants, told Tribune Business that the developer’s plans “will enhance

BOB unfreezing

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

WENDY’S PI RENDERING the site”. And she pointed that there are already numerous restaurants, including the fast food variety, “in the vicinity” including a Dunkin Donuts that is located in the adjacent shopping plaza along with a web shop and liquor store.

The attorney, in a statement to this newspaper, said: “The upgrades proposed to the existing building will enhance the site. It should be noted that there are a number of restaurants, including fast-food restaurants,

SEE PAGE B8

ArawakX: Wind-up to cause ‘serious harm’ on BOB battle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ first-ever crowd-funding platform will suffer “serious harm” if it is placed into provisional liquidation before it can pursue or settle its legal battle with Bank of The Bahamas over the freezing of its accounts.

D’Arcy Rahming senior, ArawakX’s president, in an October 12, 2023, affidavit alleged that the Securities Commission’s bid to wind-up the company will “undermine” litigation against the BISX-listed bank over the six-month account lock-out that was sparked by a separate fight

D’ARCY RAHMING SNR with its major investor (see other article on Page 1B).

His concerns were voiced as part of a last-ditch, 11th hour legal bid by ArawakX to have the Securities Commission’s winding-up petition thrown out on the

SEE PAGE B11

GB airport operator ‘well ready to move’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama International Airport’s prospective operator has indicated it is “well ready to proceed once given the green light by government”, the island’s Chamber of Commerce chief has revealed.

James Carey, president of the private sector body, told Tribune Business that while Manchester Airport Group representatives provided no specifics they signalled that “everything is in place from their side” when they visited the island last week as

JAMES CAREY part of the UK’s first official trade mission to this nation for 20 years.

Acknowledging that there was “no clarity as such” in terms of timelines and specific plans, he added

SEE PAGE B7

ARAWAKX’S largest investor has moved to intervene in its dispute with Bank of The Bahamas by alleging that the two sides’ agreement to unfreeze the crowd-funding platform’s accounts “seriously prejudices” his interests.

James Campbell, who invested close to $1.6m via a mixture of “capital injection” and loans, is alleging that ArawakX and the BISX-listed commercial bank effectively kept him in the dark over the terms of a Supreme Court “consent Order” issued on May 16, 2023, that restored the crowd-funding platform’s access to accounts it had previously been locked out of for more than six months.

The former Colina Insurance Company president, in an October 11, 2023,

affidavit and accompanying legal documents, is now demanding that this Order be altered or discharged entirely on the grounds that it makes him liable to pay both sides’ legal costs even though he is not named as either a plaintiff or defendant in the litigation between ArawakX and Bank of The Bahamas.

Branding the situation as “perverse, or at the very least unfortunately irregular”, Mr Campbell is asserting that himself and his investment vehicle, PJ Enterprises, are “secured creditors” of ArawakX due to the terms struck over their original $1.34m investment in the crowd-funding platform. This, he is arguing, secured the funding’s repayment via a series of fixed and floating charges over the crowd-fund platform’s revenues and bank accounts.

SEE PAGE B4

PAGE 2, Monday, October 16, 2023

THE TRIBUNE

DEVELOP CYBER SECURITY PLAN TO MEET YOUR NEED AS TECHNOLOGY becomes an essential feature in every business, there is a growing need to ensure its safe use. Companies store crucial data and depend on technology for their day-to-day operations.

With the continuous evolution of cyber threats and stringent regulations, companies need a firm security plan.

However, every firm has unique needs, so more than just a generic solution might be required.

This year marks 20 years of Cyber security Awareness Month, which is celebrated every October.

Cyber security is more than just a buzzword. It is a structure underpinned by governance, risk and compliance (GRC). While most grasp the idea of “compliance”, many overlook the potential financial repercussions for top executives when legal and regulatory challenges arise. This can damage the company’s reputation and lead to financial problems for both the firm and its leaders.

Cyber security compliance and governance are of critical importance to businesses and their executive leaders. This article

explores cyber security compliance and emerging threats in the field, while highlighting steps towards sustainable cyber security compliance.

Cyber security Compliance When discussing cyber security compliance, we refer to a company’s commitment to rules, standards and industry guidelines that are meant to protect data and digital assets.

The specifics vary based on industry type, company size and location. Several cyber security frameworks are widely recognised,

such as ISO 27001 and the NIST Cybersecurity Framework. Both follow a risk-based approach and are considered technology-neutral.

It is frequently believed that compliance can only be achieved through technological means, which places primary responsibility on the chief technology officer (CTO). Conversely, there has been increasing recognition of the human factor’s significant role, and it has also been established that technical solutions alone cannot effectively mitigate security breaches. It is not

enough to add more training to raise awareness of security practices, but to build a culture of creativity, sensitivity and engagement among employees.

Emerging threats and generic plans In today’s digital era, companies face a complex threat landscape that is becoming more sophisticated daily. Several types of attacks target companies, including ransomware; phishing, which tricks persons into sharing sensitive information; advanced persistent threats (APTs); and well-funded, determined attackers.

It is challenging to develop a universal cyber security blueprint due to the diverse IT structures in companies. Relying on a one-size-fits-all plan poses several issues: * Lack of Customisation: The generic plan might not address unique challenges or needs, leaving security gaps * Increased Breach Risks: A generic plan might miss specific security threats for a particular company * Vulnerability Exploitation: Cyber criminals often exploit weaknesses that general plans overlook, leading to significant breaches Steps towards sustainable cyber security compliance * Risk Evaluation: Begin with an all-encompassing risk analysis. Grasp the nature of the data you manage, the systems in play, and the possible consequences of breaches * Formulate Policies: Construct a detailed cyber security blueprint that showcases the standards and best practices. Regular revisions and team training are recommended * Integrate Security Measures: Employ necessary tools and strategies, such as firewalls, encryption

BY

DEREK

SMITH and regular software updates * Ongoing Audits: Continually assess your cyber security efficacy through internal and external checks to identify and rectify any weak points * Partner with Experts: The cyber security realm is intricate. If you lack inhouse expertise, collaborate with professionals In conclusion, cyber security is not merely a trending topic; it is a business necessity. By giving it the attention it deserves, corporate leaders can ensure a safer, more stable future for their firms.

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CHAMBER HAILS SUCCESS FROM TWO TRADE MISSIONS

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman has hailed its hosting of two recent trade missions as a success.

Krystle RutherfordFerguson told Tribune Business that both events generated positive feedback from Bahamian business owners. She said: “After two weeks of intensive collaboration and strategic engagements, the Bahamas Chamber of Commerce and Employers’ Confederation considers its involvement and participation in two business-focused trade missions a success.

“We have received positive feedback from our members and partners to further support our sentiments. Mrs Rutherford-Ferguson said both events - the first-ever UK trade mission to The Bahamas for more than 20 years, and the visit by a group of Jamaican manufacturers - set out to increase trade opportunities and strengthen business relationships.

She said: “These local missions were aimed at fostering greater economic ties, increasing trade levels between our countries and exploring mutuallybeneficial opportunities. It is important to note that

KRYSTLE RUTHERFORD-FERGUSON both missions resulted from partnerships and efforts to foster greater business relations, local partnerships and synergies. We were pleased to see that our efforts were returned with a reciprocal mission to The Bahamas.”

Mrs Rutherford-Ferguson said the UK conducted its first trade mission to The Bahamas in two decades after a series of virtual business events facilitated by the Chamber, while the Jamaica Manufacturers and Exporters Association (JMEA) held a trade mission last week.

