CBLT Investment Becomes Liquid
Burlington, Ontario--(Newsfile Corp. - October 23, 2017) - CBLT Inc. ("CBLT") (TSXV: CBLT) announces a significant potential gain on a legacy investment and reminds shareholders of their own personal potential gains in that same investment.
By way of background, CBLT today owns 658,334 common shares in Tempus Capital Inc. ("Tempus"), a reporting issuer that owns income producing real estate in Southwestern Ontario. Tempus' financial statements, shareholder materials and other disclosure documents can be found at www.sedar.com.
On July 22, 2015, CBLT (then known as Green Swan Capital Corp.) declared a dividend, which was distributed to the CBLT shareholders on August 5, 2015. Each CBLT shareholder was dividended one Tempus share for every twenty CBLT shares held, at a deemed price of eight point five cents ($0.085) per share, and CBLT retained 658,334 Tempus shares for its own account.
Tempus has continued to carry on business in Ontario real estate since then.
On October 17, 2017 Tempus advised it intended to, "…apply immediately to list its common shares on the Canadian Securities Exchange."
"Tempus listing its shares means that CBLT is effectively carrying out an accretive innovative financing for hard dollars," said Peter M. Clausi, CBLT's CEO. "The shareholders who received Tempus shares as a dividend also have the chance to realize their own gains on Tempus' listing. This is a big win for our patient shareholders."
CBLT's adjusted cost base for its Tempus shares for tax purposes is roughly $0.075 cents per share. Under IFRS CBLT's carrying value for those same shares was adjusted upward to $0.125 cents per share during fiscal 2017 to reflect increased value based on industry comparables. Please refer to CBLT's balance sheet and notes for further information.
CBLT's management believes the carrying value of $0.125 cents accurately reflects the present value of Tempus shares, and will be looking to liquidate its shares at a gain as soon as reasonably possible assuming Tempus is successful in listing its shares.
Shareholders are encouraged to consult their own professional advisors for securities, tax and legal advice on this matter.
CBLTis a Canadian mineral exploration company with a proven leadership team, targeting cobalt in reliable mining jurisdictions. CBLT continues to be an efficient steward of its shareholders' capital.
