Turner Valley Oil & Gas, Inc. (OTC) $TVOG
Turner Enters into Acquisition Agreement for Operating Bitumen Tanker Assets
The Company prepares to take advantage of proposed bipartisan $1 Trillion U.S. Federal infrastructure modernization plan
HOUSTON /March 14, 2017/ -- Turner Valley Oil and Gas, Inc. (the "Company") (“Turner”) (OTC:TVOG), pending name change to Turner Venture Group, Inc., is pleased to announce that it has reached an agreement (“Acquisition Agreement”) to acquire the operating, profitable assets of an international bitumen tanker shipping company (“Shipping Company”) focused on the commercial transportation of bitumen/asphalt products worldwide used in paving roads and highways.
Acquisition Highlights:
| · | The assets being acquired from the Shipping Company are specializing in petroleum products and dry bulk commodities distribution which has experienced a recent downcycle creating industry distress and special situation opportunities. | |
| · | Commodity prices are expected rise again in the coming years and the Company expects strong upside potential from growing global infrastructure demand for bitumen/asphalt products. | |
| · | Turner is working with a full service investment bank which will be disclosed in a subsequent filing to acquire the assets and control of a highly specialized fleet of 5 (five) bitumen oil tankers with an average fleet age of 8 years and an approximate fleet value of $28,000,000 (Twenty Eight Million). | |
| · | The assets being acquired are being audited by Turner where initial numbers from annual operating revenues for 2016 are estimated at $14,000,000 (Fourteen Million), with an estimated 2016 EBITDA of $1,100,000 (One Million, One Hundred Thousand). |
Transaction
Under the terms of the Acquisition Agreement, Turner will acquire the assets included herein of the existing Shipping Company in an all equity transaction involving the issuance of Preferred Shares of the Company, thus limiting dilution.
Turner and the investment bank believe that these assets can be operated more efficiently than the previous company was able to accomplish, and acquiring their assets at at attractive valuations will provide a competitive advantage. Turner is in discussions with prospective executives and board members with experience in international shipping to join Turner’s management team to run this new Turner subsidiary.
Turner and the investment bank believe that these assets can be operated more efficiently than the previous company was able to accomplish, and acquiring their assets at at attractive valuations will provide a competitive advantage. Turner is in discussions with prospective executives and board members with experience in international shipping to join Turner’s management team to run this new Turner subsidiary.
Upon completion of the Acquisition, the new shipping company will be a wholly owned subsidiary of Turner. A bitumen tanker company website with complete details and information about the new venture will be revealed soon.
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