Seems that Dr. Kreuter's company GeoT was kind of over-indebted...

Seems that Dr. Kreuter's company GeoT was kind of over-indebted at the time it was taken over by VUL for EUR1.00! Why is that as Dr. Kreuter was already an employee of VUL hence providing his know-how and network in geothermal community in Germany. What was the benefit of buying Dr. Kreuter's company? Well, at least he received back (half of) his money which he lend to his Company GeoT (and will receive the other half at the end of this year). Seem odd, doesn't it.


See press release of 10th February 2021:
Material Terms of Agreement
Vulcan has entered into a binding Term Sheet with the sole shareholder of Geothermal Engineering GmbH (GeoT) to purchase 100% of the shares in GeoT. The sole shareholder of GeoT is Dr. Horst Kreuter, Executive Director of Vulcan. Dr. Kreuter has been excluded from the negotiation process on the Company side, and the transaction has been negotiated at arm’s length. Vulcan will acquire GeoThermal Engineering GmbH for a purchase price of EUR 1.00. Dr. Kreuter will also receive 50% of any payments received from certain debtors to GeoT, if these payments are made to GeoT within 18 months of completion of the acquisition. GeoT owes a debt of approximately €140,000 (plus a nominal amount of interest) to Dr. Kreuter, 50% of which will be paid within three months of completion of the acquisition, with the remaining 50% to be paid by no later than 31 December 2021. GeoT has further debt of approximately 135,000 EUR, plus interest accrued in 2020. Completion of the acquisition is be subject to completion of due diligence to Vulcan’s sole discretion and satisfaction. The Company has confirmed with ASX that shareholder approval for the acquisition is not required under Listing Rule 10.1. The Board (other than Dr Kreuter) has determined that shareholder approval for the acquisition is not required under Chapter 2E of the Corporations Act, because: • the acquisition was negotiated on an arm’s length basis, with Dr Kreuter being excluded from the negotiation process on the Company side; and • the Board considers that the terms of the acquisition are on arm's length or better than arm’s length terms in terms of the consideration payable compared to the value of the assets being acquired and the benefits which will accrue to the Company as a result of the acquisition, and are otherwise on normal commercial terms for transactions of this nature.