Mr. Timothy Turner reports
UNITED HUNTER OIL & GAS CORP. ENTERS INTO PURCHASE AGREEMENT WITH DUE SOUTH ENERGY, LTD.
United Hunter Oil & Gas Corp. has signed a binding and exclusive investment agreement, whereby the corporation will acquire certain assets from Due South Energy Ltd., an energy company based in London, England, that specializes in the development of solar energy projects worldwide.
Pursuant to the agreement, the corporation will acquire an interest in one advanced and several potential renewable energy projects located in Africa and the Middle East.
The principal terms of the acquisition are as follows:
- The corporation will acquire a one-third equity interest in a newly
formed entity in Dubai, which will own 100 per cent of a renewable energy
project slated for development in the Republic of Sudan. Multiple
agreements have been entered into by Due South in the Republic of Sudan,
including a 400-megawatt photovoltaic solar development agreement between the
Ministry of Water Resources and Electricity of the Republic of Sudan and
Due South, signed on Feb. 11, 2016.
- The corporation will acquire 100 per cent of Due South's assets related to
potential, prospective or conceptual renewable energy projects located
in multiple countries in the Middle East and Northern Africa, including
all other intellectual property, proposed contracts, memorandums of
understanding, equipment, and plans to develop, build and maintain large-scale ground-mounted solar photovoltaic projects.
- The corporation will pay a purchase price of 400,000 pounds for the one-third interest in the Dubai entity and will have the right to appoint
one-third of the board members. The corporation will issue two million common shares in the capital of the corporation to Due South at the closing of the acquisition for all of the other
assets to be acquired by the corporation pursuant to the agreement.
The acquisition is expected to close on or about Sept. 30, 2016, or such other date as is mutually agreed upon by the parties, and is subject to a number of conditions, including: (i) the negotiation and completion of final documentation, (ii) the completion of a sufficient financing transaction by the corporation (the terms of which will be disclosed in a separate news release), (iii) all necessary third party approvals, including the approval of the TSX Venture Exchange, and (iv) other standard conditions precedent that are customary for transactions of a similar nature. The corporation may advance certain proceeds to Due South prior to the closing of the acquisition as secured debt at market interest rates to facilitate the completion of the acquisition.
Following the completion of the acquisition, the current chief executive officer of Due South, Steven Edwards, will become the president of the corporation and focus specifically on the solar power segment of the business. The current chief executive officer of the corporation, Timothy Turner, will continue to oversee the company's broader direction in the energy arena, including the oil and gas segment. Mr. Edwards currently resides in England.
Mr. Turner, chief executive officer of the corporation, commented: "Our goal from the start of our tenure has been to review significant opportunities for the corporation, and also to expand and diversify our operations and holdings, and this acquisition, in such an exciting sector of the energy industry, has the potential to meet or exceed our short-term and long-term business objectives. We could not be more delighted that Mr. Steven Edwards will be joining us and bringing the significant resources that his team has developed in this field to the corporation."
We seek Safe Harbor.
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