At the closing, Harvest received US$80 million in cash, a US$12 million six-month 11% note payable to Harvest by the purchaser, and cancelation of $30 million in debt owed by Harvest to CT Energy.
Harvest said it used part of this cash consideration to pay the remaining debt it owed to CT Energy and for other expenses and adjustments associated with the transaction.
After all the totting up had been done, net cash proceeds received after paying the above closing adjustments and other expenses was US$69.4 million.
The disposal leaves Harvest focused on its oil and gas interests in Gabon. These assets are also attracting the attention of potential buyers, with the company having received approaches from two prospective purchasers.
“Harvest is currently evaluating the possible sale of its Gabon interests, distributions of cash to its stockholders, and possible dissolution of the company,” it told investors.
That was enough to send the shares surging just over 12% to US$0.954.
Story by ProactiveInvestors