CALGARY, July 12 /CNW/ - Sparta Capital Ltd. (TSX-V: SAY):
Sparta Capital Ltd. reports that it has divested its entire investment in a private oil and gas data services business for proceeds of $461,210. The proceeds consist of $334,547 cash and a $126,663 unsecured promissory note. The terms of the promissory note include monthly payments of $25,000 commencing August 15, 2010 along with $5,000 of lump sum interest due on the maturity date of the promissory note November 15, 2010. Under terms of the private company's Unanimous Shareholders Agreement, the purchasing group included the private company itself purchasing shares for cancellation, with participation by shareholders of the private company which included an officer and director of Sparta.
Sparta acquired the investment on May 14, 2009 for $300,000 and therefore the sale proceeds represent a $161,210 gain.
The divestiture represented an excellent opportunity to realize a gain on the investment and provide necessary funds to focus on anticipated growth in marketing expenditures related to the Hy-Drive System, investigation of potential business opportunities and general working capital requirements.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to Sparta. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the periodic reports filed by the companies with regulatory authorities. Actual results may differ materially from those currently anticipated. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
THE TSX VENTURE EXCHANGE INC. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE SPARTA CAPITAL LTD.
For further information: For further information: Sparta Capital Ltd. please contact: Ted Rousseau, President, Phone: (780) 489-8334, Fax: (780) 487-4470, firstname.lastname@example.org OR Ray Ludwig, Vice-President Operations, Phone: (403) 539-9146, Fax: (403) 206-7568, email@example.com