Supplementary Announcement in Relation to the Formation of Joint Venture Project Company in China and Entering Into Project Cooperation Agreement

Source Press Release
Company Sunshine Oilsands Ltd. 
Tags Corporate Deals, Deals, Refining & Marketing Activities
Date March 04, 2019

The Board of Directors (the “Board”) of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine”) (HKEX: 2012) wishes to supplement the following information:

References were made to the announcement and the clarification announcement, both dated November 9, 2018 (Hong Kong time), and the announcement dated February 28, 2019 (Hong Kong time) issued by the Corporation (collectively, the “Announcements”) in relation to, among others, the formation of joint venture company and joint venture project company in China. Unless defined otherwise, capitalized terms used herein shall have the same meanings as those defined in the Announcements.

The Board wishes to supplement that, the Corporation and the Affiliate (the “Parties”) expect to initially invest up to a total of HKD19,000,000 into the JV Project Company by contributing to its registered capital.  The JV Project Company is in fact a JV Company as established in Chengde City, Hebei Province.  The contribution amount will be HKD9,690,000 by Sunshine and HKD9,310,000 by the Affiliate, representing their proportionate interests held in the JV Project Company, i.e. 51% and 49% respectively.

The initial registered capital contribution of the JV Project Company, i.e. HKD19,000,000, is determined between the Parties after arms’ length negotiation and with reference to the project size as well as the expected initial stage funding requirements of the JV Project Company.  Save for the capital commitments as stated above, Sunshine is not required to make further capital commitments at the current stage. Should the Parties to the JV Project Company are required to make any further capital commitments, further announcement(s) will be made in accordance with the Listing Rules. The capital contribution to be made by Sunshine will be funded by its internal resources.

The Board wishes to emphasize that the aforesaid JV Project Company formation may or may not proceed.  In the event that any formal agreements or arrangements are entered into regarding the JV Project Company may constitute a notifiable transaction under the Listing Rules, the Corporation will make further announcement(s) as and when appropriate.

Shareholders and potential investors are required to exercise caution when dealing in the shares of the Corporation. 

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