The CEO and CFO of Day4 Energy Inc. (TSX:DFE) are offering shareholders $500,000 in a bid to take the financially beleaguered company private.
CEO George Rubin and CFO Douglas Keast are offering to buy shareholders out for $500,000.
That’s about twice what the stock is currently worth, but 99.5% of what the company was worth in 2007, when it raised $100 million in an initial public offering.
Co-founded by John MacDonald – co-founder of MacDonald Dettwiler and Associates (TSX:MDA) – and Leonid Rubin, Day4 is deep in debt, its shares are worth less than $0.01, and the company faces delisting from the TSX.
Under a plan floated Monday, George Rubin – Leonid Rubin’s son – and Keast propose to transfer what’s left of Day4’s business and assets to a numbered company – 0941212 B.C. Ltd. – which will assume the company’s liabilities.
Shareholders will be asked to vote on the proposal at an annual and special meeting June 27. Day4’s board of directors have approved voluntary delisting of the company’s common shares from the TSX.
If shareholders approve the plan, the transaction would be executed under a court approved statutory plan of arrangement under the Business Corporations Act.
Once complete, Day4 will have no assets or liabilities other than $500,000 cash.
Day4, which makes solar photovoltaic components, is the most recent victim in a growing line of PV makers that are facing bankruptcy, due to a glut of cheap PV components from China and government subsidies that have been drying up.
A spokesperson for Day4 could not be reached for comment.
