October 14th, 2021
As many of you are aware from my previous letter, CyberFuels was planning to close on CyberFuels’ Gateway Terminal acquisition approximately during the first week of October. Since we have not closed yet, I thought I should provide a status update regarding our progress to date as well as our revised closing timeframe agreed to by Seller.
On October 4, 2021, CyberFuels purchased an extension of our closing date to November 19, 2021. In return for the Seller to agree to such extension, we increased our transaction deposit by adding a nonrefundable deposit of $100,000 which will be applied to the overall purchase price. So, there is no additional cost to us by structuring the extension in this manner.
We did this because we have recently been approached by a number of companies needing storage capacity in the Tampa area and for which CyberFuels Gateway Terminal provides an extremely attractive alternative. The added storage capacity will strengthen our borrowing capabilities, including potential better lending terms, as well as accelerate the timing of our cash flows generated from the terminal.
The terminal is staged on 72+ acres on the Old Port Tampa site which includes current as well as previous fuel terminals. The company has been in negotiations for tank storage for multiple 75,000-barrel tanks with several different Fortune 500 Companies. These take or pay contracts are in different stages of completion, but because of the large dollar value of each, it was necessary to take the appropriate time and precautions to get each accomplished correctly as they will serve as collateral for our lenders.
We have made tremendous progress in getting through this process and with that said, we expect to be through this final stage within the time allotted on the extension. I can assure you that the Management Team of CyberFuels is even more excited about this terminal than before and continue to devote a 24/7 mentality towards its purchase and buildout.
President / CyberFuels Inc