She said: “During the first week, the BCCEC welcomed a business delegation from the United Kingdom, the first in more than 20 years. This built on the BCCEC’s collaboration with the Caribbean Council UK and the British High Commission, where we had two successful virtual business-to-business events

SEE PAGE B9

THE TRIBUNE

Monday, October 16, 2023, PAGE 3

ARAWAKX TO LEARN WIND-UP FATE ON NOVEMBER 9

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Chief Justice will decide on November 9 whether The Bahamas’ first-ever crowd funding platform should be placed into provisional liquidation under the Supreme Court’s supervision.

Sir Ian Winder announced the verdict date after a day-long hearing where attorneys representing both the Securities Commission and ArawakX stated their clients’ respective cases for and against the regulator’s

petition to wind-up the latter.

Michael Scott KC, representing the Securities Commission, told Friday’s winding-up petition hearing that there is “no way” ArawakX can repay its main creditor, James Campbell, the $1.27m he is owed because the crowd-funding platform is insolvent. These financial woes, he added, together with the alleged commingling of client funds; corporate governance concerns; and regulatory breaches, is what has prompted the regulator to act.

Mr Scott alleged that besides the sums owed to Mr Campbell, ArawakX has monies outstanding to several other creditors, has failed to pay staff their due salaries and the rent for their offices in Sandy Port, causing the company to be evicted earlier this year. All these reasons, he said, prompted the Securities Commission to move for the appointment of accountant James Gomez as ArawakX’s provisional liquidator.

However, Khalil Parker KC, ArawakX’s attorney, told the Chief Justice that the Securities Commission’s winding-up petition

was over-zealous and premature. He argued that the capital markets regulator failed to give MDollaz, ArawakX’s parent company, sufficient due process and a proper hearing for it to address the concerns raised - something the Securities Commission has refuted.

But Mr Scott said the fact remains that MDollaz still owes Mr Campbell and other creditors more than $2m, and it is impossible for the crowdfunding platform to repay these debts. He argued that ArawakX’s insolvency is clear, and the Securities Commission was within its

authority to move for provisional liquidation to protect investors and the wider Bahamian capital markets.

The Securities Commission, in documents filed to support ArawakX’s winding-up, alleged The Bahamas’ first-ever crowdfunding platform has a solvency deficiency of “at least $2.4m”, while accusing it of “governance irregularities, regulatory breaches and possible criminal infractions”.

It asserted that these woes are sufficiently “insurmountable” to justify ArawakX’s winding-up amid allegations that investor funds were

“commingled” with those belonging to the company; staff had not been paid for “several months”; and capital-raising companies had not received all monies due to them because these were being misused to fund the platform’s operations.

The regulator, in its petition for ArawakX’s winding-up and the appointment of Mr Gomez as provisional liquidator, asserted that the crowdfunding platform “has committed certain breaches under the Securities Industries Act that warrant

SEE PAGE B6

New extension over substance reporting

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net The Ministry of Finance yesterday said it has extended the 2022 substance reporting deadline for qualifying companies until end-October due to the “high volume of requests” for extra time.

The ministry, in a statement, said it had agreed to extend the deadline for companies, their attorneys and registered agents to comply with the Commercial Entities (Substance Requirements) Act, known as CESRA, and filings for 2022. Alleged deficiencies

in commercial substance reporting resulted in The Bahamas being blacklisted by the European Union (EU), and this nation had hoped to escape and be delisted during this month’s review.

“The Ministry of Finance wishes to advise the public that as a result of a high volume of requests from entities for an extension to the reporting deadline for Commercial Entities (Substance Requirements) Act 2023 (CESRA) reporting, after much consideration, it has been decided to allow a further extension to the reporting deadline for the 2022 reporting year,” the Ministry of Finance said.

“The extension is for an additional 18 days from October 13, 2023, to October 31, 2023.” The Commercial Entities (Substance Requirements) Act 2023 came into force on September 1, and the new economic substance reporting portal was launched on September 8.

The law now requires registered agents to report on behalf of the entities they manage, while entities without a registered agent are required to provide the information to the Compliance Commission which will act as the reporting agent to the Competent Authority.

The previous economic substance reporting portal

Stable coins better suited for international customers

By FAY SIMMONS Tribune Business Editor jsimmons@tribunemedia.net A BAHAMIAN attorney says stable coins are a product better-suited for the international, rather than domestic, market as this nation moves to introduce new measures to better regulate the product.

Christel Sands-Feaste, a partner with the Higgs & Johnson law firm, told the D3 Bahamas Web3 and FinTech Conference that the upgraded Digital Assets and Registered Exchanges (DARE) Act will include regulations for stable coins and address many of the risks presented by this and other digital assets.

Pointing to The Bahamas’ demonstrated willingness to regulate digital assets in accordance with global standards, she added that the new DARE Act - expected to be debated and passed by Parliament later this year - will include greater consumer protection and increased disclosure requirements.

Mrs Sands-Feaste said: “The Securities

Commission has announced in its proposed new DARE Bill, which we hope will be passed before the end of the year, that stable coins will be regulated.

“And the draft we saw earlier this year sought to address some of those risks…run risk, consumer protection, disclosure, reserve requirements, high quality assets…reserve requirements, the quality of the assets, only certain categories of assets can be used as reserves, requirements relating to segregating those particular assets, disclosure requirements, stabilisation mechanisms [and] consumer protection.

“I think The Bahamas really demonstrates, number one, a willingness from the policymakers to regulate, and secondly to regulate in accordance with global standards.”

Mrs Sands-Feaste said The Bahamas’ central bankbacked digital currency, the Sand Dollar, is different from stable coins such as Tether.

The former, she added, is merely a digital version of fiat currency that

is supported by the Central Bank, whereas stable coins are backed with fiat reserves. The Higgs & Johnson attorney explained that stable coins are better suited for the international market whereas the Sand Dollar is better-suited to domestic financial users.

She said: “It’s very important to point out that, from a payment perspective, when we talk about stable coins, we are talking about international financial services. We are not talking about the domestic market.

So at the end of the day, this is a crypto currency, so I’m not suggesting that something like this is appropriate in the domestic market.

“Based on certain restrictions we have in place, I think a central bank digital currency is more appropriate for the domestic market, which is the confidence of the regulators that it’s central bank-backed.” Mrs Sands-Feaste said the “entire stable coin ecosystem should be regulated”, and that the DARE Act will apply to issuers

SEE PAGE B6

operated through the Department of Inland Revenue framework and was decommissioned on September 1, 2023. Registered agents were encouraged to report on the new portal and given a two-week extension to comply from September 30 to October 13.

The Bahamas was added to the EU’s list of tax noncooperative jurisdictions in November 2022, citing concerns that the country, which has a zero or only nominal rate of corporate income tax, is attracting profits without real economic activity and that it failed to adequately address a number of

recommendations of the OECD Forum on Harmful Tax Practices (FHTP) in connection with the enforcement of economic substance requirements.

Ryan Pinder KC, the attorney general, subsequently said the Government contracted BDO, the Philippine banking company that developed the beneficial ownership reporting system (BOSS), to build the new economic substance reporting platform.

He said: “As you might know, the former government put the substance reporting through the Department of Inland Revenue framework. This

method was ineffective and presented many problems with the actual administration of the reporting.

“We solicited proposals for a separate substance reporting portal and platform that has been designed for the specific purpose, much like what you experience with the BOSS system and beneficial ownership reporting.

“Our government has retained the firm BDO to develop the reporting platform. BDO is the firm who built our reporting platform for beneficial ownership, the BOSS system. This should instil confidence as the BOSS system has been very effective.”

