To close out this week, the OTC saw the birth of a new player via reverse merger, whereby Century Petroleum Corp. (OTCMKTS: CYPE) became Ibeto Cement Company Limited, a cement company based in Nigeria. Shares of the stock took flight on the news as it would appear the Century business had been dead money for quite some time.
Per the two companies’ agreement, “Dr. Cletus Ibeto has acquired 70% control of Century Petroleum Corp. Effective May 24, 2018, Mandla J. Gwadiso, newly appointed Chairman and CEO of Century Petroleum Corp has stepped down and Dr. Cletus M. Ibeto has been appointed as the new Chairman of the Board effective immediately. Dr. Cletus Ibeto was advised by Palewater Advisory Group Inc. on this transaction.”
Century Petroleum Corp. (OTCMKTS: CYPE) had been operating as an oil and gas exploration company, marketing its services throughout the United States.
However, now this stock is going to represent share ownership of Ibeto Cement Company Limited, located in Bundu Ama, Port Harcourt, Rivers State of Nigeria.
According to provided materials, Ibeto began cement bagging operations at its bagging terminal in Port Harcourt in the year 2005. It is an ultra-modern bagging plant with a flat-storage capacity of 50,000 metric tons and a production capacity of 1,500,000 metric tons per annum, which translates to a production capacity of 4,000+ metric tons per day.
It has two (2) production lines, each with a capacity of 2,700 of 50kg bags per hour or designed total production capacity of 5,400 of 50kg bags per hour. It also has a third production line – popularly known as the “big/jumbo bag plant” – for big bags of 1,500 kilograms, and also fourth production line for bulk cement powder which is loaded on special cement trucks fitted with tanks and discharge pumps.
An integral part of the plant facility is a modern purpose-built jetty (Ibeto Jetty) that can take in ships of 190+ meters long with a sophisticated and state-of-art ship-unloaders and mounted at the waterfront on the Jetty to facilitate discharge of bulk cement from offshore/foreign mother vessels.
In line with the Nigerian Backward Integration Policy (BIP) on cement and in response to the Federal Government’s call to increase local production of cement, Ibeto Cement Company Limited acquired the premier Nigeria Cement Company Limited (Nigercem) which has a plant located in Nkalagu, Ebonyi State. The strategic acquisition of Nigercem is aimed at expediting Ibeto Cement’s local production of cement by resuscitating the Nigercem plant and developing the project, as a brand new dry process plant.
Additionally, the Ibeto Cement Company Limited is also developing another 6,000 Metric Tons Per Day (TPD) Cement plant at Cross River State/Abia State of Nigeria.
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Kent A. D. Clark, Chairman of Palewater Global Management Inc., the current parent company of Century Petroleum Corp, stated, “The reverse merger with Century Petroleum Corp is a vital step in becoming a vibrant public company and is a key element of our growth strategy. This reverse merger is a significant accomplishment for the Palewater Global Management Inc. Team.” Clark continued, “We believe the positioning of Century Petroleum Corp. as a publicly-traded company will afford all the greatest opportunity to capitalize on the rapidly growing demand for high quality, lower-cost industrial products around the world.”
Dr. Cletus Ibeto, The Chairman of The Ibeto Group, the parent company of Ibeto Cement Company Limited, Nigeria, commented as well: “As far as I am concerned and with the knowledge I have and what I know in this business, the cement business is an investors’ haven especially in Nigeria and a much more profitable business than crude oil where a lot of people think is the best place to invest. This probably explains why the few people in the business have deliberately created a very strong barrier to entry into the industry for prospective investors.”
Currently trading at a price per share of $0.41, CYPE is a total mystery as far as financials. This is a reverse merger play that now represents a formerly private Nigerian cement company, and we just don’t know what’s underneath the hood at this point. That said, we will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $CYPE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CYPE, either long or short, and we have not been compensated for this article.