Preparations being laid out for regular direct flights en route Prague-Ulaanbaatar www.montsame.mn

Ulaanbaatar /MONTSAME/. On August 21, Minister of Road and Transport Development L.Khaltar received Ambassador of the Czech Republic to Mongolia Jiří Brodský and Head of the Commerce and Economic Section at the Embassy Iva Šustáková.

Mongolia in the third in the world with its liver transplant treatment www.montsame.mn

Ulaanbaatar /MONTSAME/ The 100th liver transplant surgery has been performed successfully by a team of the Organ Transplant Center of the State Central First Hospital and a ceremony for glorifying the team as recording in an honorary book of the hospital took place last Friday, August 21 at the hospital.

9 people treated from COVID-19 in Mongolia www.akipress.com

One more person recovered from coronavirus in Mongolia on August 23, 289 in total, Ministry of Health reported.

Rio Tinto chiefs lose millions over aboriginal site blast www.mining.com

Mongolia mining, energy group to be injected into QT Vascular in S$1b RTO www.businesstimes.com.sg

BALLOON catheter specialist QT Vascular (QTV) is looking to acquire the entire interest in Tengri Coal and Energy (TCE) for S$1 billion in cash and new shares.

If completed, the deal is expected to result in a reverse takeover (RTO) of QTV, it said in a bourse filing on Sunday night.

The Catalist-listed medtech firm will seek approval from the Singapore Exchange (SGX) and its shareholders for the proposed acquisition at an extraordinary general meeting (EGM) to be convened.

Conditions precedent include QTV disposing all its existing assets and liabilities, so that it will become a shell company into which TCE can be injected.

Singapore-incorporated TCE's wholly-owned operating entities are Tengri Petrochemicals and Tsaidam Energy.

Tengri Petrochemicals holds mining licences issued to mine coal deposits in Bayan sourm, Tuv province in Mongolia, while Tsaidam Energy holds licences to construct power plants and energy facilities in the country.

TCE plans to build and operate an electricity supply business in Mongolia.

QTV's board of directors said the RTO will give the company "a new lease of life" and could potentially increase its market capitalisation.

The proposed acquisition provides an opportunity for QTV to venture into a new business area in the coal and energy industry in Mongolia, which has potential for growth and "significant potential upside", the board added.

The target group - including TCE and its subsidiaries - recorded net losses before tax of about US$516,000 in 2019, net liabilities attributable to shareholders of about US$2.2 million and net tangible liability value of about US$2.3 million as at Dec 31, 2019. These figures are based on the group's unaudited consolidated financial statements as at Dec 31, 2019.

However, the target group's financial statements have not taken into account the actual valuation of TCE's assets, which will be based on an independent valuation to be commissioned and completed before the EGM, QTV said.

The independent valuation will take into account all permits and licences to mine half a billion tonnes of coal located in the middle of Mongolia near major infrastructure; all designs, permits and licences to build and operate a 600-megawatt (MW) coal-fired power plant; and all designs, permits and licences to build and operate the required electricity transmission infrastructure.

It will also take into account the executed agreements with a Chinese state-owned enterprise to provide 85 per cent debt financing for the construction of a power plant. TCE has signed an agreement with a New York venture capital firm to provide the rest of the funding for, among others, the remaining 15 per cent for the plant's construction.

In addition, the independent valuation will consider the 25-year off-take agreements for all of the 600MW of generated power from the coal-fired plant. Half of this power will go to the Mongolian government, while the other half will be used for an industrial minerals processing project owned by TCE's seller, subject to compliance with the requirements for interested-person transactions.

QTV has signed a conditional sale and purchase agreement with the seller, Phoenix Capital Enterprises, which beneficially owns TCE.

The S$1 billion purchase price takes into account the assets owned by the target group, including its power plant licence, off-take agreements, as well as indicated and inferred mineral resources.

QTV will fork out a cash deposit, and the balance will be paid by issuing new shares to the seller. For illustrative purposes, assuming the deposit is zero, the purchase price will be fully paid by issuing some 186.27 billion new shares in QTV at about 0.537 Singapore cent apiece.

The illustrative issue price is at a 10.5 per cent discount to QTV's last traded price per share of 0.6 cent on Aug 20.

