January 8, 2008
OTC-listed company to become a shipowner
An OTC-listed company that originally specialized in products for female urinary incontinence is apparently about to reemerge as a shipowner.
According to a BusinessWire press release, Korean ship builder NOK-BONG Ship Building Co., Ltd. (NBS) has purchased 20,000,000 unissued shares of common stock in St. Lawrence Energy Corp. (OTC: SLAW), a Delaware corporation, at a price per share of $1.50, for $30 million.
Concurrently St. Lawrence Energy is making an investment in purchasing 400,000 shares of NOK-BONG common stock for $30 million.
As a result, St. Lawrence now owns approximately 33% of NOK-BONG, which was founded in 1997 and that builds vessels of up to 10,000 dwt.
According to Google Finance, St. Lawrence Energy Corp., was formerly Uromed Corporation, a biotechnology company formed for the purpose of focusing on the development, manufacture and marketing of products for the management of urological and gynecological disorders and specifically products for certain types of female urinary incontinence. During the year ended December 31, 2006, the company did not have any operations.
As St. Lawrence Energy, the company's initial business, according to the press release, will involve the ownership of six new ships designed and constructed by NOK-BONG to transport ethanol and other fuels between U.S. ports and worldwide markets in an effective, cost-efficient way. Because of the investment in NOK-BONG, St. Lawrence Energy will be able to obtain the ships from NOK-BONG sooner than otherwise possible, a significant advantage, given the multi-year backlog now existing in shipyards around the world.
The press release quotes Robert Mitchell, CEO of St. Lawrence Energy, as saying "This transaction is an exciting and important event. It launches us into a business that fills a great need--serving and advancing the renewable energy sector."
He added, "We believe our initial shipping business can help solve the problem of transporting ethanol and other fuels inexpensively, safely and effectively. These vessels are designed to leverage the relative cost-effectiveness of shipping, and also prevent the corrosion and evaporation that make ethanol transit in traditional vessels difficult and sometimes impossible."