FormerXBC Inc XEBEQ

Xebec and Shenergy Strengthen Partnership to Develop China’s

[RiskonRiskoff]

I was hoping someone could enlighten me regarding this press release.  

Per note 16 From the annual 2019 audited Financials Xebec had to buyback the outstanding shares issued from Xebec (Shanghai) in 2015 for $3.4M by Dec. 31, 2020. These shares represented 30% of Xebec (Shanghai). One of the Xebec (Shanghai) shareholders was a subsidiary of Shenergy with a 28.26% share.  So from what I gather this is just a restructuring of Xebec’s obligation to buyback those shares and not a “New” equity injection.



MONTREAL, (QC), November 12th, 2020 – Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions, today announced a strengthened partnership with Shanghai based Shenergy Group Company Limited (“Shenergy”). Initially formed in 2015, the existing Sino-Joint Venture partnership with Xebec Shanghai, will receive a direct strategic equity investment ($3.4M) from Shenergy in exchange for the debt and interest owed by Xebec for its share buyback obligation. The newly formed partnership will open large-scale opportunities to develop hydrogen infrastructure in China. Shenergy is one of several designated state-owned enterprises tasked with building out hydrogen infrastructure in Shanghai and across China.

[tamaracktop]

   Yes! You are correct! You are correct insofar as to how this relates to Xebec's balance sheet, but not so much as to the implications of this news.     Xebec's obligation to buy back these shares will be removed as a debt obligation on the liability side of the balance sheet.    Shenergy now becomes a bona-fide minority equity partner in a joint Sino

[RiskonRiskoff]

Thank you tamarack top.  Good news indeed. I guess all this started when they were going through hard times and issued shares to the Shanghai management team (in lieu of cash) followed by issuance of additional shares in 2015 to the Shenergy subsidiary.

[GGreen]

I agree it does look like they're just moving the peanut shells around. While I understand the potential of possible opportunities in China (and possible benefits from having a former Deloitte China mgmt committee member on the board of XBC) I have been tainted by my experience with Chinese businesses (and inherent role of Chinese gov't in them). Prior to going to China we had a draft LOI

[Resilience19]

@GGreen, having worked in several African countries over the past years, I've indirectly observed several of the "36 Stratagems" used by the Chinese in doing business - both with governments as well as with established businesses.  From speaking with people having been on the receiving end of those tactics,  feedback received is that if given the choice they would, in