Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Enters Into a Consent and Intercreditor Agreement for Moxie Patriot Gas Fired Power Plant
Argan, Inc. (NYSE MKT: AGX) announced that its wholly owned
subsidiary, Gemma Power Systems (GPS) entered into a Consent and
Intercreditor Agreement in connection with the construction and design
of a 820 MW gas fired power plant in Pennsylvania.
GPS has been funding Moxie Patriot LLC (Moxie Patriot) in the
development of this power plant project and has advanced approximately
$3.7 million in working capital to the project. On May 3, 2013, Moxie
Patriot entered into a Membership Interests Purchase Agreement with a
third party investor who will provide advances of certain
preconstruction costs. The consummation of the purchase of Moxie Patriot
is contingent upon the third party investor securing permanent financing
for the project.
Should the third party investor consummate the Moxie Patriot purchase,
GPS would build and design the power plant under an EPC agreement. GPS
would receive development success fees and repayment of the working
capital advances plus accrued interest from the proceeds of the sale of
Moxie Patriot.
About Argan, Inc.
Argan’s primary business is designing and building energy plants through
its Gemma Power Systems subsidiary. These energy plants include
traditional gas as well as alternative energy including biodiesel,
ethanol, and renewable energy sources such as wind power. Argan also
owns Southern Maryland Cable, Inc.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities
laws and are subject to risks and uncertainties including, but not
limited to: (1) the Company’s ability to achieve its business strategy
while effectively managing costs and expenses; (2) the Company’s ability
to successfully and profitably integrate acquisitions; and (3) the
continued strong performance of the energy sector. Actual results and
the timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a
number of factors detailed from time to time in Argan’s filings with the
Securities and Exchange Commission. In addition, reference is
hereby made to cautionary statements with respect to risk factors set
forth in the Company’s most recent reports on Form 10-K and 10-Q, and
other SEC filings.