PAGE 4, Monday, October 16, 2023

THE TRIBUNE

Top ArawakX investor ‘seriously prejudiced’ over BOB unfreezing FROM PAGE B1 Describing the investment as “a capital injection loan”, Mr Campbell said in return PJ Enterprises was issued 1.34m non-voting convertible notes that could be transformed into an equity ownership stake in ArawakX. The original July 12, 2021, deal was then altered on January 10, 2022, to specify that the conversion would give the former Colina chief a 30.63 percent equity stake in the crowdfund platform through being issued 3.063m shares.

In addition, Mr Campbell’s PJ Enterprises was to be “treated as a cofounder of the company” and granted ordinary shares equal to those issued to the other founders, D’Arcy Rahming, ArawakX’s president, and his son, D’Arcy

junior, its chief technology officer.

And PJ Enterprises “would be entitled to appoint 50 percent of the Board” at the crowdfunding platform, with Mr Campbell appointed as director and chairman with a casting vote. Board resolutions to give effect to this were allegedly lodged with the Registrar General’s Department on March 14, 2022, with ArawakX’s articles of association altered to allow “certain overriding provisions” in the company’s corporate governance for Mr Campbell.

The latter also claimed that part of the wide-ranging conditions, in return for his capital investment, “implemented and adopted certain internal control measures governing

the operation of its bank accounts” such that Mr Campbell was authorised as a signatory on all ArawakX’s operational and fiduciary bank accounts - including those held by Bank of The Bahamas.

Further loans were advanced by Mr Campbell to Arawak X which, in turn were secured “by a first charge over all funds received by MDollaz”, the crowd-fund platform’s parent, and a floating charge on all bank accounts.

The interest rate charged on the loan was to be 10 percent per annum.

“In the circumstances, PJ Enterprises is and was, at all material times, a secured creditor of Mdollaz, holding security over its bank accounts held at the bank,” the former Colina chief

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alleged. Within months, though, he and the Rahmings had fallen out, which sparked a battle for control that ultimately resulted in Bank of The Bahamas freezing ArawakX’s bank accounts and their ongoing legal battle.

Mr Campbell’s October 28, 2022, letter to Yvette Johnson, Bank of The Bahamas’ premier banking manager, triggered the freeze by warning that he “intends to take immediate action to enforce this security” over ArawakX’s bank accounts that was granted in return for the loans.

Tara Cooper-Burnside, a Higgs & Johnson attorney, told Ms Johnson her client acted after the Rahmings allegedly sought to revoke Mr Campbell’s appointment as a director, plus his signatory authority on the accounts as well as the corporate governance “overriding provisions”, via Board resolutions passed on October 4-5 last year.

“At this time, the Board of Directors comprised the Rahmings, Hillary Deveaux and Mr Campbell,” Mrs Cooper-Burnside wrote.

“However, Mr Deveaux nor Mr Campbell became aware of the purported resolutions until Mr Campbell’s access on the accounts was revoked....

“We hereby put the bank on notice that the purported resolutions are ultra vires the Articles of Association of each of the companies and are void and without legal effect. On October 20, 2022, Mr Campbell informed the bank that he had been wrongfully removed as a signatory on the account, whereupon an operational hold was implemented upon the accounts to restrict all transfers, payments, cheques or other disposition of the funds.”

ArawakX and the Rahmings temporarily persuaded Bank of The

Bahamas to remove the freeze by producing the disputed October Board resolutions.

However, Mrs Cooper-Burnside’s letter, warning that Bank of The Bahamas would be “exposed” to liability and damage if it did not reinstate the hold, ensured the BISX-listed institution again blocked the accounts - a bar that would remain in place until May 16, 2023.

Mr Campbell, in his recent affidavit, said he holds the position that he need not participate in the battle between ArawakX and the bank. “I note that MDollaz now seeks to challenge the validity of the said directors’ resolutions and the internal controls for financial accounts by its claims advanced in these proceedings vis-a-viz the bank,” he alleged.

“Importantly again, however, MDollaz does not seek to challenge the validity of the secured charges upon its accounts held at the bank, which secure the interest of PJ Enterprises, which was curiously not sought to be joined as a party to this action by the bank or MDollaz.”

However, Mr Campbell argued that the May 16, 2023, consent Order that was signed by Justice Simone Fitzcharles, requiring Bank of The Bahamas to “forthwith restore the claimant’s [ArawakX] access to, and operation of, all of the accounts” that had previously been frozen, will “adversely effect me and my interests” and “significantly prejudice my legitimate personal and contractual rights and interests” as well as those of PJ Enterprises.

The consent Order stipulates that Mr Campbell, “and all persons claiming under, by and through Mr Campbell, shall not continue or subsequently prosecute” any claims against Bank of The Bahamas as set out in “the Higgs and Johnson letter dated October 28, 2022”. Yet he is also to pay the legal costs of both ArawakX and Bank of The Bahamas relating to two previous applications.

“It appears that MDollaz and the bank struck an accord amongst themselves contrary to my interests (and those of PJ Enterprises) and sought the consent Order by their unilateral agreement, without notice to me and without affording me an opportunity to make any representations to the court, and without affording me an opportunity to otherwise oppose the terms of the consent Order sought by their apparent unilateral agreement,” Mr Campbell said.

“The presentation and entry of the Consent Order in these circumstances is manifestly unjust and seriously prejudices my legitimate personal and contractual rights and interests, and those of PJ Enterprises.” The former Colina chief said the consent Order, and its terms, were only provided to him after Higgs & Johnson made a formal written request for them.

And “in what appears to be an unfortunate pattern of willful delay and a wanton disregard for me and my interests, and those of PJ Enterprises”, the hearing record before Justice Fitzcharles was only made available to him on September 14, 2023, some four months later. The reason provided was that Mr Campbell had allegedly not complied with the courts’ civil procedure rules and is not on record as a party to the proceedings.

However, the former Colina chief is seeking to have the consent Order either varied or overturned in its entirety, with the stipulation that he pay both ArawakX’s and Bank of The Bahamas’ legal costs removed. He is arguing that, as it stands, the Order’s terms are “unfair” and “in breach of natural justice and/or otherwise wholly unconscionable” because it was made without him being present and able to make representations.

THE TRIBUNE

NO LOVE FOR SANDALS

By CHRIS ILLING CCO @ ActivTrades Corp

T

he day after the IPO (initial public offering), Birkenstock investors are still not happy. The traditional sandal manufacturer experienced a debacle in its eagerly-awaited share offering in New York.

The Birkenstock share placement raised just under $1.5 bn. About two-thirds of this will go to the main owner, L Catterton, which is linked to the luxury group, LVMH, and its billionaire boss, Bernard Arnault.

Birkenstock ended the past fiscal year with sales of 1.24bn euros and a profit of 187m euros. In the first half of the current fiscal year, which closed at the end of March 2023, Birkenstock increased sales by 18.7 percent to around 644.2m euros. The bottom line was a profit of 40.2m euros, compared to around 73.5m euros a year earlier.

The decline was mainly due to unfavourable exchange rates.

Investors caused the stock to fall almost 13 percent below the issue price on the first day of trading last week. On the second day, the descent continued.

Usually, companies attach importance to finding a price point at which there is a considerable plus at the start of trading. In the case of Birkenstock, this went badly wrong.

Birkenstock had already set the issue price at $46 - rather cautiously in the middle of the previously set range of $44 to $49.

However, even that was too much for investors. The first price on Wednesday was $41, more than 10 percent below the issue price. After that, things got even worse and, at the close of trading, the stock cost almost 12.6 percent less at $40.20.

