6 months ago
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Innovative Energy Group Limited, IEG, formerly known as Ciboney Group, has made a profit following the acquisition of IEC Limited.
IEG acquired Ciboney as a shell company in mid-2023, via purchase of the 72 per cent shareholdings in the former resort company from bailout agency Finsac, but IEC is an operational entity acquired towards the end of last year.
The group, which now sells and installs renewable energy products, reported a $12.3-million profit for the second quarter ending November 2024, an improvement from the $3.8-million loss recorded a year earlier.
“This quarter’s consolidated results reflect one month of the subsidiary’s performance,” stated the financials. Additionally, the group closed the quarter with $22.7 million in cash, highlighting its strengthened financial position.
“Takeover of IECL was completed in November,” said IEG Director Wayne Wray in response to Financial Gleaner queries. The acquisition, previously announced as a $2.8- billion transaction, grants IEG control over IECL’s assets, liabilities and operations. The acquisition was funded through a combination of debt instruments and additional equity.
“Capital raise is next on the agenda,” added Wray, who said that an additional public offering of shares would commence before the end of the fourth quarter, which for IEG terminates in May 2025.
IEG’s capital is still negative at $7.9 million in November, but this represents an improvement from the $21.6-million negative capital reported at year ending May 2024.
At the annual general meeting held last month, shareholders approved the issuance of 850 million ordinary shares on the Jamaica Stock Exchange. This would add to the existing 546 million units already listed on the stock market. The new share issuance aligns with the company’s goal to expand its capital base.
The accounting of IECL shows $2.3 billion as intangible assets, or goodwill. On the liability side, the group booked a $1.74-billion loan due to related parties.
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