9°c Light rain showers
15°c Mainly sunny
The Canadian Press - ONLINE EDITION
ProSep sells joint venture for $5 million, starts review of alternatives
MONTREAL - ProSep Inc. (TSX:PRP) has signed a deal to sell its 51 per cent investment in a South Korean joint venture to its partner, Kolon Group, for $5 million and says it's looking at other strategic moves.
The oil and gas technology company said Tuesday it has formed a special committee to review financing opportunities and other strategic alternatives, which could include more asset sales or a sale of the company — although it noted no decision has been made.
ProSep said after reimbursement of a related $1 million debenture, the sale of its stake in the ProSep Kolon joint venture will give it approximately $4 million that will be used as working capital.
"Although revenues grew in 2012, the company recently implemented a cost optimization program and reduced headcount in order to provide annual operating savings of almost 15 per cent of operating expenses and divested its investment in its South Korean joint venture," president and chief executive Jacques Drouin said in a statement.
"These initiatives provide additional liquidities to support projected growth with the objective of reaching profitability."
Licensing agreements will remain in place and both companies will continue operating as commercial partners.
One of ProSep's wholly-owned subsidiaries has been in breach of covenants under its borrowing facilities.
The company said it is in negotiations with the bank in order to obtain a waiver.
Shares in the company last traded for 31 cents on the Toronto Stock Exchange.
More Business
- Back to Top
- Return to Business
More Business
(1 of 32 articles for today)
Creative industries can fuel a city's economic engine
3:17 AM 0
Poll
Most Popular Business
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Yahoo buys blogging forum Tumblr for $1.1 billion in boldest move yet under CEO Mayer
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Bridging the gap
- Judiciary Committee nearing final big decisions in shaping immigration bill
- AP source: Treasury told White House IRS planned to disclose targeting of political groups
- Target opens Manitoba stores
- Harper heads to South America to check out membership in new trade group
- Ex-'Pegger seeks to grow local businesses
- At least 12 dead following blast at explosives factory in eastern China
- Transcona transformation
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Driving downtown development
- 3 Ford owners sue in federal court, saying EcoBoost engine is defective
- Chinese court sentences entrepreneur to death in latest crackdown on underground banking
- Microsoft update to address Windows 8 complaints, confusion will be free; to be called 8.1
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Lakeview pumped about Hecla resort
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Ex-'Pegger seeks to grow local businesses
- There are lots of I's in 'team'
- Late deal in workplace sex-harassment case
- More than a new boss
- Harper heads to South America to check out membership in new trade group
- US Treasury secretary says he has begun tapping federal retiree pension fund to avoid default
- Creative industries can fuel a city's economic engine
- Transcona transformation
- Diversification spurs Exchange Income's growth
- Ex-'Pegger seeks to grow local businesses
- Driving downtown development
- Late deal in workplace sex-harassment case
- More than a new boss
- Bridging the gap
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- There are lots of I's in 'team'
- City to get a touch of glass
- Transcona transformation
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
- Local firms seek Competitive Edge in aerospace industry
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.