Click here to close now.

SYS-CON MEDIA Authors: Elizabeth White, Carmen Gonzalez, Pat Romanski, Liz McMillan, AppDynamics Blog

News Feed Item

AMG Bioenergy Resources Holdings Ltd. Enters Project Management Agreement

CALGARY, ALBERTA -- (Marketwired) -- 04/01/14 -- AMG Bioenergy Resources Holdings Ltd. (the "Company") (TSX VENTURE:ABG), a Canadian publicly traded company, reports that it has entered into an arm's length project management agreement ("Project Management Agreement") with Mr. Tan Wen Tai of Singapore (the "Stakeholder") dated March 24, 2014 with respect to the development of a resort condominium residences in Hainan island (the "Project") in the People's Republic of China by Hainan Hua Yan Scientific Resources Co. Ltd. (the "Project Company").

The Stakeholder intends to acquire a controlling interest in the Project Company for USD16 million (the "Investment"), and, pursuant to the Project Management Agreement, will rely on the Company as its nominee to not only assist with such acquisition, but to provide various management services related to the Project on behalf of the Stakeholder (the "Management Services"). These include, among other things, accounting and banking services, planning and budgeting services, assisting with obtaining licensing and permits, and quarterly reporting in respect of engineering work. The Company intends to hire a project engineer and a project accountant (the "Hired Employees") to assist with these services, the aggregate annual cost of which is estimated to be USD $66,000 and will be borne by the Company, which will be via shareholders loans if it doesn't otherwise have cash on hand. Management of AMG does not intend to devote more than 30 to 35% of their respective working time to the Management Services.

The term of the Project Management Agreement is 30 months. If by the end of this term the Stakeholder recoups his investment in the Project Company of $16M USD and realizes an average annual return over the term of the Project Management Agreement of 17.5% (via cumulative dividends), the Stakeholder will remunerate the Company for providing the Management Services by transferring to the Company shares in the Project Company representing not less than a 51% ownership interest. After reasonable inquiry including consultation with applicable legal counsel, the Company is not aware of any applicable laws which would impede the transfer of these shares. In the event the Stakeholder does not recoup his investment and realize a 17.5% annual return, then the Company may not receive any remuneration for providing the Management Services.

Aside from the costs associated with the Hired Employees, the Company's working capital requirements to fulfil its obligations under the Project Management Agreement are expected to be nominal. Other than these costs, the Company has no other financial obligations or commitments in respect of the Management Services. The Project Management Agreement provides that all working capital requirements respecting the Project and of the Company, up to USD $2M (which the Company has agreed not to exceed), including those related to the Company's out-of-pocket costs (other than remuneration paid to the Company's own employees, which includes the Hired Employees), will be paid or reimbursed by the Project Company. It will be a condition to advancing the Investment to the Project Company that the Project Company agrees to set aside USD $2M for this purpose, all of which will be managed by the Company as part of the Management Services.

The entering into of the Project Management Agreement is a "Reviewable Transaction" as defined in TSX Venture Exchange Policy 5.3. As a result, the Company will be required to obtain Exchange approval, and it will be required to satisfy numerous other conditions, including, obtaining disinterested shareholder approval. In the event the Company is unable to satisfy these conditions, pursuant to the Management Agreement it is entitled to terminate the agreement without cost or liability. As a result there can be no assurance that the transactions contemplated by the Management Service Agreement will be completed as proposed, or at all.

The Company's shares are anticipated to resume trading on the Exchange on or about April 1, 2014.

About AMG Bioenergy Resources Holdings Ltd.

The Company has been active in research and development of bio-fuel feedstock and biodiesel conversion with the intent of developing a business producing jatropha as a bio-fuel feedstock in the People's Republic of China and other parts of Asia. The Company is also active in the management of its Jatropha and Eucalyptus plantations in the People's Republic of China. This will continue to be the focus of the Company's business notwithstanding the Management Services to be performed by the Company pursuant to the Project Management Agreement.

ON BEHALF OF THE BOARD

Lee Shoong Lim, Managing Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

This news release may contain "forward-looking information" (as defined in applicable Canadian securities legislation). Forward-looking information is based on expectations, estimates and projections, and it addresses future events and conditions. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make sm...
What’s inside the cloud? Hard work. Cloud operators know the world inside the datacenter is gritty. Vendor marketing speak and cloudwashing quickly melt in the heat of SLAs, uptime guarantees, and users who want it now. In his session at DevOps Summit, Hernan Alvarez, Chief Product Officer at Blue Box Group, will deliver an unvarnished look inside the world of cloud operators, from the perspective of someone who lives it. Attendees get a front-row look into the toolkits and processes that enabl...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), and search analytics (SSA). We also provide Search and Big Data consulting services and offer 24/7 production support for Solr and Elasticsearch.
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility. Internet connectivity has always played a role in customer access to web presence, but in the past few years u...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. J...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.