Homeland Energy Extends Delivery Date of Shares to GMRadmin
Homeland Energy Group Ltd. wishes to announce that, at the request of GMR Energy Limited, it has agreed to an extension of the completion date by which its subsidiary, Homeland Energy Corp., must complete the repurchase of shares of the Company’s South African operations from GMR Energy Limited of Bangalore, India.
GMR Energy Limited requested the extension to the date of delivery of the 75.79-million shares approved by shareholders on December 30, 2008. The extension will allow the Company to continue discussions with GMR to find an alternative commercial solution to delivery of 75,792,027 shares at $0.455175/share. Any alternative arrangement, if agreed, will be to the economic and commercial benefit of Homeland. Homeland continues to maintain the right to repurchase the 10% holding of its South African operations with the issuance of shares as referred to above.
The original date of delivery was to be January 5, 2009 under the terms of the Share Purchase Agreement between Homeland Energy Corp., Homeland Mining & Energy SA (Pty) Limited and GMR Energy Limited. The new date will be January 20, 2009. If delivered, GMR will own 33.5% of the issued and outstanding shares of Homeland Energy Group Limited.