Birkenstock thus came to a valuation of $7.55bn. In early trading on Friday, the price fell another 5 percent to the $36.50 mark.

The climate for IPOs, especially in the fashion sector, is not the best, especially with economic worries and tighter

consumer budgets. But when chip designer Arm went public four weeks ago, its stock jumped by a fifth, yet it is now currently trading below the high mark.

And, unlike many unprofitable companies whose share prices took off at the IPO, Birkenstock can point to a solid business and operates at a profit.

But, based on the solid performance of the company, investors will keep a close eye on the share price and will wait for the best entry point to enter the market.

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Monday, October 16, 2023, PAGE 5

PAGE 6, Monday, October 16, 2023

THE TRIBUNE

ARAWAKX TO LEARN WIND-UP FATE ON NOVEMBER 9 FROM PAGE B3 criminal penalties” being imposed.

Arguing that the crowdfunding platform has failed to provide satisfactory evidence that it can remedy its solvency deficiency and alleged regulatory breaches, the regulator added that “it is in the public interest - and in the interest if clients and/or investors - that the company be wound-up” and likely placed in a Supreme Courtsupervised liquidation.

“The Commission is satisfied that the company’s insolvency issues, governance irregularities, regulatory breaches and

possible criminal infractions have together become insurmountable, resulting in there being more than sufficient evidence to have the company woundup,” Christina Rolle, the Securities Commission’s executive director, alleged in an affidavit supporting the winding-up petition.

These assertions, though, have been vehemently denied by ArawakX. D’Arcy Rahming, its president, alleged it has “lucrative prospects” rather than a $2.4m solvency deficiency and claimed that the regulator’s attempt to enforce its closure would be “an unreasonable, unlawful and

disproportionate result” that will “damage the markets built” by the platform for the equity financing of small and medium-sized businesses by Bahamians.

Seeking to make the case for why ArawakX should not be subjected to a winding-up Order, he also vehemently refuted the Securities Commission’s allegations that it had committed “governance irregularities, regulatory breaches and possible criminal infractions”.

And, blasting assertions that the crowd-funding platform is also $2m in debt, Mr Rahming countered that there was no evidence “of a single complaint from a

member of the public, client or investor” over its operations and pledged that it would abide by any plan agreed with the Securities Commission to increase its equity capital.

“For the avoidance of doubt, the respondent rejects that it is insolvent in the sum of at least $2.4m,” the ArawakX chief said, seeking to rebut the Securities Commission’s most damaging concerns. “The

and custodians, ensuring all players are monitored.

She added: “There is a need for the entire stable coin ecosystem to be regulated. So we’re not just talking about the issuer of the stable coin, but the exchanges, the custodians and so on. And I think the beauty... of the jurisdiction is that we have one comprehensive piece of legislation that will regulate not just stable coins, [but] exchanges and custodians as well. And so you’re satisfied that all of the key players in the ecosystem are regulated.”

Mrs Sands-Feaste said it is important to ensure stable coin issues are backed by a physical person who can

Fidelity is looking for a passionate, sales-driven, networking professional to fill the role of:

BUSINESS DEVELOPMENT ASSOCIATE Job Summary: The successful candidate is responsible for the solicitation of new business, including the provision of banking products and services to new customers of the bank.

Main Duties and Responsibilities: • • •

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Solicit prospective (new) customers offering banking, deposit, merchant, and credit products Account opening and relationship management for new customers (loan, merchant, credit card and deposit customers) Meeting with assigned or prospective clients seeking: - Banking products (savings accounts, fixed deposits, debit cards, credit cards, cash secured loans, personal loans and lot loans) - Personal Financial Planning - Merchant Services - Retirement Planning Presentations at events, seminars, etc.

Participation in community outreach and branding initiatives and provide follow ups with prospective non-credit clients after inquiries, seminars and other presentations.

Facilitate Personal Financial Planning and Financial Coaching Sessions Participation in the Customer Retention Program and Initiatives

Additionally, the ideal candidate must be someone who: - Can multi-task while maintaining a high level of accuracy - Practices good communication skills - Can assist with sales by making referrals (as per minimum quota) - Has the ability to cross-sell Fidelity’s products and services - Possesses excellent work ethics - Has the ability to stay alert and attentive at all times - Can work evenings and weekends (Saturday) when necessary - Can travel to Family Islands - Is computer literate

Benefits: • • •

Competitive salary with incentives, performance bonuses, and referral fees Pension plan and medical insurance Extensive training and personal development opportunities HUMAN RESOURCES

Friday, October 27th, 2023

Re: Business Development Associate, 51 Frederick Street P.O. Box N-4853 | Nassau | F: 328.1108 careers@fidelitybahamas.com

All applications will be held in strict confidence.

Only short!listed candidates will be contacted.

“The respondent is a company with lucrative financial prospects, with no pending financial claims or complaints against it, and with successful litigation before the Supreme Court against its bankers in the midst of significant settlement discussions. A winding-up Order would be an unreasonable, unlawful and disproportionate result in all the circumstances and damage the markets built by the respondent and its issuers and subscribers.”

and approved, and Stable coins better suited vetted the exchange as well, then think a further level of for international customers Ioversight, perhaps by the

FROM PAGE B3

Are you highly Adaptable, Results Oriented, Able to Work in a High Performance Environment, Energetic, and Competitive?

respondent is not the subject of any financial claims or demands as at the date hereof. The respondent also denies that it has committed breaches under the ‘Securities Industries Act that warrant criminal penalties’.

“The respondent also rejects the suggestion that it has been unable to sufficiently provide reasons and/ or documentation to satisfy the Commission that it can remediate these issues. Even the record before the court herein does not support this conclusion.

meet capital requirements and take responsibility for losses.

She added: “I think it’s also important to note is corporate governance related to the fitness and properness of the issuer; that there is ultimately some physical person behind the issuer who’s accountable, and a regime which regulates and makes sure that the issuer meets the necessary capital requirements and is appropriately vetted.

“And then, finally, the service providers that are related to this, the stable coin ecosystem custodians, being regulated as well as the issuers in The Bahamas as well exchanges. If the issuer is appropriately regulated and has been

exchange, would be more for a ‘four eyes’ principle rather than absolute necessity.

“But that’s not the case everywhere where you have that comprehensive level of regulation at all steps of the way, because the custodian, which is really key to valuation, and then the exchange in terms of redemption, is critical,” Mrs Sands-Feaste continued.

“So I think it really depends on the regulatory framework, and where the issue is based, that will really determine whether or not there should be some oversight. If there’s not appropriate oversight on all of the relevant parts of the ecosystem, it goes to credibility, it goes to investor protection, it goes to confidence in my view.”

THE TRIBUNE

Monday, October 16, 2023, PAGE 7

GB airport operator ‘well ready to move’ FROM PAGE B1 that officials from the management partner for Grand Bahama International Airport’s $200m transformation were “scheduled after they left here to have a meeting with the Prime Minister” last week on the project.

“I spoke to him personally, and they are well-ready and well-positioned to proceed once they get the green light from the Government,” Mr Carey told this newspaper of his discussions. “There’s still some things to be announced.”

The GB Chamber president said he gleaned that construction of a berm, and other defences to protect a future airport against Hurricane Dorian-type storm surges and flooding, plus other environmental-related impacts have already been agreed upon.

“He was very upbeat about the process and, or course, the anticipation to get the project going,” Mr Carey added of the Manchester Airport Group representative. “His indication was that everything was in place from their side and its just a matter of getting everything moving.”

