VANCOUVER, British Columbia, March 11, 2022 (GLOBE NEWSWIRE) -- (CSE: REO) - Reservoir Capital Corp. ("REO" or the "Company") would like to provide an update on the ongoing dispute with a Nigerian shareholder (see the news release filed on the Company's SEDAR profile on May 7, 2021 for further details on the dispute and related litigation). As a result of this dispute, the Company has suffered partial payment of dividends from Nigerian hydro company Mainstream Energy Solutions Ltd (“MESL”) from late 2020 until the present. Of the Company’s $4,850,621 in combined dividend income in 2020 and 2021, $2,450,600 has been withheld and accrued as a result of the dispute. The Company has received assurance from representatives of the disputing Nigerian shareholder that (i) litigation filed in Nigerian court will be dropped, and (ii) that all dividends due to the Company’s wholly-owned subsidiary KPHL from MESL will be released, in line with any agreed terms of settlement, upon confirmation that the cease trade order under which Company has been operating since August 4, 2021 has been revoked.
The cease trade order from the British Columbia Securities Commission and the Ontario Securities Commission was issued for failure to file financial statements and other continuous disclosure documentation. Having recently filed audited financial statements for the period ending December 31, 2020, interim financial statements for periods up to September 30, 2021 and other relevant continuous documentations on SEDAR, the Company believes it is making good progress in meeting the criteria necessary to be issued a revocation of the cease trade order, and by extension, resolving the Nigerian shareholder dispute and receiving the balance of dividend payments being withheld from the Company.
About Reservoir Capital Corp.
REO’s asset portfolio comprises minority indirect economic interests in clean power assets (currently 4 hydro power plants) representing 46.3MW of net operating capacity.
REO’s Vision & Mission is to assemble a balanced portfolio of producing and near-production clean energy assets (with a current focus on Hydro & Geothermal) in growing economies (with a current focus on Africa).
REO’s strategy to achieve its Vision is to approach shareholders of privately held quality assets and offer them diversification, liquidity and exposure to a growing portfolio assembled following a disciplined investment policy.
REO’s investment policy consists essentially in taking carefully selected minority economic interests in quality clean power assets in key geographies, targeting regular dividend income over long periods, while offering the potential for capital gain in the medium term.
Further Information
For more information on the Company, please visit www.reservoircapitalcorp.com. Investors are cautioned that trading in the securities of REO should be considered highly speculative. Additional information on these and other factors that could affect the operations or financial results of REO are included in REO's CSE Listing Statement and most recently filed quarterly report, each of which is filed with applicable Canadian securities regulators and may be accessed through the SEDAR website (www.sedar.com). The CSE have neither approved nor disapproved the contents of this news release.
For any clarification, one may contact:
Lewis Reford
CEO, Reservoir Capital Corp.
Telephone: 416-399-2274
Email: ceo@reservoircap.team
NEITHER THE CSE NOR THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Statements
Cautionary Note Regarding Forward-Looking Statements: This news release contains “forward-looking statements”, and “forward-looking information” under applicable securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs regarding future events of management of REO. This information and these statements, referred to herein as "forward looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements as to management's expectations and the possible completion of intended future investments. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", “poised to”, “hope”, "plans," "intends", "believe" or "continue" or the negative thereof or similar variations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.