The purchase price will be adjusted in the event the independent valuation comes up to less than S$1 billion. The parties have also agreed that the shell company value ascribed to QTV shall be S$12 million at all times.

Holders of QTV shares before the completion of the proposed acquisition are entitled to net proceeds of corporate actions, as well as future proceeds arising from the disposal of its drug-coated peripheral product line Chocolate Touch, which may include royalty payments of up to US$16.1 million, and/or future sales proceeds from selling the Chocolate Touch asset to G Vascular. QTV announced last month that it was in the process of selling the product line to G Vascular for up to S$20 million.

As it is likely that the TCE group may be eligible for a mainboard listing on SGX, QTV intends to seek a transfer of its listing from Catalist to the mainboard, concurrent with the completion of the proposed acquisition.

QTV on Sunday also proposed to undertake a share consolidation exercise to allow the company to comply with SGX mainboard rules for a minimum issue price of S$0.50. The ratio for the share consolidation will be determined later by QTV and Phoenix Capital.

Shares of QTV rose 0.1 Singapore cent or 14.3 per cent to trade at 0.8 cent as at 10.36am on Monday. About 55.3 million shares changed hands, making it the third most actively traded by volume on the bourse.

Global Investment Firm Cerberus Acquires Stake in Certain MCS Group Companies www.mcs.mn

ULAANBAATAR, MONGOLIA and NEW YORK – 24 August 2020 – MCS Group (“MCS” or the “Company”), which consists of over 20 companies operating in various sectors such as energy, engineering, mining, real estate, telecommunications, and consumer goods, today announced that it has completed a transaction with an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing. An affiliate of Cerberus has acquired approximately 20% indirect ownership or notes convertible into equity of seven MCS companies operating in the telecommunications and consumer goods sectors.

Founded in 1992, Cerberus manages $45 billion in assets across more than 20 offices around the world. As a long-term investor, Cerberus has a track record of partnering with global companies across sectors, bringing industry-leading operating and technology capabilities and financial expertise to help businesses drive innovation and achieve sustainable growth. Cerberus’ frontier markets platform, Cerberus Frontier, is at the forefront of private investing in some of the world’s fastest growing economies across Asia and Africa. Cerberus Frontier leverages a global platform, in-country presence, and hands-on portfolio management for growing companies in dynamic economies.

Over the past twenty years, MCS has successfully partnered with many foreign investors and brands, introducing new technologies and know-how to the local market as well as adopting international standards of compliance and social responsibility. Odjargal Jambaljamts, Chairman of MCS Group, said, “This partnership will strengthen our financial position and enable us to leverage Cerberus’ operational experience, technology resources, and global best practices as we accelerate MCS’s growth plans. We look forward to working with the global Cerberus team to build on our strengths and market leadership to create an international-calibre Mongolian company, which is an important step as we evaluate future opportunities for a public listing on the domestic and international exchanges.”

Alexander Benard, Co-Head of Cerberus Frontier and Senior Managing Director, commented, “We have an extensive history in Mongolia and are excited about our new partnership with MCS. With Mongolia’s dynamic economy and strong consumer trends, we believe there are many opportunities for MCS’s fast-growing telecommunications and consumer goods businesses. We look forward to bringing our global best practices and industry-leading operating capabilities to help these businesses achieve further success.”

The transaction will not impact the continuity of the businesses or collaboration with MCS’s existing partners. Together with Cerberus, the Company will continue growing its businesses, meeting international standards, and focusing on social responsibility and sustainable growth.

About MCS

Established in 1993, MCS has over 20 subsidiaries involved in energy, engineering, IT, telecommunications, property, mining, consumer goods and healthcare sectors. For more information on MCS Group, visit our website at www.mcs.mn.

About Cerberus

Founded in 1992, Cerberus is a global leader in alternative investing with over $45 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.