Chester Cooper, deputy prime minister, and also minister of tourism, investments and aviation, in unveiling the airport deal at this year’s Grand Bahama Business Outlook pledged that “preliminary work”

would begin back in March but there has been little sign of tangible progress to-date.

Bahamas Hot Mix (BHM); its chairman, Anthony Myers; and CFAL president, Anthony Ferguson, are all members of the Bahamian investor group that will spearhead what was billed as a complete overhaul of Grand Bahama International Airport. They are joined in Aerodrome Ltd by two fellow Bahamians - Anthony Farrington, an engineer; and Greg Stuart, a businessman.

BHM’s involvement in the project is through its UK-based international arm, BHM Construction International. The group teamed with Manchester Airport Group as its operating partner, with financing for the project being provided by UK Export Finance, a British government body that provides credit guarantees and helps to arrange funding for that nation’s exporters.

Several sources have suggested that financing issues are responsible for the delay, as the Government was hoping to structure what could be up to a $400m facility that helps to finance other airport improvements such that the debt remains off its balance sheet and does not further add to the $11.6bn national debt.

However, Mr Carey continued: “It’s very positive

from the indications that we have received. No details, but we’re all very aware that we are three years out from an election and, as things go in The Bahamas, I feel by the time 2026 comes around there will be substantial things that will have happened. It’s key, when you put the political spin on it.

“He [Manchester Airport Group] said everything is in place from their side.

They’re very positive about the project and are looking forward to getting it done.

They indicated there will be a lot of pride in the final product. The final product is not their decision, but there will be a lot of pride regardless of what that product is.

It will be world-class.”

Mr Carey added that Grand Bahama needed to support the airport’s redevelopment by overhauling its tourism product, and expanding its hotel room inventory, to attract increased visitor numbers and airlift. “Grand Bahama is still in a relatively depressed state, and I’m sure the Government is considering what airport will be ideal for Freeport for the next 20 to 30 years,” he told Tribune Business.

“Are we going to have the utilisation with passengers and aircraft coming in? We need more quality hotel rooms because a lot of properties are not in their best state. We also have the Grand Lucayan. The Weller Group has also been waiting with some anticipation to see how the airport evolves as this will be key to their project as well.”

Speaking to reporters in Nassau after arriving as part of the UK trade mission, Andy Tyler Smith, director at Manchester Airport Group, said it was working with the Davis administration to develop a schedule and timeline for how the project will proceed.

He explained: “We’re working very closely with the Government on leveraging the airline relationships that we have, and working with them to provide a form of service to The Bahamas.

The timeline for the airport really is a piece of work that we’re undertaking now. So, we’re working very closely with the Government to

move that along as quick as we can.”

Mr Smith said the group operates the largest cargo hub in the UK with its airports fielding 440,000 tons of goods and 60 million passengers annually. He added: “We’re the largest airport group in the UK. So we’re transporting around about 60m passengers currently. We have a huge cargo operation. We undertake 440,000 tons of cargo through our East Midlands airport.

“We’re the largest dedicated cargo hub in the UK, and I think those relationships, certainly with the likes our customers that we

have there, UPS, FedEx, etc, it will be great to be able to work with them in The Bahamas.”

Mr Smith said that Manchester Airport Group can make a “huge difference” for Grand Bahama. “[We want] to build the relationships with people locally.

It’s going to be really, really important just to get a real understanding of how we can bring a benefit to the island,” he added. “I’m really excited to go back there because I think Manchester Airport Group can make a huge difference to the island.”

Are YOU Dependable, Highly Organized, a Multi!Tasker, Able to Give Attention to Detail?

If you possess these qualities, we invite you to apply for the position of:

CUSTOMER SERVICE CLERK Job Summary: Fidelity Bank (Bahamas) Limited is seeking proficient, service-oriented, Customer Service Clerks (Tellers and Clerical Assistants) to join our team to perform banking transactions and support services for our customers. The position also entails sundry duties, document scanning, and cross training opportunities.

This position requires a great attitude, professionalism, an outgoing personality, with a high degree of precision and competence.

Main Duties and Responsibilities: • • • • • • • •

Can multi-task while maintaining a high level of accuracy Practices good communication skills Can assist with sales by making referrals (as per minimum quota) Has the ability to cross-sell Fidelity’s products and services Possesses excellent work ethics Has the ability to stay alert and attentive at all times Can work shifts, evenings and weekends (Saturday) Is computer literate

Benefits: • • •

Competitive salary with incentives, performance bonuses, and referral fees Pension plan and medical insurance Extensive training and personal development opportunities

All applications will be held in strict confidence.

Only short!listed candidates will be contacted.

HUMAN RESOURCES

Friday, October 27th, 2023

Re: Customer Service Clerk, 51 Frederick Street P.O. Box N-4853 | Nassau | F: 328.1108 careers@fidelitybahamas.com

PAGE 8, Monday, October 16, 2023

THE TRIBUNE

‘CHEAP MENU OFFERINGS’: PI RESIDENTS JOIN WENDY’S FIGHT FROM PAGE B1 that are currently operating in the vicinity of the site.

People familiar with the site of the former Scotiabank building will know that it is located in a plaza in a busy commercial section of Paradise Island.

“Other establishments in that plaza include a Dunkin Donuts, a convenience store, a web shop and a liquor store, to name a few.

The renovations proposed include outdoor seating and modification to the existing structure. The development of the site as a restaurant will enhance the diverse range of dining options to meet local needs. All setbacks will be observed and there will be no drive through.”

Confirming that her client, thought to be an affiliate of Aetos Holdings, the Wendy’s and Marco’s Pizza Bahamian franchisee, is seeking the necessary site plan approval for its project in accordance with the Planning and Subdivision Act 2010, Mrs LockhartCharles added: “There are no restrictive covenants in the title deeds that prohibit the development of the site in the manner proposed.

“Our client’s brands, Wendy’s and Marco’s Pizza, share a common goal in wanting to provide hot quality food using the best ingredients and served with excellent service. Their success is the result of doing things the right way. Wendy’s has demonstrated an unwavering commitment to serve fresh food, at a fair price, in a comfortable atmosphere.....

“Two beautiful and modern restaurants are in the works that will make everyone proud on Paradise Island, providing a

place where guests can get quality hamburgers made from fresh beef at Wendy’s and enjoy quality pizza from Marco’s Pizza.”

Paradise Island resorts, though, remain resolutely opposed to any kind of approval being given. And they have now been joined by several residents and homeowners associations, who are voicing similar concerns to those aired by the hotel industry.

One e-mail to the Department of Physical Planning, whose address identified the sender as “Syche McDonald”, said: “Paradise Island and fast food do not go together.

In developing this country, we must learn how to zone properly. If the decision is agreed upon, then rebrand this island to Hog Island as it will immediately lose its luxury appeal. Tell Psomi Holdings: No!” The Casa Del Sol Condominium Association, located on Paradise Island’s Harbour Drive, the same road as the proposed Wendy’s and Marco’s Pizza restaurants, told Charles Zonicle, the Department of Physical Planning’s director, in an October 6, 2023, letter that it wanted to “register our objection to the proposed commercial development of a fast food restaurant in the building formerly occupied by Scotiabank on Paradise Island”.

And another resident, Suzanne Bryce, wrote: “I have lived on Paradise Island for more than 20 years and I am Bahamian.

In those 20 years I have never missed Wendy’s being prominent on Paradise Island. If my daughter wanted Wendy’s we would get in the car and drive there. We would patronise places like Green Parrot,

the News Cafe (now closed), Ziogigis (now closed) and Anthony’s to name a few.

