Category Archives: Proceeds from Investment sales

Orca Exploration Group announced completion of the first tranche of investment

Orca Exploration Group announced on 16 January 2018 that the escrow release conditions have been met regarding the first tranche of investment by Swala Oil & Gas in the Orca Group. The definitive agreements for the US$130 million investment were released, and the first tranche is now complete.

Under the first tranche, the BVI Group sold 7.93% of shares that were held in PAE PanAfrican Energy Corporation to Swala (PAEM) Limited, a wholly-owned subsidiary of Swala, for US$25,782,250 (or US$21,022,450 net after some purchase adjustments), which is payable in US$17,055,950 cash and the right to receive either US$3,966,500 in Swala convertible preferred shares by 2 March 2018, or US$3,966,500 in cash if shares are not issued by that date.

Orca Exploration also entered into an amendment and consent letter with PanAfrican Energy Tanzania Limited (PAET) and International Finance Corporation (IFC), as part of the agreement. According to this agreement, PAET will prepay the IFC loan facility in part no later than 10 December 2019. As part of the amendment and consent letter, Orca guaranteed the prepayments owed by PAET to IFC. After the first tranche, BVI Group’s guarantee covers US$4,759,800 in prepayments, and would cover an aggregate of US$24,000,000 in prepayments due 10 December 2019.

BVI group agreed on the terms of US$130 mln investment

Orca Exploration Group, an international public company registered in the British Virgin Islands, finalized terms for strategic investment by Swala Oil & Gas (Tanzania) plc, which is US$130mln worth. Swala is an independent oil & gas exploration and production company, the first to be listed on an East African Stock Exchange.

Under the terms of the investment agreement, Swala will acquire up to 40% interest in BVI company’s wholly owned subsidiary, a Mauritius-registered company and the sole shareholder of PanAfrican Energy Tanzania Limited. The investment transactions are based on an agreed value of US$325mln for Orca’s subsidiary, approximately 85% of the purchase price is payable in cash.

Orca Group secures a strategic investor in Swala with international institutional and Tanzanian investor support. The first investment transaction is to be completed on or before 12 January 2018, and the remaining transactions are to be completed on or before 28 January 2018.

According to BVI group’s chairman and CEO W. David Lyons, “This is a transformational transaction for Orca. To the broader Orca Group, this investment is strategic in both underpinning the intrinsic value of our business and providing a platform from which to grow and diversify our company and deliver value to our shareholders.”

CNIT announced receiving US$1.5Mln and US$0.5Mln Ad Terminal Orders

China Information Technology, Inc., BVI-registered internet services operator providing internet-based ad distribution and ad display terminal sharing systems in China, in October 2017 entered into contracts for the sale of 5,000 CNIT cloud-based ad terminals for Jiangsu Province, and for the sale of 1,500 CNIT cloud-based ad terminals for Changde, the third largest city in Hunan Province. The terminals are to be installed in office buildings, residential communities, shopping malls and various outdoor locations.

The contract for Jiangsu Province, announced on October 25, 2017, was signed with advertising agency Jiangsu Taoping IoT Technology Limited, and is expected to generate US$1.5 million sales and service revenue to China Information Technology. This agreement is the fourth for the company this year for the sale of its cloud-based ad terminals in East China.

The contract for Changde in Hunan Province was announced on October 19, and signed with advertising agency Changde Taoping New-media Technology Limited; it is expected to generate US$0.5 million sales and service revenue to the BVI company.

Company’s CEO Mr. Jianghuai Lin restated company’s projection of 2018 revenue of $30 to $33 million and adjusted net income of $9 to $11 million, with sales of additional 120,000 cloud-based ad terminals.

E-House Holdings Limited issues new shares to BVI company

E-House (China) Holdings Limited, leading real estate services company in China, has recently completed its new share issuance to the management team. As a result of this transaction, E-House issued 17,790,125 of its ordinary shares to the British Virgin Islands-registered company Kanrich Holdings Limited, which is owned by the key members of Chinese company’s management, for an aggregate purchase price of approximately US$62.6 million.

Upon completion of the transaction, the E-House management team receives combined stake in the company of approximately 31 per cent, thus becoming its largest shareholder as a group.

All the proceeds from the share issuance to the BVI company are to be used for repurchasing E-House’s ADS on the open market. The shares issued to Kanrich are subject to a 12 month lock-up period. This does not apply to the share charge created by Kanrich for the benefit of a third-party lender, which to the knowledge of the Company, entered into a margin loan facility agreement and related share and account charge with Kanrich to provide financing for the purchase of the new shares of the Company.