Pan Global, Corp. Provides Part E of Shareholders Analysis Series
-- Project Badyar Annual Revenues Forecasted to Be Approximately
$1.95 Million USD for 35 Years
CARSON CITY, NV--(Marketwired - Apr 17, 2014) - Pan Global,
Corp. (OTCQB: PGLO) (the "Company") today announces the 5th and
final part of a five-part series of press releases intended to
provide its current and prospective shareholders with an analysis
of the Company's opportunity in India's green energy industry, plus
additional details about Project Badyar, a 5.7MW small-hydro power
plant in northern India currently being acquired by the Company
through its staggered purchase of the outstanding equity (and
convertible debt if not converted) of Regency Yamuna Energy
Limited, an India corporation commissioning the project
("RYEL").
In today's final analysis report, the Company is pleased to
present the annual revenue forecasts for Project Badyar.
As previously disclosed in yesterday's Part D Analysis press
release, under the Power Purchase Agreement for Project Badyar
between RYEL and India's state-owned power company, Uttaranchal
Power Corporation Limited, Project Badyar will earn 4.27 INR
($0.0709 USD) per kilowatt hour (kWh) as a gross tariff rate.
According to RYEL, the Project annual power production is expected
to be in the range of 27.5 million kWh per year. Based on the 4.27
INR gross tariff rate and the expected annual power production,
Project Badyar is forecasted to generate annual revenue in the
range of $1.95 million USD per year for the life of the Project,
which is 35 years under India's Uttarakhand Electricity Regulatory
Commission 2013 regulations and the Power Purchase Agreement,
starting on Project Badyar's commercial operation date. Actual
power generation and revenue will vary from year to year depending
on hydrological considerations and the revenue amount in U.S.
Dollars will fluctuate based on the INR USD exchange ratio.
Project Badyar is forecasted to generate EBITDA margins of 90%
or more with significant cash flow generation due to, as per
industry norms, significant amount of the costs of power production
are incurred at the construction stage and operating costs for
small-hydro power plants being minimal. In the initial years of
commercial operations, much of Project Badyar's cash flow will go
towards debt repayments, specifically towards a term loan from a
major Indian bank. However, the Company expects cash flow and net
earnings from Project Badyar to increase over time as the term loan
is paid down. The Company expects, upon full consummation of
acquiring Project Badyar, to be able to seek financing for
additional small-hydro projects through the advantage of having
internally generated cash flow.
Photos of Project Badyar can be viewed at the following link:
http://www.slideshare.net/slideshow/embed_code/33051642
Company management commented, "We are excited to share the
revenue potential of Project Badyar with our shareholders today.
Once construction is completed, the process of getting Project
Badyar connected to the power grid is intended to begin immediately
so that Project Badyar can commence commercial operations as soon
as possible. We believe that once Project Badyar is connected to
the power grid, its revenues will be stable for many years to come
and thus provide a stable foundation as the Company's first
small-hydro plant acquisition. We intend to continue to increase
our equity interest in RYEL under our acquisition agreement with
RYEL and look forward to continuing our effort towards our long
term goal of building shareholder value."
Project Badyar is estimated to be 95% complete and is in the
final stages of construction, which is expected to be completed
this month, barring adverse weather or unforeseen
circumstances.
As previously reported, the Company is in the process of
acquiring 100% of Project Badyar through its staggered acquisition
of RYEL pursuant to a Stock Purchase Agreement, dated October 28,
2013 (the "Acquisition Agreement"), between the Company's
wholly-owned subsidiary, Pan Asia Infratech Corp., RYEL and the
RYEL shareholders. Pursuant to the Acquisition Agreement, the
Company has agreed to acquire, on a staggered basis, 100% of the
outstanding shares and convertible debt (if not previously
converted) of RYEL. The Company currently holds a 9.46% equity
stake in RYEL.
The Acquisition Agreement contains pre-closing conditions,
customary representations and warranties, post-closing covenants
and mutual indemnification obligations for, among other things,
inaccuracy or breach of any representation or warranty and any
breach or non-fulfillment of any covenant.
Further details of the Acquisition Agreement are available in
the Company's periodic and current reports filed with the SEC and
available on the SEC's website free of charge at www.sec.gov.
About Pan Global,
Corp.
Pan Global, Corp., through its wholly-owned subsidiary, Pan Asia
Infratech, Corp., is focused on environmentally sustainable energy,
infrastructure and technologies. Our aim is to invest in green
energy technology and infrastructure to build an inclusive green
economy around the world.
For additional information, please visit the Company's website
at www.panglobalcorp.com, the contents of which are not
incorporated into this press release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The foregoing contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend for these forward-looking statements to be covered
by the safe harbor provisions of the federal securities laws
relating to forward-looking statements. These forward-looking
statements include statements relating to, or representing
management's beliefs about, our future transactions, strategies,
operations, events and financial results. Such forward-looking
statements often contain words such as "will," "anticipate,"
"believe," "plan," "estimate," "expect," "intend," "is targeting,"
"may," "should" and other similar words or expressions.
Forward-looking statements are made based upon management's current
expectations and beliefs and are not guarantees of future
performance. Our actual business, financial condition or results of
operations may differ materially from those suggested by
forward-looking statements as a result of risks and uncertainties
which include, among others, those risks and uncertainties
described in any of our other filings with the SEC. Certain other
factors which may impact our business, financial condition or
results of operations or which may cause actual results to differ
from such forward-looking statements are discussed or included in
our periodic reports filed with the SEC and are available on our
website at www.panglobalcorp.com under "Investor Info". You are
urged to carefully consider all such factors. We do not undertake
or plan to update or revise forward-looking statements to reflect
actual results, changes in plans, assumptions, estimates or
projections, or other circumstances occurring after the date of
this news release, even if such results, changes or circumstances
make it clear that any forward-looking information will not be
realized. If we make any future public statements or disclosures
which modify or impact any of the forward-looking statements
contained in or accompanying this news release, such statements or
disclosures will be deemed to modify or supersede such statements
in this news release.
Disclaimer: This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful.
Contact Information Pan Global, Corp. Investor Relations Phone:
877-999-7978 Email: PGLO@panglobalcorp.com
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