Nutech Energy Resources Inc (OTCMKTS:NERG) shares jumped 40.91% to $0.00310 after the company received a buyout offer from TechnoInvest Oil and Gas Ltd.
Nutech Energy Resources Inc (OTCMKTS:NERG), formerly EcoEmissions Solutions, Inc., is a natural gas and oil exploration and development company. It has developed a patented technology for the production of coalbed methane (CBM) without the need to pump water. The company also focuses on acquiring CBM gas wells in the Powder River Basin of Wyoming, and converting those wells into profitable producing assets.
On Tuesday, Nutech Energy Resources Inc (OTCMKTS:NERG) disclosed that it received an unsolicited tender offer for the purchase for its outstanding shares at 2.5 cents per share. This was made by TechnoInvest Oil and Gas Ltd. which is based in Moscow, Russia. TechnoInvest aims to capture and build on Nutech’s patented CBM technology while also taking advantage of the company’s CBM assets in place.
For now, both companies are still in the consultation and negotiation process, although Nutech Energy Resources Inc (OTCMKTS:NERG) has welcomed the proposal positively. “Due to the country’s economic condition in the oil and gas industry, the company is receptive and is strongly considering this offer,” Nutech noted in a press release. The terms have not yet been specified but the company’s advisory boards and attorneys have noted that their evaluation of the offer points to it being in fact a bona fide offer with the ability to close.
A few weeks back, Nutech Energy Resources Inc (OTCMKTS:NERG) announced the removal of its caveat emptor status, allowing share prices to double. This means that buyers are no longer warned against potential information asymmetry, ensuring transparency in trading. The company is also wrapping up its 2015 financial annual report and plans on releasing the results as soon as possible.
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