XXI Century sells out of Kharkiv JVs

XXI Century Investments (XXIC LN), announced in a press release yesterday, that it has sold its share in JV Starmac Ltd to its partner Rodnex Investments Ltd and its share in Econom Plus LLC to Melon Real Estate LLC for a total consideration of USD 5.0 mln. The consideration will be paid in installments and secured by a pledge of shares and mortgages in immovable property in Kharkiv. The company said profits generated by its Kharkiv projects has been minimal and insignificant and that disposal of its interests there would reduce operating expenses by cutting out lease payments for the land and the need to maintain an office there. XXI Century said it planned to use proceeds from the exit to finance lease payments on its real estate assets, seek to maintain operation liquidity and repay a portion of its financial obligations.