Given that the nature of the investment is in the acquisition of existing producing projects and the desire of Genesis Energy to maximise returns on investments for shareholders, your investment in Genesis Energy should be considered as a mid to long term financial wealth building strategy.
Transfer Policy / Exit Strategy
Genesis Energy has designed a transfer of shares policy to be as flexible as possible given the type of company investment activity that is involved. The company acknowledges that life can change irrespective of the best intentions an investor might have had when first entering the investment. However, certain commercial realities do exist and the directors must also consider what is best for the investment projects and the shareholders as a group.
Pursuant to the Corporations Act 2001, any prospectus has only a 13 months subscription period. Due to the nature of the Oil and Gas activities that the company invests in, the opportunity for further acquisitions exist, and hence the company intends to re-issue a prospectus every year to 13 months. This reissue would assist in the potential inflow of new investors who would be prioritised to take up shares being offered transfer of shares from pre-existing shareholders.
In order for a pre-existing shareholder to enter the transfer program, the following applies;
No shareholdings less than 12 months old can enter the transfer program. To do so would have significant negative impact upon the capital needs of the investment project.
Notice in writing must be given to the company between the 1st of March and 1st of June, in any year for such shares to be eligible for inclusion in this transfer policy.
Then:
The shareholder will then be placed in a transfer queue, (on a first in best dressed principle), whereby the facilitation of a share transfer with new investors in the new prospectus can be organized by Genesis Energy.
The company gives no warranty of transfer settlement timeframes as new investor prospects are determined by normal sales process parameters.
Important Note: Subject to the restrictions set in the Corpratiosn Act an individual shareholder at their full discretion and in whatever manner and terms they decide can source prospective investors on their own to assume their shareholding, as these shares are transferable.
The only other scenarios available to shareholders to redeem their capital investment are:
If the Company lists on an recognized share market;
If the Company buys back shares (subject to the Corporations Act); or
The Company is wound up.
Genesis Energy intends to offer shareholders a selective buy back program at the three year time period, of up to 100% of capital invested. Ultimately, this selective buy back intention assumes an appropriate financial position of the company to do so.
