Fort St. John, British Columbia--(Newsfile Corp. - December 16, 2020) - Macro Enterprises Inc. (TSXV: MCR) (the "Company" or "Macro") is reporting that Macro Spiecapag Trans Mountain Joint Venture, its 50/50 joint venture with Spiecapag Canada Corp. ("Spiecapag"), has received a Notice of Termination from Trans Mountain Pipeline L.P. ("Trans Mountain") to terminate for cause the construction contract for Spread 5B of the Trans Mountain Expansion Pipeline Project (the "TMEP Project") due to ongoing challenges between the joint venture and Trans Mountain.
Macro and Trans Mountain continue to be in discussions regarding future opportunities that are expected to contractually occur in early 2021.
Furthermore, the Company announces that it has completed the reorganization plan, announced November 27, 2020, related to the Coastal GasLink Pipeline Project ("CGL Project). In addition, Macro received a closing cash payment of $20 million, and is to receive a further $20 million payment on June 30, 2020, in satisfaction of all amounts owing to Macro by the CGL joint venture.
Macro has agreed to continue to provide support to Spiecapag on the CGL Project by providing equipment and personnel to assist Spiecapag to complete that project. The Company will be paid market-based rates and fees for such equipment and personnel.
The Company remains on target to meet its fiscal 2020 annual revenue guidance of $250 million reported in its third quarter MD&A dated November 27, 2020. This estimate considers the Company's current core business underway and a pro-rata portion of its joint venture interests as at the closing of the above-discussed reorganization plan. Margins are expected to remain consistent with the previous nine months reported for this year.
The Company