Under the terms of the agreement, MGG has agreed to sell 100% of its shares in Mandal General Daatgal LLC to UMC Capital LLC for gross proceeds of approximately 5.90 billion Mongolian Togrog (approximately Cdn$3.50 million), representing a surplus of approximately 900 million Mongolian Togrog (approximately Cdn$542,000) from MGG's original contribution after accounting for a 1.24 billion Mongolian Togrog (approximately Cdn$746,000) release of statutory capital to MGG. In addition, this sale price represents an expected 2.7 billion Mongolian Togrog (approximately Cdn$1,627,000) premium to second quarter, 2013 net tangible book value.
They had said earlier in the year they were going to do this. It appears we make a slight profit on the deal. I like the focus on real estate going forward. This is also gets us to cashflow positive sooner than later.
Disclosure: I am long OTCPK:MNGGF.