Century Petroleum Corp (OTC: CYPE) operates as an oil and gas exploration company, but that focus will soon undergo a dramatic shift. A newcomer to our pages here at Street Register, CYPE is on the verge of a deal that will thrust it into the cement business.
Century entered into a binding letter agreement with a Nigerian-based cement company, Ibeto Cement Company Ltd. The Letter Agreement outlines the proposed terms and conditions pursuant to which Century Petroleum Corp and Ibeto Cement Company Limited will effect a business combination that will result in a reverse takeover of Century Petroleum by the shareholders of Ibeto.
Per the Agreement, Dr. Cletus Ibeto has acquired 70% control of Century Petroleum Corp (OTC: CYPE) Effective May 24, 2018, Mandla J. Gwadiso, newly appointed Chairman and CEO of Century Petroleum Corp has stepped down and Dr. Cletus M. Ibeto has been appointed as the new Chairman of the Board effective immediately.
Ibeto Cement Company is privately held and organized/incorporated under Nigerian law, and is one of the most dominant players in the fast-growing cement industry in Nigeria. To increase its production and packaging capacity, Ibeto is currently developing two cement plants in Nigeria- one in Ebonyi State and one in Cross River State/Abia State. Each of the 6,000 Metric Tons-per-day (TPD) plants are sitting on an abundant deposit/reserve of limestone. The transaction [with Century] will enable Ibeto to raise sufficient capital to dominate the industry in Nigeria and West African sub region as a whole.
The Proposed Transaction will be structured as an amalgamation, arrangement, takeover bid, share purchase or other similar forms of transactions or a series of transactions that have a similar effect with Ibeto acquiring total control of Century Petroleum Corp, whereas, the survivor/legacy of the merger would be called “Ibeto Cement International Corporation”.
Completion of the Proposed Transaction is subject to a number of conditions, including completion of the merger, receipt of all necessary shareholder/shareholding and regulatory approvals, the execution of related/applicable transaction documents, approval of the SEC and Finra for the business combination and change of name.
Ibeto Cement began cement bagging operations at its bagging terminal in Port Harcourt, Nigeria in 2005. It is an ultra-modern bagging plant with a flat-storage capacity of 50,000 metric tons and a production capacity of 1,500,000 metric tons per annum, which translates to a production capacity of 4,000+ metric tons per day.
It has two (2) production lines, each with a capacity of 2,700 of 50kg bags per hour or designed total production capacity of 5,400 of 50kg bags per hour. It also has a third production line – popularly known as the “big/jumbo bag plant” – for big bags of 1,500 kilograms, and also fourth production line for bulk cement powder which is loaded on special cement trucks fitted with tanks and discharge pumps. (Source: Globe Newswire)
In the midst of this recent revelation of the reverse merger with Ibeto, shares of CYPE have taken off from a standstill, rising rapidly in both price and volume in the matter of the past couple of trading sessions. We’ll definitely want to keep an eye peeled for further activity in this stock. We’ll be sure to continue looking out for key events. We’ll stay up on any further developments with CYPE and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CYPE stock, short or long.