TORONTO, Nov. 16, 2016 /CNW/ - Phoenix Canada Oil Company
Limited (TSX-V:PCO) ("Phoenix" or the "Company"), today announced
the completion of a comprehensive strategic review of its existing
assets, and current business operations, as well as the formation
of a working group of the Board to evaluate potential operating
assets and targets for acquisition.
The Board of Directors initiated a review of Phoenix's Hydrogen Production System and
SynFuel Technology business segments to determine their viability
and potential to enhance shareholder value. As part of the review,
the Board contracted two leading independent science and technology
firms, Savant Technical and Kirkdale Consulting (the "independent
contractors"). Both independent contractors were selected
based on their extensive experience with the science of renewable
energy, the evaluation of intellectual property, patenting
procedures and techno-economic assessment, as well as their
affiliation with world-class academic institutions, including the
University of Toronto and Massachusetts Institute of Technology (MIT).
Following thorough review of the independent contractors'
findings, the Board of Directors has concluded that it will cease
all further investments in the early stage Hydrogen Production
System as potential returns do not adequately compensate for the
technology risk, and the time and resources necessary to achieve
successful commercialization. The Company will continue to invest
research funding in its proprietary SynFuel Technology system. As
part of SynFuel Technology investment, Phoenix is implementing an aggressive patent
and intellectual property strategy to protect its interests in the
'building block' nature of the technology as it relates to a range
of commercial applications.
"I believe that the combined value of our existing assets
exceeds the valuation we are currently receiving in the market,"
said Dr. Charlotte Moore Hepburn,
interim CEO of Phoenix. "The Board
and I have determined that a course change is necessary to ensure
that our resources are allocated to the areas of the existing
business that offer the highest possible value to shareholders and
to new opportunities that will afford Phoenix growth opportunities in the
future. Drawing on the long and highly productive history of
Phoenix, we will continue to
pursue innovation responsibly, by balancing dynamic high growth
investments with durable, revenue-producing holdings. As we
have always done, we will continue to maintain strict internal
financial controls and will clearly communicate with both our
shareholders and the broader investment community our vision, our
goals and our progress"
Phoenix is currently evaluating
acquisition targets that would generate additional shareholder
value through the purchase of operating assets. Dr.
Moore Hepburn continued, "We are ceasing all investments in higher
risk projects with long and uncertain pathways to
commercialization, like the Hydrogen Production System. As we look
to identify compelling new opportunities, we will actively pursue
quality operating assets that we believe will, over time, build
greater long-term shareholder value."
The recently formed sub-committee of the Board of Directors will
identify and evaluate potential acquisition targets for suitability
utilizing the following criteria: operational assets; EBITDA
positive; strong durable cash generation; and low regulatory and
political risk.
Phoenix has no contractual
binding arrangements at present for new assets, and there can be no
assurances that the Company will consummate an acquisition. The
Company will update shareholders, in a timely fashion, once it has
identified a target, or targets, that it plans to move forward
on.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Dr. Charlotte Moore Hepburn
Interim Chief Executive Officer
SOURCE Phoenix Canada Oil Company Limited
