Today before the opening bell, Pan Global announced the achievement of a new, significant company milestone. It has completed the third tranche of the first closing of its staggered acquisition of all outstanding shares and convertible debt of Regency Yamuna Energy Limited. Regency Yamuna Energy Limited is a privately held Indian company that is commissioning a 5.7 MW small-hydro project in northern India.
Notably, all funding to finish the construction of this small hydro-plant is now complete, as this tranche was the final tranche of the first of three closings. This development satisfies the requirement under Pan Global and Regency Yamuna Energy Limited's acquisition agreement to fund the completion of the project.
As previously disclosed, Pan Global is working toward a staggered acquisition of 100% of all outstanding shares and convertible debt of the Indian company. The third tranche was closed on Monday, January 27, 2014, and Pan Global, via its wholly owned subsidiary Pan Asia Infratech, Corp. purchased 206,897 common shares from Regency Yamuna Energy Limited for Rs. 3,000,000 (approximately $47,543 USD based on the closing date's exchange rate). As a result of the first and second tranches' completion on December 2, 2013 and December 24, 2013, respectively, Pan Global has purchased and currently owns 1,448,277 common shares of Regency Yamuna Energy Limited. That approximates to 7.51% of the Indian company's outstanding common shares at an aggregate purchase price of Rs. 21,000,010 (approximately $338,992 based on the applicable exchange rates on the respective closing dates).
In line with the companies' acquisition agreement, Regency Yamuna Energy Limited will be using the funds from the third tranche's completion for completion of the small power plant's construction. The power plant's construction is currently 95% complete and scheduled to be finalized soon, as the final stages of construction have been initiated.
Pan Global plans to complete the other closings required by the acquisition agreement for full consummation of its acquisition of Regency Yamuna Energy Limited. As previously disclosed, Pan Global, via Pan Asia Infratech, Corp., entered into a stock purchase agreement with Regency Yamuna Energy Limited on October 28, 2013. In that agreement, Pan Global agreed to acquire 100% of the outstanding shares and convertible debt (if not previously converted) of the Indian company. More details can be found in Pan Global's Form 8-K filed on October 29, 2013.
Pan Global, Corp., through its wholly-owned subsidiary, Pan Asia Infratech, Corp., is focused on environmentally sustainable energy, infrastructure, and technologies. It aims to invest in green energy technology and infrastructure to build an inclusive, green economy around the world.
For more information, visit: panglobalcorp.com
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