CALGARY, Aug. 19, 2015 /CNW/ - Gemini Corporation
(GKX-TSXV) today announced that it has entered into a sale and
leaseback agreement with 1735465 Alberta Ltd. for the land and
buildings at its Ponoka, Alberta
fabrication facility. The land and buildings are to be sold for
$5,475,000, less any transaction
fees, which will be settled in cash and is scheduled to close
before August 28, 2015. The
Corporation chose to complete this sale and leaseback in order to
augment its working capital position. A recently completed
independent appraisal of the land and buildings was used to
determine the transaction value and any fees incurred relate to
routine legal, appraisal and financial advisor costs. The term of
the leaseback arrangement is eight years with two additional option
periods of five years each and contemplates an annual minimum lease
amount of approximately $438,000,
payable in monthly installments. A Special Committee of the
Board of Directors was appointed to review and guide this
transaction with the assistance of an independent financial advisor
that concluded that the transaction was fair, reasonable and in the
best interests of the Corporation. This transaction is subject to
certain closing conditions, including the review and approval by
the TSX Venture Exchange.
1735465 Alberta Ltd. is a wholly owned subsidiary of Balboa Land
Investments Inc., which is a subsidiary of Coril Holdings Ltd., the
Corporation's largest shareholder owning 47% of the issued and
outstanding share capital of Gemini Corporation.
About Gemini Corporation|
Gemini Corporation is a
professional services firm that designs, builds and maintains
energy and industrial facilities. We provide regulatory,
environmental, engineering, fabrication, installation and
maintenance solutions for clients through stand-alone or integrated
service delivery models. Our design-build capabilities
differentiate Gemini and provide tremendous value-added benefits
for clients, such as cost certainty, schedule compression and one
point of accountability. The Corporation's principal target markets
are midstream oil and gas, oil and gas production, in-situ heavy
oil, and oil and gas processing across western Canada.
Shares of Gemini trade on the TSX Venture Exchange under the
symbol GKX. For more information about the Corporation and its
services, go to www.geminicorp.ca.
Disclaimer
This news release may contain
forward looking information that represents Gemini's internal
projections, expectations, estimates or beliefs
concerning, among other things, expected closing and closing
date of the sale and leaseback transaction with 1735465 Alberta
Ltd., future operating results and various components thereof or
Gemini's future economic performance. All statements other than the
statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by
terminology such as "may", "will", "should", "expects", "projects",
"plans", "anticipates", and similar expressions. The projections,
estimates and beliefs contained in such forward-looking statements
are based on management's assumptions relating to Gemini's
performance and competition within the sectors in which it
competes, the continuation of the current regulatory and tax
regimes in the jurisdictions in which Gemini operates, and
necessarily involve known and unknown risks and uncertainties,
including risks and assumptions relating to client service demand,
field service costs, labour rates, and other factors
that may cause actual performance and financial results in future
periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted or suggested. The Corporation does not undertake to
update any forward-looking information in this document whether as
to new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Gemini Corporation