Business
Sahara Energy Ltd. Provides Information Respecting Change of Business
Calgary, Alberta--(Newsfile Corp. - February 23, 2021) - On January 25, 2021 Sahara Energy Ltd...
About this update from Capitan Investment Ltd.
[{"type":"text","content":"Sahara Energy Ltd. Provides Information Respecting Change of BusinessCalgary, Alberta--(Newsfile Corp. - February 23, 2021) - On January 25, 2021 Sahara Energy Ltd. (TSXV: SAH) (the \"Company\" or \"Sahara\") announced that its Board of Directors had approved a \"change of business\" pursuant to the policies of the TSX Venture Exchange (the \"TSX-V\"). The Transactions (as defined below) as contemplated by Sahara, will change Sahara's industry sector of operations under the policies of the TSX-V from \"oi & gas\" to a hybrid of \"real estate\" and \"investment\".BackgroundTo date, Sahara's business has focused almost entirely on oil and gas exploration, evaluation and development in Western Canada. Over the past number of years the value of Sahara's oil and gas assets has progressively declined and the Company's rigorous attempts to sell its assets and identify new opportunities in the oil and gas sector in Alberta and Saskatchewan have yielded no viable results. Sahara's market capitalization is currently valued at a significant discount to its total asset value and the Company has been in a net loss position for at least the past two years. In addition to the existing oil and gas market failing to generate sufficient positive return for investors, the long-term outlook for the industry, and Sahara should it continue to focus its business on its oil and gas assets, is not ideal. As a result of these issues, Sahara's management team concluded that it was in the best interests of the Company and its shareholders for management to explore a more diverse array of options so as to optimize the deployment of the Company's cash assets. Given the current expertise and connections of management, management's desire to have Sahara's funds deployed in relatively secure investments while still offering a return on investment for shareholders, as well as management's view of the ongoing opportunities available in Alberta and Saskatchewan, Sahara has determined that it is time to refocus its business in the areas of real estate and investing. In this regard, Sahara has identified the U.S. real estate market, particularly in the areas of student housing and multifamily residential properties, as an ideal area in which it could successfully undertake the first of its investments in the wider refocusing of its business. Change of Business T...