Post by
Nemesis on Jul 01, 2024 10:17am
FT's reason for letting the option expire ...
In my opinion, this is good news.
The conditions that were attached to the amended agreement gave far too many advantages to JFSL and were far too restrictive for Fortune Minerals and its partners.
Reread the following excerpts from recent press releases ...
May 22, 2024 : Fortune is also pleased to report that it has entered into an amended option agreement with JFSL to acquire its 77-acre site and 42,000 square feet of serviced shops and buildings located in Lamont County Alberta where the Company plans to construct and operate the Alberta Refinery. Fortune has completed option payments to JFSL, totalling C$1.4375 million to be applied against the C$5.5 million purchase price and can complete the acquisition by paying JFSL the balance of the purchase price by June 28, 2024. JFSL will also have the right to use the facilities for a period of 18 months following Fortune’s purchase of the facilities. In addition, JFSL‘s parent, “Worley Group” will have preferential rights to conduct certain engineering work for Fortune.
July 27, 2023 : Fortune can maintain the option by paying JFSL C$15,000 per month and can acquire the facilities for C$5.5 million before December 31, 2023. JFSL’s has the right to solicit competing offers for the facility during the option period, subject to Fortune’s right to complete its purchase at the end of each month of extension at the agreed purchase price and/or exercise its right of first refusal to match the competing offer. If Fortune exercises the option to purchase the refinery site, the extension payments will be applied against the purchase price. JFSL is a subsidiary of Worley Group (“Worley”), a major international engineering services and construction management company. As partial consideration for the extension, Worley will also be a preferred contractor with respect to development of Fortune’s refinery. In addition, JFSL will have the right to continue using the site as a licensee while Fortune completes the permitting required to construct and operate the refinery.
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