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.
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