“We would also walk to Atlantis and buy pizza and sit out by the boats and shop in the Marina Village.

Most of these restaurants are Bahamian-owned. Staff making 15 percent gratuities and their pay. I do not feel Wendy’s is the right fit for this building; perhaps a lovely roof-top restaurant with beautiful Bahamian art is very prominent....

“Wendy’s is but a fiveminute drive away, and if tourists are the main reason for this location I think it does a disservice. The first thing to see is a Wendy’s?

We as a country need to promote our food and our culture... And, lastly. do you want a tourist to buy a $10 meal or do you want them to spend money at a restaurant with gratuity?”

Vaughn Roberts, Atlantis’ senior vice-president of government affairs and special projects, could not be reached for comment

by Tribune Business before press time, but its stance on the Wendy’s and Marco’s Pizza project is unlikely to have altered given that it is among the resort properties named as “strongly opposing” the development in a letter from Glen Haddad, the Paradise Island Tourism Development Association’s (PITDA) executive vice-president.

Mr Haddad, in an October 13, 2023, missive on PITDA’s behalf, said: “Paradise Island represents carefree days, relaxing white sand beaches, warm turquoise-blue water, natural attractions, oneof-a-kind amenities, world-class resorts and hotels, and celebrity chef restaurants. Ours is an

extremely successful formula that employs many thousands of Bahamians.

“Paradise Island is not about fast-food restaurants and cheap menu offerings, and these two brands do not convey what our island truly is... Paradise. If the development of these two restaurants is allowed, then it will open the floodgates to other fast-food restaurants opening on Paradise Island, thus damaging the overall Paradise Island brand, future tourism growth and local food vendors.”

Mr Haddad continued: “In addition, when visitors arrive on to Paradise Island, one of the first things they’ll see is these fast-food locations with windows draped in advertisements for cheap hamburgers and pizza. Not exactly what someone who’s paid thousands of dollars for a vacation in paradise would want to see as they arrive on to the island.

“This is not to mention the likely impact on the already overwhelming ongoing traffic issues and parking shortages, which will no doubt end up further backing up traffic at the exit bridge at peak hours. Any development that damages the Paradise Island brand ultimately harms the thousands of families that are supported by our members. Again, PITDA strongly opposes these, or any, fast-food restaurant chains opening on Paradise Island.”

Besides Atlantis, the other resorts said to be opposing the project include Bay View Suites Paradise Island; Comfort Suites Paradise Island; Paradise Island Beach Club; The Ocean Club, A Four Seasons Resort; Paradise Landing (the former

Hurricane Hole); and Ocean Club Estates.

And Jermaine Wright, Comfort Suites’ general manager, wrote in a separate letter: “Comfort Suites Paradise Island strongly objects to the conversion of the former Scotiabank building to Wendy’s and Marco’s Pizza fast food restaurants. It is indeed our position that the tranquil, exclusive resort haven of Paradise Island will be negatively impacted by additional fast-food outlets.

“Principle areas of concern include the expected congestion and parking problem anticipated with the opening of two new fast-food restaurants. There are significant parking concerns now, even with the closure of the Scotiabank Paradise Island branch.

“This situation will increase substantially with the addition of the proposed facility. In addition, there may be possible environmental concerns, namely the disposal of grease and the increased presence of rodents that is synonymous with such food and beverage outlets.”

Psomi Holdings is seeking to redevelop the former Scotiabank branch into a combined 175-seat Wendy’s and Marco’s Pizza eatery, via a project that will create between 75 to 100 construction and full-time jobs if approved. Aetos Holdings could also invest up to $3m in the site’s redevelopment, including all the necessary restaurant equipment to outfit the location.

This newspaper was previously informed that Atlantis and some of the others seeking to now bar Aetos Holdings have little cause for complaint. Atlantis, which was said to have been approached first by

Scotiabank as a potential purchaser, did not act despite possessing - and knowing of - the fact that there were no restrictive covenants on that location.

Well-placed contacts, speaking on condition of anonymity, also disclosed that Sterling Global, the Hurricane Hole developer and another objector, actually did make an offer to acquire the former bank branch but it did not come close to meeting Scotiabank’s valuation. That valuation is said to have been close to $3m.

And, revealing some of its plans online, Aetos Holdings said: “There is adequate space for parking, with 19 spots on the property, and directly across from our property is the paid parking lot. It is also conveniently located across the street from Marina Village and next to Dunkin’ Donuts. The building will feature large floor to ceiling hurricane impact doors and windows to allow natural light to come into the dining room on both levels.

“On the inside ground floor there is seating capacity for 56 guests, plus an additional 44 seats on the covered outdoor seating area on this level. Additionally, on the second level there is indoor seating for 40 guests plus an additional 32 seats on the covered outside dining area. This gives combined seating of up to 172 persons on both levels.”

ADVERTISE TODAY! CALL THE TRIBUNE TODAY @ 502-2394

THE TRIBUNE

Monday, October 16, 2023, PAGE 9

CHAMBER HAILS SUCCESS FROM TWO TRADE MISSIONS FROM PAGE B2 earlier in the year and an in-person visit to London on investments and doing business in The Bahamas.

“The second trade mission welcomed a business delegation from Jamaica,

which built on a fact-finding mission earlier in the year.” Mrs RutherfordFerguson explained that both trade missions yielded networking opportunities and meetings focused on renewable energy, financial

services, construction and manufacturing.

She said: “Delegates from the UK and Jamaica engaged in constructive dialogue with Bahamian businesses through B2B (business-to-business) meetings where they

discussed trade, investment prospects and market trends. Meetings focused on sector specific areas such as renewable energy, financial services, construction and manufacturing.

“The mission facilitated extensive networking

opportunities.

Business leaders, entrepreneurs and government officials had a chance to interact, establish connections and explore avenues for joint ventures.”

Mrs Rutherford-Ferguson added that the Chamber will be hosting

CALL 502-2394 TO ADVERTISE TODAY! !A' A "

a local trade show next month and is “pleased to partner” with stakeholders to explore opportunities for the business community.

She said: “The BCCEC continues to provide opportunities for our members and the wider business community and, on November 4, 2023, we will be hosting a local trade show, along with other exciting events later in the year.

“The BCCEC was also pleased to partner with other stakeholders such as the Bahamas Trade Commission, the Small Business Development Centre and the Bahamas Financial Services Board.”

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PAGE 10, Monday, October 16, 2023 CALIFORNIA Gov. Gavin Newsom speaks during an interview with Politico in Sacramento, Calif., Sept. 12, 2023. On Friday, Oct. 13, 2023, Newsom announced he signed a law that will increase the minimum wage for health care workers in the state.

Photo:Rich Pedroncelli/AP

THE TRIBUNE

California Gov. Newsom signs law to slowly raise health care workers’ minimum wage to $25 per hour

By ADAM BEAM Associated Press CALIFORNIA will raise the minimum wage for health care workers to $25 per hour over the next decade under a new law Democratic Gov. Gavin Newsom signed Friday.

The new law is the second minimum wage increase Newsom has signed. Last month, he signed a law raising the minimum wage for fast food workers to $20 per hour.

Both wage increases are the result of years of lobbying by labor unions, which have significant sway in the state's Democratic-dominated Legislature.

"Californians saw the courage and commitment of healthcare workers during the pandemic, and now that same fearlessness and commitment to patients is responsible for a historic investment in the workers who make our healthcare system strong and accessible to all," said Tia Orr, executive director of the Service Employees International Union California.

