The Agreement calls for a restructuring of Patriot Mechanical Handling Inc. Delaware. The current board of directors will resign in favor of the Kensington Industries board of directors, the company will change its name to Kensington Industries, Inc. The company will take a new direction toward manufacturing products for heavy industry. In an Agreement signed simultaneously, the new directors reached agreement to transfer the Patriot Mechanical Handling businesses, along with all of the liabilities and debt that had been accrued, to Global Marine Energy, plc. in return for 38,400,000 shares of the Company's common stock.
Patriot's CEO, Mr. Paul Findlay, said, "Global Marine Energy Plc (GME) as part of its ongoing strategic review had expressed an interest in reacquiring the Patriot operating companies which GME had provided with substantial working capital loans. The board was presented with an opportunity to merge with an ongoing profitable business. This merger together with the transfer of the Patriot Mechanical Handling Business gives shareholders of the newly named Kensington Industries Inc. ongoing value whilst removing the substantial indebtedness to GME."
Mr. Wm Schluter, the new President, stated, "We are pleased to report that we were successful in negotiating this agreement. This agreement will relieve the company of millions of dollars of liabilities to GME, which will be transferred to the Patriot businesses. The stock will be returned to the treasury of the company, thereby allowing the new business of the company to proceed with a positive balance sheet and ongoing operations."
Kensington Industries is a specialty manufacturer of products for heavy industry based in the Midwest.
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