AMN - NIGERIA: Olocorp transaction completed

Reservoir Capital Corp's (REO) wholly-owned subsidiary Kainji Power Holding Limited (KPHL) last month completed the acquisition of Olocorp Nigeria Ltd. Acquisition of the remaining 40% equity stake in Olocorp will result in the addition of 3.7MW net operating capacity.

This concludes a share sale and purchase agreement and amending agreement among the company, Olocorp, Clara Olo and Olocorp’s major shareholder Eric Olo.

Completion of the agreements is in exchange for consideration of $2.66 million in the form of Reservoir Capital issuing, among other things, a total of 38 million new REO common shares.

Olocorp is a limited liability company registered in Nigeria in 2013 for the main purpose of holding shares in North South Power Company Ltd (NSP), and currently owns 7,297,297 NSP shares. Completion of the transaction makes Olocorp a wholly-owned subsidiary and will add 3.7MW of net operating hydropower capacity to the company.

Also as part of the agreements, in partial satisfaction of an outstanding debt of REO in the amount of $530,000, as evidenced by a convertible loan note issued to Eric Olo, the company entered into a debt settlement agreement with the major shareholder to settle the debt, which saw the company issue 8 million REO shares. The remainder of the debt was satisfied through the issuance of a promissory note by KPHL to Eric Olo in the amount of $200,000.

REO’s asset portfolio comprises minority indirect economic interests in clean power assets, currently four hydropower plants, representing 46.3MW of net operating capacity.

The 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.

The company'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.

www.reservoircapitalcorp.com