BVI-registered Homeland Energy Group Ltd., a coal producer focused on exploration and development in South Africa, concluded its Rights Offering which was announced in June 2010. The company issued a total of 169,088,393 common shares for total proceeds of $8,454,419.65.
BVI company's largest shareholder, GMR Energy Limited, acquired total amount of 159,862,800 common shares. As a result of this transaction, GMR became the holder of 263,119,895 common shares of Homeland Energy, which represent approximately 55.84% of its common shares. GMR's subsidiary Crossridge Investments Limited owns and controls 30,096,012 common shares of the company. So, after the transaction both GMR and Crossridge hold an aggregate amount of 293,215,907 common shares of Homeland Energy, which represent 62.22% of its common shares.
According to the press release, GMR has acquired the shares for long term investment purposes, and currently does not intend to acquire ownership or control of any additional shares of the BVI company.
The proceeds of the Rights Offering will be used to repay the $7,993,140 loan made by GMR's subsidiary, and for general working capital.
