(ARMM Inc., 18.Aug.2022) — ARMM Inc. (OTCQB: ARMM) entered into a binding letter of intent with Current Energy and Renewables Corp. (“CER”), a supplier of renewable and traditional energy to commercial and industrial clients in deregulated markets.
CER was established in 2017 and is headquartered in Scottsdale, Arizona.
David Coburn, CER’s Chief Executive Officer, stated, “This strategic combination allows the company to leverage select ARMM shareholders who have created significant value within the global energy spectrum and help accelerate and expand CER’s footprint within deregulated energy markets.”
Mark Lawson, Armm’s Chief Executive Officer, stated, “Our existing shareholder base has deep expertise within the full energy spectrum. Sustainability and renewable energy is a key part of the energy transition story at a juncture where we are at the doorstep of a global energy crisis.”
Armm’s single largest shareholder, Clarion Finance Pte Ltd has a history of significant value creation within the full energy spectrum:
- Clarion was an early investor in InterOil Corp (IOC) which drilled the largest vertical onshore gas well in the world, and was subsequently acquired by ExxonMobil for $2.5bn.
- Pacific LNG Operations Ltd. was incorporated by Clarion in order to hold a direct interest in the concessions in Papua New Guinea (PNG), and subsequently sold its interest in the PRL-15 gas field in 2014 for $900mn plus further payments.
- Pacific Rubiales (PRE) has become the largest independent oil and gas exploration and production company in Colombia in just five years. The company was co-financed by Clarion in 2008.
CER is supported by a multi year credit facility from Boston Energy Trading and Marketing (BETM), a wholly owned subsidiary of Mitsubishi Corp of Japan. With the backing of BETM, CER is developing long term Purchase Power Agreements (PPAs) in wind, solar and storage as part of its energy transition strategy.
In 2022, CER received the Public Utilities Commission approval in Pennsylvania and is completing the licensing process with the major utilities in Pennsylvania, allowing it to execute renewable and traditional energy contracts. CER also initiated the approval process to expand an reach into New York, New Jersey, Illinois and Texas as part its national expansion strategy.
Upon closing of the transaction, the combined entity, which will retain the name of Current Energy & Renewables Corp., will be led by seasoned chief executive officer, David Coburn, Founder, and CEO of the current CER.
Under the terms of the business combination, CER will combine with a subsidiary of ARMM, and will become a publicly traded entity under the name “Current Energy and Renewables Corp.” The transaction is expected to close in the second half of 2022, subject to, among other things, the approval by Armm stockholders, satisfaction or waiver of the conditions stated in the business combination agreement, and other customary closing conditions, including a registration statement being declared effective by the U.S. Securities and Exchange Commission (SEC) and approval by Nasdaq to list the securities of the merged company.
ARMM intends to effect a spin-off of the company’s firearms lifestyle platform, and respective intellectual property (“IP”), through a wholly-owned subsidiary. The newly formed subsidiary, (“NewCo“), will act as the holding company for ARMM’s platform and IP. ARMM intends to distribute all the common shares pro rata to the company’s and CER’s shareholders of record on closing of the Transaction.