Bayside Corp. follow up
Follow Up to… Bayside. Corp spins out subsidiary company Bayside Petroleum Company, Inc.
On July 31, 2013 Bayside made a formal public announcement stating the following:
” the Board of Directors of the company in a meeting held February 25, 2013 authorized the dividend of its wholly owned subsidiary, Bayside Petroleum Company, Inc., to its shareholders as of February 28, 2013. Further, a Written Consent of Majority of Shareholders, with 82% of the voting stock voting in favor thereof, approved this spin out.”
Firstly, Bayside Petroleum Company, Inc. still remains a subsidiary company of Bayside Corp. While an announcement was made to spin Bayside Petroleum Company, Inc. outside of the Bayside family of companies, no action was taken and ultimately the decision was rescinded by the company’s Board of Directors.
Prior to the meeting that was held on February 25, 2013 the Bayside Corp. management team had been actively discussing the diversification of its business model, and the future of Bayside Petroleum Company. Bayside Petroleum Company was working on an aggressive acquisition plan that was capital intensive. The expansion involved the acquisition of proven oil and gas reserves that the company’s management believed would immediately move the company into revenue stage. The impediment to implementing the plan was how the company would finance it.
Shortly thereafter around the time frame of January 2013 private financing became a possibility for Bayside Petroleum Company’s acquisition plan. However, based on the structure of the financing proposal ownership of Bayside Petroleum Company would have been given to the financing group. Which means that under the terms of the financing proposal Bayside Corp. would no longer be the majority shareholder. Furthermore, under the terms of the financing proposal Bayside Petroleum Company would no longer operate as a subsidiary of Bayside Corp.
At the Board of Directors meeting that was held on February 25, 2013 the Board of Directors authorized this spin out in order to accommodate the terms of the financing proposal while simultaneously creating a dividend for Bayside Corp. While the Board of Directors authorized the spin out and dividend payment to Bayside Corp. at this point no action was taken.
During the course of the months that followed negotiations continued in regards to the terms and conditions of the financing deal. The Bayside management expected financing to be finalized sometime in the fall of 2013, and as a result on July 31, 2013 the company made a formal announcement to advise shareholders of the events that would transpire.
Simultaneous to the negotiations, Bayside was also in the midst of planning for the establishment of a new brand under what would have been a newly formed entity as an energy exporter and marketer. Primarily so that Bayside Petroleum Company and the new entity would have two different and distinguished brand identities.
However, shortly thereafter the terms and conditions of the financing deal were changed by the financing group, and it was determined by the company’s management team that the terms and conditions being offered were no longer conducive to the company’s goals and objectives. At which point the company and the potential financing group parted ways.
Afterwards, in a Board of Directors meeting in September 2013 the Directors voted to rescind the authorization to spin Bayside Petroleum Company outside of the Bayside family of companies. Bayside has not made any formal announcement in regards to this decision but plans to do so soon.
To continue, since then Bayside Petroleum Company has restrategized its plan on how to take advantage of the potential oil and gas lease acquisitions that its targeted. The company has also been in the process of re-branding its image and expects to launch its new website, updated with the most current information, events, changes, and goals as part of Baysides new initiative to increase shareholder transparency.
In 2014, Bayside celebrates 30 years of business success, innovation and vision. At Bayside, we believe that the future is now because our efforts to build shareholder value for the future will have a positive impact on the world around us today.