Barnwell Industries, Inc. (BRN) experiences an increase of 7.88% in premarket. However, the last trading session concluded at $2.41 with a decline of 5.12%.
Disposition of Spirit River Assets
BRN announced on 14th July 2021 that Barnwell Canada has entered into and executed a purchase and sale agreement with an independent third party. At current Canadian dollar exchange rates, the acquisition price for Barnwell Canada’s holdings was approximately US$1,037,000, subject to customary adjustments. This included adjustments to reflect July 8, 2021. Lastly, BRN plans to record again on this transaction in the fourth quarter of 2021, which will be realized in the company’s fourth quarter.
Now what?
BRN has sold another non-core oil and gas property in this transaction. The proceeds from the transaction will be invested in future oil and gas acquisition and drilling prospects, as well as other company ventures. Until tax clearances are received, 50% of the revenues will be kept in escrow for Canadian tax authorities.
First Quarter Earnings by BRN – What’s the update?
BRN released the first-quarter earnings on 10th February 2021. The company announced net profits of $584,000 and a net loss of $414,000. In addition, the company is glad to report that general and administrative expenditures reduced by $311,000, or 21%.
BRN’s working capital at the end of the quarter totaled $5,370,000, including $5,334,000 in cash and cash equivalents. In addition, the Kukio Resort Land Development Partnerships paid us a net cash payout of $199,000 in January 2021.
BRN: Agreement With MRMP Stockholders
On 28th January 2021, BRN stated that it has reached an agreement with MRMP-Managers LLC for collaboration and support in connection with a prospective proxy battle for the election of directors to the Board of Directors. The Company will nominate its existing slate of directors for election to the Board at the approaching 2021 annual meeting of shareholders. This includes three of the MRMP candidates and two new directors elected in 2020.
What’s next?
The company is happy to have arrived at such a positive conclusion. This collaboration and support agreement continues the Company’s tremendous progress over the last year toward improving and simplifying both our governance and operations. Lastly, this also demonstrates the Board’s commitment to acting in the long-term interests of our investors.
