Pan Global Corp. (PGLO) to Acquire 5.7MW Small-Hydro Plant in India
Pan Global Corp. (PGLO), a company that pursues global investment opportunities in green energy technology and energy assets, said in a news release today via its wholly owned subsidiary, Pan Asia Infratech Corp., that it has entered into a definitive stock purchase agreement to acquire 100 percent of the outstanding shares and convertible debt (if not previously converted) of Regency Yamuna Energy Limited (RYEL). RYEL is a privately held Indian corporation which is commissioning a 5.7 MW small-hydro project in northern India. This project is expected to be 95 percent complete, with commercial operations expected to begin in Q4 2013.
“We are excited to have reached another step in developing our business. Execution of this definitive agreement stems from our commitment to establish ourselves in the green economy,” PGLO management stated in the news release. “We believe our capital structure, combined with current and potentially new investors and our professional team, provides us with the tools to complete this acquisition and share the benefits with our stockholders for years to come.”
Among others, the terms of the agreement between Pan Asia Infratech and Arun Sharma, director and majority stockholder of RYEL, include:
– The parties have agreed upon the project’s valuation of rupees 671,100,000 (approximately $11,001,639 USD);
– The agreed upon total purchase price in the agreement is rupees 387,500,000 (approximately $6,352,459 USD);
– The long terms loans provided by the State Bank of Patiala (“SBOP”) to the RYEL totaling rupees 283,600,000 (approximately $4,649,180 USD) will remain in place at closing and Sharma has agreed to maintain his current personal guarantees with SBOP until the company can arrange alternative security to SBOP;
– RYEL will be acquired over several tranches through a series of closings. In each closing, PGLO will receive portions of the equity of RYEL until it has reached 100 percent ownership; and
– The first set of tranches totaling approximately rupees 20,000,000 (approximately $327,869 USD) will purchase new equity in RYEL. These first closings will allow RYEL to complete the remaining construction on the project, thereby enabling it to become commercially operational and begin producing revenue.
The figures presented for the agreement were calculated according to an average exchange rate of 61 rupees for every U.S. dollar for the time before October 28, 2013.
More details of the agreement can be found in PGLO’s Form 8-K, available at: www.sec.gov
For more information regarding PGLO, visit: www.panglobalcorp.com
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