It is reported that International diversified resources company, Astra Resources Plc continues to develop at rapid speed with the company now signing a USD 750 million corporate financing agreement with New York City based MidOil USA.
The agreement which will be carried out over five years through investment banking programs conducted by MidOil USA will also result in the formation of a United States financial holding company of which Astra will retain a 90 per cent shareholding.
Astra contribution to the holding company will be the issuance of 100 million pre-prospectus shares which are to be held by a leading New York financial institution acting as custodian of the shares on behalf of the holding company.
MidOil USA will apply its many years of investment banking experience to hypothecate the holding company shareholding in Astra in order to generate cash infusions into the holding company.
Mr Silvana De Cianni Astra managing director says the structure of this agreement is unique, in that MidOil USA will be generating substantial funds for Astra, yet at all times the share security that Astra has issued to the holding company shall always remain under the control of Astra.
MidOil USA Mr Vincent Crandon said the company believes in the Astra Resources business concept and more importantly, believe its management exhibits exemplary skills and dedication in its pursuit of shareholder value and return.
Mr Crandon said “We look forward to working closely with Astra on present and future projects.”
A further critical benefit noted by Dr Jaydeep Biswas Astra CEO is the provision by the holding company to Astra from MidOil USA financing activities with monthly payments resulting in a steady revenue stream for the company over the five years of the agreement.
Dr Biswas said “MidOil USA has a proven track record of providing its clients with the financing it needs in order to complete large scale projects, most recently signing a contract to invest over EUR 3.75 billion in the construction of an international multimodal transport complex in the Lipetsk region of Russia.”
He said that “While Astra intends to use a substantial percentage of the money received to fund the global rollout of its T-Steel technology, other projects and acquisitions will receive funding as required as a result of the MidOil USA financing agreement. Astra will also use the funds to finance mining projects. ”
MidOil USA and its affiliated companies have over 40 years of experience in project finance, investment banking, venture capital, project management and corporate/organizational management. It has a diversified funding portfolio including real estate, transportation and logistics, technology, maritime and petroleum related sectors.
(Sourced from www.proactiveinvestors.com.au)
