British Columbia-based Continental Energy sold a 51 percent stake in California-based services company Visionaire Energy (VEN) to Norway-based Visionaire Invest Wednesday for $1.2 million.
VEN is a holding company that owns a 49 percent equity interest in VTT Maritime, with 25 percent net to VEN, and a 41 percent equity interest in RADA Engineering and Consulting with 21 percent net to VEN.
Both VTT and RADA are privately owned, offshore oil and gas service providers based in Bergen, Norway.
Continental said larger than projected operating loses from VEN and its partially owned subsidiaries and the need for more capital investment in those companies triggered the sale.
Continental acquired its 51 percent stake in VEN from Visionaire Invest in 2013 in a non-cash share-swap transaction for 20 million common shares worth $1,000,000.
Visionaire Invest will pay Continental $200,000 cash for the sale and transfer back the 20 million common shares at closing.
Closing is subject to the approval of Visionaire’s shareholders.
As part of the sale agreement Continental’s CEO Richard L. McAdoo and CFO Robert V. Rudman resigned from VEN’s board of directors and CEO of Visionaire Invest Johnny Christiansen resigned from Continental’s board of directors.
All resignations are effective immediately.
Continental is an international energy investment company.