SOURCE: Pan Global Corp.

April 17, 2014 06:30 ET

Pan Global, Corp. Provides Part E of Shareholders Analysis Series -- Project Badyar Annual Revenues Forecasted to Be Approximately $1.95 Million USD for 35 Years

CARSON CITY, NV--(Marketwired - Apr 17, 2014) - Pan Global, Corp. (OTCQB: PGLO) (the "Company") today announces the 5th and final part of a five-part series of press releases intended to provide its current and prospective shareholders with an analysis of the Company's opportunity in India's green energy industry, plus additional details about Project Badyar, a 5.7MW small-hydro power plant in northern India currently being acquired by the Company through its staggered purchase of the outstanding equity (and convertible debt if not converted) of Regency Yamuna Energy Limited, an India corporation commissioning the project ("RYEL").

In today's final analysis report, the Company is pleased to present the annual revenue forecasts for Project Badyar.

As previously disclosed in yesterday's Part D Analysis press release, under the Power Purchase Agreement for Project Badyar between RYEL and India's state-owned power company, Uttaranchal Power Corporation Limited, Project Badyar will earn 4.27 INR ($0.0709 USD) per kilowatt hour (kWh) as a gross tariff rate. According to RYEL, the Project annual power production is expected to be in the range of 27.5 million kWh per year. Based on the 4.27 INR gross tariff rate and the expected annual power production, Project Badyar is forecasted to generate annual revenue in the range of $1.95 million USD per year for the life of the Project, which is 35 years under India's Uttarakhand Electricity Regulatory Commission 2013 regulations and the Power Purchase Agreement, starting on Project Badyar's commercial operation date. Actual power generation and revenue will vary from year to year depending on hydrological considerations and the revenue amount in U.S. Dollars will fluctuate based on the INR USD exchange ratio.

Project Badyar is forecasted to generate EBITDA margins of 90% or more with significant cash flow generation due to, as per industry norms, significant amount of the costs of power production are incurred at the construction stage and operating costs for small-hydro power plants being minimal. In the initial years of commercial operations, much of Project Badyar's cash flow will go towards debt repayments, specifically towards a term loan from a major Indian bank. However, the Company expects cash flow and net earnings from Project Badyar to increase over time as the term loan is paid down. The Company expects, upon full consummation of acquiring Project Badyar, to be able to seek financing for additional small-hydro projects through the advantage of having internally generated cash flow.

Photos of Project Badyar can be viewed at the following link:
http://www.slideshare.net/slideshow/embed_code/33051642

Company management commented, "We are excited to share the revenue potential of Project Badyar with our shareholders today. Once construction is completed, the process of getting Project Badyar connected to the power grid is intended to begin immediately so that Project Badyar can commence commercial operations as soon as possible. We believe that once Project Badyar is connected to the power grid, its revenues will be stable for many years to come and thus provide a stable foundation as the Company's first small-hydro plant acquisition. We intend to continue to increase our equity interest in RYEL under our acquisition agreement with RYEL and look forward to continuing our effort towards our long term goal of building shareholder value."

Project Badyar is estimated to be 95% complete and is in the final stages of construction, which is expected to be completed this month, barring adverse weather or unforeseen circumstances.

As previously reported, the Company is in the process of acquiring 100% of Project Badyar through its staggered acquisition of RYEL pursuant to a Stock Purchase Agreement, dated October 28, 2013 (the "Acquisition Agreement"), between the Company's wholly-owned subsidiary, Pan Asia Infratech Corp., RYEL and the RYEL shareholders. Pursuant to the Acquisition Agreement, the Company has agreed to acquire, on a staggered basis, 100% of the outstanding shares and convertible debt (if not previously converted) of RYEL. The Company currently holds a 9.46% equity stake in RYEL.

The Acquisition Agreement contains pre-closing conditions, customary representations and warranties, post-closing covenants and mutual indemnification obligations for, among other things, inaccuracy or breach of any representation or warranty and any breach or non-fulfillment of any covenant.

Further details of the Acquisition Agreement are available in the Company's periodic and current reports filed with the SEC and available on the SEC's website free of charge at www.sec.gov.

About Pan Global, Corp.

Pan Global, Corp., through its wholly-owned subsidiary, Pan Asia Infratech, Corp., is focused on environmentally sustainable energy, infrastructure and technologies. Our aim is to invest in green energy technology and infrastructure to build an inclusive green economy around the world.

For additional information, please visit the Company's website at www.panglobalcorp.com, the contents of which are not incorporated into this press release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The foregoing contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to forward-looking statements. These forward-looking statements include statements relating to, or representing management's beliefs about, our future transactions, strategies, operations, events and financial results. Such forward-looking statements often contain words such as "will," "anticipate," "believe," "plan," "estimate," "expect," "intend," "is targeting," "may," "should" and other similar words or expressions. Forward-looking statements are made based upon management's current expectations and beliefs and are not guarantees of future performance. Our actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others, those risks and uncertainties described in any of our other filings with the SEC. Certain other factors which may impact our business, financial condition or results of operations or which may cause actual results to differ from such forward-looking statements are discussed or included in our periodic reports filed with the SEC and are available on our website at www.panglobalcorp.com under "Investor Info". You are urged to carefully consider all such factors. We do not undertake or plan to update or revise forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this news release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If we make any future public statements or disclosures which modify or impact any of the forward-looking statements contained in or accompanying this news release, such statements or disclosures will be deemed to modify or supersede such statements in this news release.

Disclaimer: This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

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