The Piikani Investment Corporation (“PIC”) was created in part to help assist the Piikani Nation to manage and access funds in the Investment Account; one of several accounts created through the Tripartite settlement agreement between the Piikani Nation, Federal, and Provincial (AB) governments dated July 16, 2002. Under that agreement, the Piikani Investment Corporation Terms of Reference are first defined.
This Investment Account can be used by the Trustee for a limited number of purposes, as set out in the Trust Agreement. It may loan funds to a Piikani Business Entity, or loan funds to the Nation for the purpose of purchasing shares or a controlling interest in a Piikani Business Entity. Piikani Business Entities are defined as those businesses in which the majority interest is held for the benefit of the Nation and are intended to engage in commercial ventures that generate profits for the benefit of the Piikani Nation, or acquire lands to become Piikani Nation lands for the benefit of the Nation.
Specifically, the Trustee may allocate Investment Account funds;
To enable the purchase of Authorized Investments;
To loan funds to a Piikani Business Entity;
To provide guarantees on loans made by a third party to a Piikani Business Entity;
To loan funds to the Piikani Nation for enabling the Piikani Nation to purchase Shares or a Controlling Interest in a specified Piikani Business Entity;
To pay the authorized operating expenses of the Investment Corporation and the Trustee.
The reserve covers more than 430km2 along the banks of the Oldman River.
The Piikani Investment Corporation is responsible for developing (at Chief and Council’s request) the development of and / or approving business plans for Piikani Business Entities. Pursuant to the Trust Agreement, PIC is responsible for preparing and approving any loan agreement or related documents including promissory notes with Piikani Business Entities, or loan guarantee agreements with third party financial institutions.
PIC also has the responsibility, where directed by Chief and Council to:
Hold shares in a Piikani Business Entity and appoint Directors;
Safeguard investments, loans and loan guarantees from the Investment Account by monitoring the management, operations, and financial administration of Piikani Business Entities.
Provide managerial, administrative, and financial services to Piikani Business Entities;
Report to Chief and Council on a quarterly basis on the operation, management, and financial status of Piikani Business Entities;
Provide a written report to Piikani members on the operation and financial status of Piikani Business Entities on an annual basis; and
Undertake other directly related or ancillary tasks as directed by Council from time to time.
Where appropriate, PIC makes recommendations to Chief and Council when funds from the Investment Account / Trust investments should be loaned / utilized as collateral for a loan guarantee to a Piikani Business Entity. Where appropriate and in the interests of the Nation, through a resolution of the Piikani Investment Corporation Board, the Corporation approves investment cases stipulating;
The Business Plan of the designated Piikani Business Entity has been reviewed and approved by the Board; and
The Amount, Terms, and Conditions of the Loan / Loan Guarantee to the Piikani Business Entity
Blessed with an abundance of water, sun, and wind, the Nation is located in the renewable energy heartland of Alberta
The Piikani Investment Corporation assesses each investment request and loan / loan guarantee in an eligible Piikani Business Entity based on the Social and Economic benefits that accrue from such a venture to the Nation, and its Members. Under the terms of the Trust, an Eligible Piikani Business Entity is defined as at least 51% Nation owned and majority controlled. The Corporation cannot approve investments to individuals or companies that are not majority owned and controlled by the Nation.
This investment analysis and assessment is then coupled with the inherent risk associated with the project and probability of success. The Socio-Economic Analysis includes:
Internal Band Demand
Synergy with other Nation Businesses
Growth and Profitability
The Risk Assessment process includes:
Business Plan, Financial Model, Sensitivity analysis
Start-up or Going Concern
Partner Quality & Market Distribution
Competition and Supply Chain exposure
Hazard, Operating, Strategic, and Financial Risk
Investment Evaluation Criteria
The Nation partners with leading companies in developing new commercial opportunities
About The Corporation
The Piikani Investment Corporation is a federally registered Corporation under the Canada Business Corporations Act and is 100% owned by the Piikani Nation. The Corporation is accountable to the Nations’ Chief in their role as the shareholder/trustee representative. The Corporation works closely with Chief and Council and the Piikani Business Entities in assessing potential investment and business opportunities and providing advice when requested on the ongoing operations of these businesses.
The Chief Executive Officer oversees the corporation’s evaluation of business and investment opportunities in areas including:
farming and agriculture
The Corporation in providing business and financial advice and recommendations must remain independent and objective in its operations and decisions. In maintaining independence and objectivity:
the Corporation has no direct interest in any of the proposals or projects it reviews, and the Corporation does not receive any revenue, payments, or commissions from investments. The Corporation’s sole funding is provided independently through the Trust agreement and is not dependent or influenced by the outcome or recommendation of the Corporation’s decision.
under the by-laws, four Directors are to be Nation members, however only one can be on Council.
The board has three non-member Directors, who must meet specific requirements relating to knowledge of finance, law or business.