BRN - Barnwell Industries Inc. Announces Entry into Agreement for the Sale of Water Resources International Inc. for Gross Proceeds of $2000000 | Benzinga
HONOLULU, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE:BRN) ("Barnwell" or the "Company") today announced the entry into an agreement for the sale of Water Resources International, Inc. ("Water Resources"). Water Resources provides deep drilling and well pumping services needed in the exploration and development of groundwater resources for government, commercial and private clients in Hawaii. The sale to a local construction company is for gross proceeds of $2,000,000, subject to customary post-closing price adjustments and the purchaser's completion of due diligence. Proceeds from the sale, which is expected to close in early 2024, will be used for general corporate purposes, with a focus towards reinvestment in the Company's oil and gas operations.
Strategic Rationale
- The transaction supports Barnwell's focus on simplifying its holding company operations and corporate structure.
- The sale of Water Resources streamlines Barnwell as investors will be able to focus on the significant opportunities the Company has identified in its profitable domestic and Canadian oil and natural gas business.
- The combination of the proceeds from the sale of Water Resources and anticipated holding company general and administrative expense savings further strengthens Barnwell's debt-free balance sheet.
Mr. Alexander C. Kinzler, Chief Executive Officer of ...