Weyburn Inland Terminal acquires majority interest in NorAmera BioEnergy Corporation - Mergers and Acquisitions (MERGERAC) News - InvestorPoint.com
Jul 24, 2013
Weyburn Inland Terminal acquires majority interest in NorAmera BioEnergy Corporation2008-07-14T19:29
Weyburn Inland Terminal acquires majority interest in NorAmera BioEnergy Corporation
SASKATOON, July 14 /CNW/ - Golden Opportunities Fund Inc. (the "Fund")and Weyburn Inland Terminal Ltd. ("WIT") are pleased to jointly announce thatWIT has acquired 4,000,000 Class A common shares of NorAmera BioEnergyCorporation ("NorAmera") for a purchase price of $1.00 per Share, for theaggregate consideration of $3,000,000 cash and the issuance of 20,000 commonshares of WIT. Following the completion of the acquisition, WIT holds 55.5% ofthe outstanding Shares. The Fund will hold 42.25% of the outstanding Shares ofNorAmera and the remaining 2.25% of the Shares will be held by management aspart of the restructured partnership. NorAmera also granted to WIT a debenturein the principal amount of $2,750,000. This debenture is on the same terms andamounts as the outstanding debenture held by Golden Opportunities Fund. In tandem with the acquisition of the majority interest in NorAmera, WITacquired a 75% interest in 101125094 Saskatchewan Ltd. for $1,338,750 and theFund acquired the remaining 25%. 101125094 used the cash proceeds for theacquisition of certain warehouse facilities and equipment fromNorAmera Ventures Inc. for the aggregate purchase price of $4,560,000. Theremainder of the purchase price was financed through a debenture in theprincipal amount of $2,500,000 granted by 101125094 to WIT. Some of theacquired warehouse facilities and equipment are leased to NorAmera. NorAmera is a Saskatchewan based company operating in Weyburn,Saskatchewan, that produces grain based ethanol under the small producersmandate. WIT CEO Rob Davies noted "WIT sees this acquisition as a soliddiversification opportunity for our company. We look forward to the strategicpartnership with NorAmera and Golden Opportunities Fund and the opportunitieswe see for further growth in this business going forward. "
Doug Banzet, CFO and Director of Golden Opportunities indicates "NorAmerais one of the first producers under the ethanol mandate in Saskatchewan. Theinvestment by WIT into NorAmera is a strong vote of confidence of theopportunity that we have believed in from the outset. "
WIT is a shareholder-owned, farmer-directed grain company located on CPRail's Soo Line near Weyburn, Saskatchewan. Since its start in 1976, "TheTerminal" has been at the forefront of change in the industry, leading the wayto help improve the overall efficiency of Canada's grain-handling system. Thephilosophy and goals of the company are summed up in its mission statement:Profitability Through Service, Innovation and Integrity. Golden Opportunities Fund Inc. is Saskatchewan's first and largestProvincial Labour-sponsored Investment Fund, having raised over $130 millionin share capital to date from approximately 17,000 shareholders. The Fund hascompleted over 100 investment transactions in 75 different Saskatchewan growthcompanies across 11 different industry sectors for diversification, impactingthe future of Saskatchewan. Saskatchewan Financial Services Commission has neither approved nor
disapproved the information contained herein. Source: Canada Newswire (July 14, 2008 - 7:29 PM EDT)
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