Etrion announces non-core asset sale
Wednesday, Oct 16, 2013Etrion Corporation ("Etrion" or the "Company") (TSX:ETX)(OMX:ETX), a solar independent power producer, announces the sale of its non-core legacy oil and gas assets for aggregate proceeds of US$5 million.
Etrion has sold all of its shares in PFC Oil & Gas, CA ("PFC") for US$5 million in cash. US$3 million was paid at closing, and the balance of US$2 million is expected to be received in March 2014. PFC owns 40% of PetroCumarebo and 5% of Baripetrol, two Venezuelan oil and gas companies controlled by Petroleos de Venezuela ("PDVSA"), the national oil company. The board and management of PFC is expected to remain unchanged.
The Company shifted its business focus from oil and gas to renewable power generation following the acquisition of Solar Resources Holding Sarl in September 2009. Since that time, the Company's holdings in PetroCumarebo and Baripetrol have been considered passive investments classified as available for sale. The non-core assets were carried on Etrion's balance sheet at US$1 million net of advance dividends. Etrion's remaining assets are entirely focused on solar power generation.
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