Financially-troubled Nunasi Corp. sheds subsidiary in restructuring move
Secure Check sold to Scarlet Security Services
Nunasi Corp. has started the major restructuring announced last year by the financially-strapped Nunavut Inuit birthright corporation.
On Feb. 20, Nunasi said it had sold one of its subsidiaries, Secure Check, to Scarlet Security Services, which specializes in safety, security and screening support for remote mining, ice roads, pipeline and oil and gas projects.
The transaction will close on March 1, with all Secure Check line employees joining Scarlet.
In addition, Scarlet Security operations (as well those of its company Twilite Security Ltd.) will be consolidated at the current Secure Check location within the Nunasi Corp.‘s Yellowknife office.
This “mutually beneficial transaction has also created a new relationship between Scarlet and Nunasi – that of tenant and landlord,” said a Nunasi news release
“The sale of Secure Check is part of Nunasi’s strategy to focus our investment portfolio. Scarlet Security is a northern owned and operated business with many years of experience working in the North. We are pleased to have Scarlet Security as a new tenant in our Yellowknife building,” said Wilfred Wilcox, who chairs the Nunasi board of directors.
Nunasi Corp. was formed in 1976 to participate in business opportunities in what is now Nunavut.
A previously announced shake-up at its board will bring it under the direct control and ownership of Nunavut’s three regional development corporations and Inuit associations.
Wilcox said this past November that some companies now owned by Nunasi would also be dissolved or amalgamated during its financial overhaul.
“The plan is to go through companies and decide if there’s a future there, or if they need to amalgamate or maybe the time has run out on that arrangement,” Wilcox told Nunatsiaq News.
Recently, Nunasi has been financially weakened by losses suffered by the Norterra group of companies, one of its largest subsidiaries.
The Norterra group of companies, owned by the Inuit of Nunavut through Nunasi Corp. and the Inuvialuit of the NWT through the Inuvialuit Development Corp., include firms like Canadian North and NTCL, the shipping company that has been losing contracts in the Baffin and Kivalliq regions for many years.
Many of Nunasi’s own subsidiaries, such as Kitnuna, suffered in 2012.
Kitnuna hoped to make millions from Newmont Mining Corp.‘s Hope Bay gold mine. But the Hope Bay property was put into “care and maintenance” last year and Kitnuna saw its revenues cut.
Wilcox said it’s a priority to restore Nunasi to profitability so the corporation can start handing out dividends worth several hundred thousand dollars a year to regional Inuit organizations.