Under the preliminary purchase terms of the LOI, CAVU and SUN will each own 50% of CAVU’s outstanding common shares, with both of the acquired companies remaining 100% wholly owned subsidiaries of CAVU.
Sun Packing CFO Jon Grossman said the immediate and growing profitability in the oil, gas and water reclamation business of CAVU and SUN’s growing logistics and solar business would give the shareholders of both companies growing revenues, with a target of the company moving to a listed exchange and future dividends.
Sun Packing is a packing and crating company specializing in the O&G and Energy sectors.
Last year, Sun entered into an agreement for the procurement and installation of photovoltaic systems.
Sun intends to purchase and install between 30 and 50MW of photovoltaic solar panels this year, which is estimated to generate revenue of $59m.
SUN is also installing photovoltaic panels in the US state of Missouri on a multiyear agreement.
CAVU is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties.
