Carcetti Capital Corp V.CART.H

Kubgas stake is sold

[nozzpack]

 

Cub Energy closes $10.6M (U.S.) sale of Kubgas stake

 

2022-02-02 12:19 ET - News Release

 

Mr. Patrick McGrath reports

CUB ENERGY ANNOUNCES CLOSING OF SALE OF 35% INTEREST IN KUBGAS

Cub Energy Inc. has closed the sale of its 35-per-cent interest in Kubgas Holdings Ltd. The sale was for a deemed consideration of approximately $10.9-million (U.S.). The consideration comprised a cash payment of $2.6-million (U.S.) and the settlement of $8.3-million (U.S.) in debt. The $8.3-million (U.S.) in debt was settled in full through the repayment of debt and the simultaneous issuance of $7.9-million (U.S.) in dividends to the company with the difference being the applicable withholding taxes. The company continued gas trading of its 35-per-cent interest in Kubgas through to Nov. 15, 2021.

Patrick McGrath, chief executive officer of Cub, said: "The sale of the company's eastern Ukraine asset essentially derisks the company's eastern Ukraine exposure and eliminates the majority of Cub's debt. The company is now focused on its 100-per-cent-owned western Ukraine assets and will continue to review new opportunities."

About Cub Energy Inc.

Cub Energy is a power generation and upstream oil and gas company with a proven record of exploration and production cost-efficiency in Ukraine. The company's strategy is to implement Western technology and capital, combined with local expertise and ownership, to build a portfolio of assets within an advantaged commodity price environment. 

We s

[nozzpack]

My analyses , as presented, is that we will now have $10 million US in cash, no debt and the western RK assets which I value in the $5 m to $15 million range perhaps closer to the lower number but that is a guess. Any sale will probably to NAFTA  and close out the company  or acquire assets elsewhere. Either way, there is money to be made here..

[Cross19]

not saying that there is no money to be made here, but what about the bank loan and the loan from Pelicourt. I don't think they are getting reimbursed by the sale of Eastern assets. I think it's just the loan to Kub Gas...

[nozzpack]

That paid off the loan and all debt which left $2.6 million US added to the cash position plus about $1 million US for the dividend up to November 15. I see several options here including a substantial development under taking or selling RK and distributing net proceeds to shareholders ..about $20 million in cad..

[Cross19]

I see no mention of these debts in the NR. They only mention debts to Kub Gas. We shall see in the next financials ...

[nozzpack]

No need of that. Its very simple. Did you include the $3,71 US investment in Kubgas ?

[Cross19]

Not so sure. To me the last NR focus solely on their relationship with Kub Gas. Their debts with Kub Gas, their dividends from Kub Gas and the sale of their 35% stake in Kub Gas. If you prove me wrong with clear numbers from last financials, I will admit my mistake, but until then, your numbers are all mixed up...

[JustforFun7]

Agree. The company is not debt free. Not sure how much remains. Does it not seem from the PR that the November dividends was part of the deal to pay off the debt? Divys outstanding + proceeds from sale - - outstanding CUBgas debt - withholding tax  = 2.6 mill USD JFF7

[nozzpack]

The $8.3-million (U.S.) in debt was settled in full through the repayment of debt and the simultaneous issuance of $7.9-million (U.S.) in dividends to the company with the difference being the applicable withholding taxes...

[Cross19]

it would be good if you would read the Q3 financials instead of spreading non sense based on nothing, respectfully... " On September 7, 2021, the Company announced it had entered into a letter agreement to sell its 35% interest in KUB-Gas for a cash payment of $2,600 and settlement of approximately $8,000 in debt for total deemed consideration of approximately $10,600. The settlement of debt

[nozzpack]

From Q3/21...... Total liabilities of $10.9 million US. Receiving from Kub Holdings $10.9 million US. Zero liabilities remaining..

[CamelHurder]

a friend of mine said this OutfIt was run by Texans....in Texas...zso when did the Albertans take over--I know Calgary was mostly oil exploration companies,,,,,ny niece worked for X-LOG

[JustforFun7]

It's a Canadian company originally with headquarters in Calagry. Just a mailing address now. Run out of Houston.  JFF7

[CamelHurder]

heard  a rumur that the Danish Royal Family could hold an interest and may buy ot out