The wage increase for health care workers reflects a carefully crafted compromise in the final days of the legislative session between

the health care industry and labor unions to avoid some expensive ballot initiative campaigns.

Several city councils in California had already passed local laws to raise the minimum wage for health care workers. The health care industry then qualified referendums asking voters to block those increases.

Labor unions responded by qualifying a ballot initiative in Los Angeles that would limit the maximum salaries for hospital executives.

The law Newsom signed Friday would preempt those local minimum wage increases.

It was somewhat unexpected for Newsom to sign the law. His administration had expressed concerns about the bill previously because of how it would impact the state's struggling budget.

California's Medicaid program is a major source of revenue for many hospitals. The Newsom administration had warned the wage increase would have caused the state to increase its Medicaid payments to hospitals by billions of dollars.

Labor unions say raising the wages of health care workers will allow some to

leave the state's Medicaid program, plus other government support programs that pay for food and other expenses.

A study by the University of California-Berkely Labor Center found almost half of low-wage health care workers and their families use these publicly funded programs. Researchers predicted those savings would offset the costs to the state.

The $25 minimum wage had been a point of negotiations between Kaiser Permanente and labor unions representing about 75,000 workers. Those workers went on strike for three days last week. Both sides announced a tentative deal Friday.

The strike came in a year when there have been work stoppages within multiple industries, including transportation, entertainment and hospitality. The health care industry has been confronted with burnout from heavy workloads, a problem greatly exacerbated by the COVID-19 pandemic.

THE TRIBUNE

Monday, October 16, 2023, PAGE 11

ArawakX: Wind-up to cause ‘serious harm’ on BOB battle FROM PAGE ONE basis of legal technicalities.

Filed just one day before Friday’s winding-up petition hearing before Chief Justice Sir Ian Winder, the strike-out application called on the Supreme Court to throw the matter out because the action and supporting documents were “unsealed” when served on the platform.

ArawakX is now urging that the winding-up petition “be struck out” on this basis, and because it was “filed and served.... unreasonably, unlawfully and ultra vires” the Supreme Court Act. It is also seeking dismissal on the grounds that the Securities Commission’s action is “oppressive, irregular, nullities and/or otherwise constitutes an abuse of the process of the court”.

Tribune Business understands that while initial service on ArawakX was indeed “unsealed”, this was the fault of the Supreme Court registry rather than the Securities Commission or its attorneys. And this issue was subsequently resolved by having the legal papers reserved properly with the Supreme Court seal on them.

Mr Rahming’s affidavit, meanwhile, sought to challenge the appointment of James Gomez, the Ecovis Bahamas accountant and partner, as ArawakX’s provisional liquidator if the winding-up petition proves successful when Sir Ian delivers his ruling on November 9, 2023 (see report on Page 3B).

The ArawakX sought to imply that Mr Gomez had several potential conflicts of interest should he take on the ArawakX assignment, although these seemed a slight stretch.

Several revolved around Mr Gomez’s chairmanship of Bahamas Resolve, the bail-out vehicle that helped rescue Bank of The Bahamas by taking on its toxic commercial mortgage loans in 2014 and 2018.

The crowd-fund platform, of course, is now litigating against the latter.

Also cited were Mr Gomez’s and Bahamas Resolve’s alleged ties to Simon Wilson, the Ministry

of Finance’s financial secretary, who ArawakX was dealing with in trying to develop a proposal for the creation of a Government Retail Savings Bond that would be listed and issued via the crowd-funding platform.

Besides maintaining that Mr Gomez would be “wholly unsuitable” as provisional liquidator, Mr Rahming reiterated: “There is no reasonable or lawful basis for the appointment of a provisional liquidator...

The respondent [ArawakX] has remained available to the applicant [Securities Commission] throughout its investigation, and the applicant has failed to articulate any concerns to the respondent about misconduct or mismanagement on its part.”

Mr Rahming said concerns over ArawakX’s corporate returns “are all soluble” after the crowdfunding platform switched corporate services providers. “We believe the request for a provisional liquidator at this early stage is designed and intended to undermine the respondent’s ability to defend itself against the applicant’s unreasonable and unlawful actions herein,” he alleged.

“We are also presently engaged in sensitive and critical litigation and negotiations with Bank of The Bahamas, and the appointment of a provisional liquidator would not only undermine our ability to defend this action but would do serious harm to our negotiations with Bank of The Bahamas.”

Mr Rahming, in a subsequent interview with Tribune Business, said ArawakX’s case against Bank of The Bahamas is due to come up for hearing before the Supreme Court later this month and before the Chief Justice renders his decision on the winding-up.

“We know we’re the wronged party,” he added.

“We have been severely damaged as a result of it, and are eager to present our case in the court. We have every confidence in the legal system and the judicial process.”

In its statement of claim against Bank of

The Bahamas, the crowdfunding platform and its parent, MDollaz, said it first learned of a problem with its accounts when Tianna Gomez, a client relationship officer, informed ArawakX’s vice-president of clearing, Ken Donathan, on October 24, 2022, that it was unable to process a $48,900 payment to Foot and Ankle International.

This represented a payment of investor monies to Dr Daniel Johnson’s business, Footcare RX, which had been raised from a crowd-funding issue via ArawakX. The latter alleged that it was then informed by Yvette Johnson, Bank of The Bahamas’ manager of premier and private banking, that its accounts were frozen following a meeting with James Campbell, its largest investor, who had injected some $1.6m into it.

“The bank was visited yesterday (October 20, 2022) by Mr James Campbell, who provided an amendment to the

Memorandum and Articles of Association which introduced new articles specific to overriding provisions for the captioned company,” Ms Johnson allegedly wrote. “In light of the above, effective immediately all accounts have been placed on hold and actively ceased as a result of the untenable position the bank is presented with.”

Other legal documents allege that a new Memorandum and Articles of Association for ArawakX were drawn up to facilitate Mr Campbell, as its largest investor, becoming a director with an option to convert his $1.3m into a 22 percent equity stake. However, the Rahmings have alleged these were never ratified, and they subsequently move to unwind them amid a battle for control of the crowd-funding platform with the former Colina Insurance Company president.

ArawakX is now seeking damages from Bank of The Bahamas for breach of

NOTICE In the Estate of WILBERT SOLOMON DEAL late of the Settlement of Palmetto Point in the Island of Eleuthera one of the Islands of the Commonwealth of The Bahamas, deceased.

NOTICE IS HEREBY GIVEN that all persons having any claim against the above named Estate are required on or before the 3rd day of November, 2023 to send their names and addresses and particulars of their debts or claims to the undersigned and if so required by notice in writing from the undersigned to come in and prove such debts and claims or in default thereof they will be excluded from the benefits of any distributions made before such debts are proved AND all persons indebted to the said Estate are asked to pay their respective debts to the undersigned.

HAILSHAMS LEGAL ASSOCIATES Counsel and Attorneys at Law RENALDO HOUSE 10 Queen’s Highway Palmetto Point, Eleuthera, Bahamas P. O. Box SS 5062, Nassau, Bahamas Attorneys for the Administratrix of the above Estate Tel: 242-332-0470 email: hailshams@1stcounsel.com

contract, injury to its credit and reputation and alleged “unlawful interference” with its business relationships, plus aggravated damages. No dollar figure, though, is specified in the statement of claim.

Documents viewed by Tribune Business reveal that ArawakX contacted all of Prime Minister Philip Davis KC; Michael Halkitis, minister of economic affairs; and Central Bank governor, John Rolle, in early November 2022 in an attempt to pressure Bank of The Bahamas to unfreeze its accounts.

