The Beard Company Finalizes Disposition of China Fertilizer Operation
January 06 2009 - 4:30PM
PR Newswire (US)
COMPANY EXPECTS TO REPORT GAIN OF MORE THAN $1 MILLION AND $1.5
MILLION INCREASE IN WORKING CAPITAL Oklahoma City, Jan. 6
/PRNewswire-FirstCall/ -- The Beard Company (OTC Bulletin Board:
BRCO) today reported that on December 31, 2008 it entered into an
agreement (the "Agreement") that finalizes the sale of the
Company's entire interest in BEE/7HBF, LLC ("BEE/7HBF") effective
as of such date. BEE/7HBF was a partnership between Beard
Environmental Engineering, LLC, a wholly-owned subsidiary of Beard,
and 7HBF, Ltd. ("7HBF"), a Texas limited partnership. BEE/7HBF
conducts fertilizer manufacturing and sales activities in the
People's Republic of China through its wholly-owned subsidiary,
Xianghe BH Fertilizer Co., Ltd. ("XBH"). With the above-described
transaction now concluded, BEE/7HBF has become a sole member LLC
owned entirely by 7HBF. In December 2007, The Beard Company's Board
of Directors voted to discontinue the China Segment effective
December 31, 2007, and elected to dispose of the Company's
fertilizer manufacturing operations and related interests in China.
Operations of the segment, which produced revenues of $55,000 and
incurred losses of $721,000 for the nine months ended September 30,
2008, were reported as discontinued operations during the year
2008. Under the terms of the Agreement, the Company has
relinquished all of its ownership interests in the partnership to
7HBF and agreed to pay $47,000 to 7HBF for its 50% share of the
accrued interest to December 31, 2008 on an $850,000 note. BEE/7HBF
and XBH will no longer be controlled by the Company and will cease
to be consolidated members of the Beard group. As a result of the
transaction, the Company expects to record a gain in excess of $1
million in the quarter ended December 31, 2008. The transaction
will also improve the Company's working capital by approximately
$1.5 million via the elimination of over $500,000 in assets and
over $2 million in debt and other liabilities of the two
deconsolidated entities. "Finalization of this agreement will
conclude all of the operations of the Company's China Segment,"
stated Herb Mee, Jr., Beard's President. "Although our involvement
in China was not a financial success, our association with 7HBF
resulted in its becoming our largest outside stockholder. The
activities in China also resulted in 7HBF becoming the principal
investor in Golden Bear Drilling & Services, LLC, which may yet
become a successful venture and in which the Company has a small
carried interest. We are particularly pleased that this chapter in
the Company's history has ended with a meaningful contribution to
earnings and an increase in working capital as a result of the
deconsolidation." "As a key part of our Company's turnaround
strategy, we are moving to simplify Beard's operational structure
and to focus upon the opportunities to enhance shareholder value
that we have identified within our minerals exploration and
development investment (Geohedral), our coal reclamation
technologies, and our oil and gas business segment," concluded Mee.
About The Beard Company The Beard Company creates, acquires, and/or
invests in businesses that management believes have high growth
potential and/or above-average profit potential and can enhance
shareholder value. The Company is currently involved in carbon
dioxide (CO2) gas production; oil and gas activities; coal
reclamation activities; e-commerce activities conducted through its
starpay(TM) subsidiary; and minerals exploration and development
through its Geohedral investment. The Company is headquartered in
Oklahoma City and its common stock trades on the OTC Bulletin Board
under the symbol "BRCO". Forward-Looking Statements This document
may include statements that constitute "forward-looking"
statements, usually containing the words "believe", "estimate",
"project", "expect", or similar expressions. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, the Company's lack of
profitability in recent years; the ability to service outstanding
debt and secure capital to fund operations; the ability to
negotiate and execute contracts in connection with the Company's
coal reclamation activities; the outcome of a lawsuit against Visa;
future trends in commodities prices; financial, geological or
mechanical difficulties affecting Geohedral's planned geological
work programs; uncertainties surrounding estimates of mineralized
material; and other risks detailed in Beard's filings with the U.S.
Securities and Exchange Commission. By making these forward-looking
statements, Beard undertakes no obligation to update these
statements for revisions or changes in the future. For Additional
Information, Please Contact: Herb Mee, Jr., President, at (405)
842-2333 or via email at or RJ Falkner & Company, Inc.,
Investor Relations Counsel, at (800) 377-9893 or via email at
DATASOURCE: The Beard Company CONTACT: Herb Mee, Jr., President of
The Beard Company, +1-405-842-2333, ; or RJ Falkner & Company,
Inc., Investor Relations Counsel, 1-800-377-9893, , for The Beard
Company
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