Globe Exploration LP (TASE: GLEX.L) today notified the Tel Aviv Stock Exchange (TASE) that it had received a letter of intent from Blackhawk Partners concerning an investment of up to $60 million in exploration and development of Globe licenses, Ofek, Yahel and Bar-Or.
Globe noted that 100% of its license rights must be transferred and held by a new, private corporation, in order to comply with the company’s investment policies. The license rights will be transferred subject to the general partner’s royalty rights. The company will hold 50% of the new corporation’s shares, and the partnership and others will hold the remaining shares.
Globe added that it would control the new corporation. The company and the partners will hold talks to reach a detailed and final joint development agreement within 30 days.
Businessman Zvika Boroditzky bought 25% of Globe Exploration from the general partner a few months ago. It should be stressed that no agreement has yet been signed and there is no guarantee that the letter of intent will lead to a binding agreement.
The partnership intends to examine, in cooperation with the company and its professional advisors, the various aspects of the proposed arrangement, and the issues that arise in this regard, and whether the proposed arrangement is viable considering the provisions applicable to the partnership, in accordance with TASE rules, applicable tax arrangements, and other legal provisions.
Globe's share price rose 80% on the TASE to NIS 0.17 following the news.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014