NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / November 1, 2024 / Rektron Group Inc. ("Rektron" or the "Company") (CSE:REK.U)(FRA:F75) a global commodities trading house, is pleased to announce that its subsidiary DLH Istros Limited ("DLH Istros") signed a share purchase agreement (the "Agreement") for the sale of all the outstanding shares in its subsidiary, Inland Shipping and Supply Ltd. ("ISS"). ISS owns fuel storage facilities along the Danube River in Europe.
Pursuant to the terms of the Agreement, DLH Istros has agreed to sell the totality of its interest in ISS for gross proceeds of US$36,537,003 in cash (the "Transaction").
Ricardo Phielix, CEO and Director of Rektron commented, "The sale of ISS strengthens the Company's liquidity position and ability to grow further without diluting our shareholders while also removing annual carrying costs related to ISS, which has been inactive since COVID-19."
Terms of the Agreement
Closing of the Transaction is subject to customary conditions including any regulatory approvals.
The gross proceeds will be paid as follows:
An initial payment of USD$5 million deposit on or before November 15, 2024;
The remaining amount of USD$31,537,003 will remain outstanding as a vendor loan that is to be fully repaid including accrued interest of 8% per annum on March 31, 2025 (the "Vendor Loan").
In case the Vendor Loan is not repaid, the transfer of the shares is rescinded and a penalty of USD$5 million is charged to the seller plus accrued interest.
Corporate Update
Moreover, the Company announces the resignation of Mr. Michael Stier as a director on October 29, 2024. The Company would like to thank him for his valued contributions throughout his tenure and wishes him all the best in his future endeavours. The Company has indicated that it will begin a process to find a replacement for Mr. Stier.
On Behalf of the Board of Directors, Rektron Group Inc.
Ricardo Phielix
Chief Executive Officer
FOR FURTHER INFORMATION CONTACT:
Email: ir@rektrongroup.com
Phone: +1 (289) 482-0744
Web: https://www.rektrongroup.com/
About the Company
The Company is the holding and parent company of Rektron AQ Limited, which is the holding and parent company of DL Hudson Limited. DL Hudson Limited is the trading arm of a group of companies, of which there are several subsidiaries that support the group's global commodity trading operations. The Company is headquartered in Vancouver, BC, while Rektron AQ Limited is headquartered in London, UK.
The Company focuses on maintaining an experienced team of management and traders, extensive geographical and product diversification, trading and logistical expertise, and financial and risk management. The team at the Group is composed of energy and metals traders, City of London and Wall Street bankers. The trading expertise includes principal energy and metals products, particularly ferrous and nonferrous metals, Energy Transition Commodities ("ETC"), recycled metals and crude and Euro VI-compliant refined oil products. The Company transacts across all compliant markets following the international trade regulations and guidelines.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to Rektron's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Rektron's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to the other factors set forth under "Caution Regarding Forward-Looking Statements" and "Risk Factors" in the Company's final prospectus dated March 4, 2024 and as amended on June 28, 2024 and August 12, 2024. Rektron undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Rektron to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
No securities regulatory authority has either approved or disapproved of the contents of this news release.
Contact Information
Ricardo Phielix
CEO
ir@rektrongroup.com
+1 (289) 482-0744
SOURCE: Rektron Group Inc.
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