By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A UK-based investor yesterday said it had invested another $1.099 million into a Grand Bahama-based company to help finance its Freeport-based oil hydrocarbon recovery plant.
TXO PLC, a company listed on London’s Alternative Investment Market (AIM), said it had increased its equity stake in Grand Bahama Group by a further 6.53 per cent, taking its total shareholding in the latter to 30.17 per cent.
It did this by purchasing another 100 ordinary shares in Grand Bahama Group for �700,000 or $1.099 million, paying half the price in cash and the remainder via issuing 116,666,667 ordinary shares in TXO at a value of �0.03 per share.
As a result, Grand Bahama Group had increased its shareholding in TXO to 12.4 per cent, the issued shares amounting to an 11.04 per cent stake.
“The investment by TXO in Grand Bahama Group will be directed to its wholly owned subsidiary, Morgan Oil Marine, for the construction of a Hydrocarbon Recovery Plant in Freeport,” TXO said in a statement.
It added that from January 1, 2012, to 12 September, 2012, Grand Bahama Group had suffered a loss of $433,850 on revenues of $291,643, a normal development for a start-up company.
Grand Bahama Group was said to have net assets of $337,662 at the period end, and TXO yesterday said it had taken out a new option - valid until the 2013 year-end - to acquire a further 268 shares in the hydrocarbon recovery plant operator.
That, if the option is exercised, would take TXO’s total equity stake in Grand Bahama Group to 43.18 per cent.
David Morgan, Grand Bahama Group’s chairman, said: “We are delighted to announce that Morgan Oil Marine has now commenced construction of its new hydrocarbon recovery plant, scheduled to complete in the second quarter of 2013.
“In the interim, the one million gallon capacity barge Martha, and the 20,000-gallon capacity tug, Victoria, have commenced the limited collection of ships’ slops and used lubricant whilst the crews are undergoing sea trials.
“This will generate positive cash flow that may help reduce any requirement for further equity investment. However, we have agreed to extend the option to allow the maximum flexibility in this regard. “
Tim Baldwin, TXO’s chief executive and chairman added: “Grand Bahama Group is a low risk, cash generative business that helps to balance the TXO portfolio.”
In TXO’s 2012 annual report, Mr Baldwin added: “Grand Bahama Group’s priority is investment in the Bahamas, and they have made significant progress since our annual report last year.
“The licence was obtained, the land lease agreed, the environmental impact study completed, contracts signed with major shipping agents, a barge and tug boat commissioned ready to collect waste oil, commercial operations commenced and the foundations and civil engineering for construction of the hydrocarbon recovery plant is nearing completion. We expect the first phase of the hydrocarbon recovery plant to be operational by mid-2013.”
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