MBAC Fertilizer Corp. (TSX:MBC) announced that it has received non-binding indicative offers and expressions of interest from a number of third parties in response to its strategic review process.
MBAC Fertilizer Corp. (TSX:MBC) announced that it has received non-binding indicative offers and expressions of interest from a number of third parties in response to its strategic review process. Many of those interested parties are active in the fertilizer space and are currently completing their due diligence on MBAC’s assets and are expected to submit binding proposals in Q2. The company’s share price reflected the interest, going up 114.29 percent to $0.075 by 12 pm EST Thursday.
As quoted in the press release:
Once in receipt of the binding proposals, MBAC will evaluate the relative benefits of each binding proposal in consultation with its financial advisor, Deutsche Bank AG, and its senior lenders to identify which is in the best interests of existing stakeholders. As disclosed previously, options under consideration include, but are not limited to, securing a strategic partner, the sale of the Company or its assets as well as other potential value-maximizing transactions. There can be no assurances that the Company will pursue or complete a business transaction or sale under its strategic process nor that a business transaction or sale will provide any value to all or any stakeholders.
In support of its strategic review process and its objective to preserve working capital, and as previously announced, MBAC has put its Itafós operations in care and maintenance mode. The decision also coincides with the low season for fertilizer sales in Brazil. MBAC will re-evaluate operations once fertilizer demand increases and the Company strengthens its working capital position in the coming months.
Click here to read full MBAC Fertilizer Corp. (TSX:MBC) press release.