Mr Rahming wrote to both the Prime Minister and Mr Halkitis, given that Bank of The Bahamas is majority governmentowned, via an e-mail headlined: ‘Urgent: Injustice in financial markets to small investors’.

“Please find attached a letter regarding a grave injustice being done to investors in the country by the Bank of The Bahamas that needs your urgent

intervention,” Mr Rahming wrote to Mr Davis and Mr Halkitis.

Then-Bank of The Bahamas managing director, Kenrick Brathwaite, was left distinctly unimpressed.

“It is unfortunate that you have chosen to communicate in this manner considering that you are fully aware of the total circumstances which have caused this bank to place a freeze on your account,” he told Mr Rahming in a November 2, 2022, e-mail.

“The situation that caused this ongoing apparent conflict within the company is as a result of decisions made by the principals and may result in unnecessary exposure to Bank of The Bahamas.

Incidentally, the captioned referring to any injustice appears a bit disingenuous when we consider the cause of this conflict and the fact that our duty is to mitigate any possible exposure as a result of this ongoing internal conflict.”

NOTICE IN THE ESTATE OF ROSENA THOMPSON STRACHAN., late of the settlement of Deep Creek in the Southern District of the Island of Eleuthera, in the Commonwealth of the Bahamas. Deceased.

NOTICE is hereby given that all persons having any claims against the above-named Estate are required, on or before the 30th day of November, A.D. 2023 to send their names and addresses, and particulars of their debts or claims, to the undersigned, and if so required by notice in writing from the undersigned, to come in and prove such debts or claims, or in default thereof they will be excluded from the benefit of any distribution AND all persons indebted to the said Estate are asked to pay their respective debts to the undersigned at once.

AND NOTICE is hereby also given that at the expiration of the mentioned above, the assets of the late ROSENA THOMPSON STRACHAN will be distributed among the persons entitled thereto having regard only to the claims of which the Executor shall then have had notice.

AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned.

Dated this 1£th day of October, A.D., 2023. c/o PYFROM & CO Attorneys for the Executor, No.259 Shirley Street, P.O. Box N 8958, Nassau, N.P., Bahamas

THE TRIBUNE

Monday, October 16, 2023, PAGE 13

DRUG USED IN DIABETES TREATMENT MOUNJARO HELPED DIETERS SHED 60 POUNDS, STUDY FINDS

By JONEL ALECCIA AP Health Writer THE medicine in the diabetes drug Mounjaro helped people with obesity or who are overweight lose at least a quarter of their body weight, or about 60 pounds on average, when combined with intensive diet and exercise, a new study shows.

By comparison, a group of people who also dieted and exercised, but then received dummy shots, lost weight initially but then regained some, researchers reported Sunday in the journal Nature Medicine.

“This study says that if you lose weight before you start the drug, you can then add a lot more weight loss after,” said Dr. Thomas Wadden, a University of Pennsylvania obesity researcher and psychology professor who led the study.

The results, which were also presented Sunday at a medical conference, confirm that the drug made

by Eli Lilly & Co. has the potential to be one of the most powerful medical treatments for obesity to date, outside experts said.

“Any way you slice it, it’s a quarter of your total body weight,” said Dr. Caroline Apovian, who treats obesity at Brigham and Women’s Hospital and wasn’t involved in the study.

The injected drug, tirzepatide, was approved in the U.S. in May 2022 to treat diabetes. Sold as Mounjaro, it has been used “off-label” to treat obesity, joining a frenzy of demand for diabetes and weightloss medications including Ozempic and Wegovy, made by Novo Nordisk.

All the drugs, which carry retail price tags of $900 a month or more, have been in shortage for months.

Tirzepatide targets two hormones that kick in after people eat to regulate appetite and the feeling of fullness communicated between the gut and the brain. Semaglutide, the drug used in Ozempic and Wegovy, targets one of those hormones.

The new study, which was funded by Eli Lilly, enrolled about 800 people who had obesity or were overweight with a weight-related health complication — but not diabetes. On average, study participants weighed about 241 pounds (109.5 kilograms) to start and had a body-mass index — a common measure of obesity — of about 38.

After three months of intensive diet and exercise, more than 200 participants left the trial, either because they failed to lose enough weight or for other reasons.

The remaining nearly 600 people were randomized to receive tirzepatide or a placebo via weekly injections for about 16 months. Nearly 500 people completed the study.

Participants in both groups lost about 7% of their body weight, or almost 17 pounds (8 kilograms), during the diet-and-exercise phase. Those who received the drug went on to lose an additional 18.4% of initial body weight, or about 44 pounds (20 kilograms) more, on average. Those who received the dummy shots regained about 2.5% of their initial weight, or 6 pounds (2.7 kilograms).

Overall, about 88% of those taking tirzepatide lost 5% or more of their body weight during the trial, compared with almost 17% of those taking placebo.

Nearly 29% of those taking the drug lost at least a quarter of their body weight, compared with just over 1% of those taking placebo.

That’s higher than the results for semaglutide and similar to the results seen with bariatric surgery, said Apovian.

“We’re doing a medical gastric bypass,” she said.

Side effects including nausea, diarrhea and constipation were reported more frequently in people taking the drug than those taking the placebo. They were mostly mild to moderate and occurred primarily as the dose of the drug was escalated, the study found.

More than 10% of those taking the drug discontinued the study because of side effects, compared with about 2% of those on placebo.

Lilly is expected to publish the results soon of another study that the firm says shows similar high rates of weight loss.

The U.S. Food and Drug Administration has granted the company a fast-track review of the drug to treat obesity, which Eli Lilly may sell under a different brand name. A decision is expected by the end of the year.

EXECUTIVE WHO HAD BUSINESS TIES TO PLAYGIRL MAGAZINE PLEADS GUILTY TO $250M FRAUD AT LENDING COMPANY MIAMI Associated Press A FLORIDA executive whose family business once owned Playgirl magazine has pleaded guilty to conspiracy to commit securities fraud for misleading investors in another of his companies — one that made high-interest loans to small businesses.

Carl R. Ruderman, 82, was chairman and chief executive officer of 1 Global Capital LLC, a commercial lending company that filed for bankruptcy in July 2018.

Federal authorities said he took part in a $250 million scheme that affected more than 3,400 investors in 42 states.

Ruderman pleaded guilty Thursday in federal court in Miami. Court records show sentencing is set for Jan. 3, and he faces up to five years in prison and forfeiture of more than $250 million.

Ruderman admitted spending 1 Global investors' money on credit card payments, vacation travel, drivers, nannies, housekeepers, tuition, mortgage payments, luxury car payments and insurance payments for his art

collection and jewelry, the Justice Department said in a news release Friday Ruderman also admitted diverting investors' money to businesses benefitting him and his family, without investors' knowledge, the department said.

The company — based in Hallandale Beach, Florida — made loans to small businesses, called merchant cash advance loans. Prosecutors compared those to payday loans.

The Justice Department said Ruderman admitted he and others made false representations to investors and potential investors about the profitability of 1 Global.

Investors were falsely told the company had been audited by a public accounting firm, that investors' money would be spent on the merchant cash advance loans, and that people could expect double-digit returns on investments.

The Securities and Exchange Commission said in a 2018 complaint against Ruderman and 1 Global that the company collected money from investors, many of whom used retirement savings, from February 2014 to July 2018.

A SIGN for Eli Lilly & Co. stands outside their corporate headquarters in Indianapolis on April 26, 2017. A new study finds that the medicine in the diabetes drug Mounjaro helped people with obesity or who are overweight lose at least a quarter of their body weight.

Photo:Darron Cummings/AP