Ghana Joint Venture PropertyEnerDynamic Update on the Asset Value of Ghana Joint Venture Property NIAGARA FALLS, ON / ACCESSWIRE / February 26, 2020 / EnerDynamic Hybrid Technologies Corp. (TSXV:EHT) ("EHT") is pleased to provide an important update to shareholders on the valuation of its assets involved in the Dawa Industrial Housing Project in Ghana, in which EHT's current joint venture with United Construction and Investments (the "UCI-EHT JV") is a primary participant.
UCI-EHT Ghana Project 100,000 houses at Dawa Industrial Area.
In EHT's February 19, 2020, news release, we stated that the real property the Government of Ghana granted to the UCI-EHT JV, which is now owned by the JV, has been formally appraised at $64.3M USD ($73.3M CAD).
As previously announced, this property will be the underpinning of the security for the construction of the homes to be built by the UCI-EHT JV
We want/wish to reiterate that the UCI-EHT JV is 70% owned by EHT, which means that this (real) property is now an asset of the JV company, and therefore, EHT can now show this entire value amount on EHT's consolidated financial statements going forward.
EHT will, through the course of the UCI-EHT JV, reduce the asset value in correlation with sales recorded on the income statement as it builds houses and sells them back to the Government of Ghana, as per EHT's contract therewith.
As sales are recorded by the UCI-EHT JV, EHT will continue to make margin on the sale of the houses themselves, as well as on the materials EHT delivers to the UCI-EHT JV.
Through this promising development, EHT has strengthened its balance sheet, while at the same time recorded a significant pipeline of sales, which we look forward to delivering on with our partners in Ghana.
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