Media Contacts

MCS

Media and press office

Solongo.b@mcs.mn

+976 77778833

Cerberus

Ronald Low / Genevieve White

Sard Verbinnen & Co.

rlow@sardverb.com / gwhite@sardverb.com

+852 3842 2200

What is Article 6.2 and why is there a controversy regarding it in Mongolia? www.medium.com

There is this controversy going on the amended Article 6.2 of the Constitution of Mongolia. The previous Article 6.2 stated:
The land, except that in private ownership of the citizens of Mongolia, as well as the land subsoil, forests, water resources, and fauna shall be the property of the State.
Last year there were several Amendments to the Constitution. The controversy stems from one additional word in the Article 6.2:
The land, except that in private ownership of the citizens of Mongolia, as well as the land subsoil, forests, water resources, and fauna shall be the common property of the State. (my translation)
Last year, several small parties capitalized on one word to make protests. They allege that changing from property of the state to the common property of the state, the big parties are trying to sneak in new provisions of the law. They would use this Article to allow foreign companies and other entities to privatize the land.
In Mongolia a foreign person/company cannot own the land, they can lease or get permission for exploration/extraction of minerals. I wrote in more detail here:
How is land allocated to Mongolian citizens?
The legal scholars on the other hand point out that the protests do not make sense as the next article clearly states that only citizens of Mongolia can own land. The word common comes from the 1996’s Law on State and Local State Properties (Төрийн болон орон нутгийн өмчийн тухай хууль). There is a distinction in terminology between State common property(Төрийн нийтийн өмч)and State property (Төрийн өөрийн өмч)
State common property- all the land, mineral resources etc., are the property of the people and is managed by the state.
State property, on the other hand, is the state property, such as, government buildings, state companies etc.
The reason these two are differentiated is because the state property, such as, state companies can be sold, rented etc. They can be sold to Mongolian or foreign companies. That is not the case with the State Common Property.

Kuwait is running out of money to pay public salaries www.rt.com

Kuwait is running out of money for the salaries of public servants and will have no money to cover these after November, the country’s finance minister told parliament.
Unless oil prices rise, the money being used now, withdrawals from the General Reserve Fund, will simply be depleted, Middle East Monitor reports, citing the official, Barak Al-Sheeran.

US FDA announces emergency authorization for convalescent plasma to treat Covid-19 www.cnn.com

(CNN)The US Food and Drug Administration issued an emergency use authorization for the use of convalescent plasma to treat Covid-19 on Sunday, saying the "known and potential benefits of the product outweigh the known and potential risks of the product."

The FDA said more than 70,000 patients had been treated convalescent plasma, made using the blood of people who have recovered from coronavirus infections.
"Today I am pleased to make a truly historic announcement in our battle against the China virus that will save countless lives," President Trump said at a White House briefing. "Today's action will dramatically increase access to this treatment."
Last week, Trump accused some health officials of playing politics regarding an EUA for convalescent plasma. When asked about the FDA not having granted an EUA, Trump said the reason was political.
On Sunday, a source who is close to the White House Coronavirus Task Force told CNN the FDA had reviewed additional data to inform its impending EUA decision. This official has not personally reviewed the data. They added the FDA is under no obligation to consult anyone outside the agency about its decision.

Convalescent plasma is taken from the blood of people who have recovered from Covid-19. At the end of March, the FDA set up a pathway for scientists to try convalescent plasma with patients and study its impact. It has already been used to treat more than 60,000 Covid-19 patients.
However, like blood, convalescent plasma is in limited supply and must come from donors. And while there are promising signals from some studies, there is not yet randomized clinical trial data on convalescent plasma to treat Covid-19. Some of those trials are underway.
Impact of an EUA
The New York Times reported last week an FDA emergency use authorization for blood plasma to treat Covid-19 was on hold after NIH officials intervened. The hold came after a group of federal health officials -- including National Institutes of Health Director Dr. Francis Collins, National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci and Dr. H. Clifford Lane, NIAID deputy director -- stepped in to argue the emerging data on the treatment was too weak, the Times reported Wednesday, citing two senior administration sources.

In a response to CNN, Dr. Anand Shah, FDA's deputy commissioner for medical and scientific affairs, said he couldn't comment but suggested the NIH was out of line.
"In general, NIH is not involved in the decision-making process at the FDA and does not have the entirety of confidential data the FDA uses to make these regulatory decisions," Shah said in a statement sent to CNN.
"We take seriously our mandate to follow the data and science on the review of medical products to prevent or treat COVID-19 based on the agency's established legal and regulatory standards," Shah added, saying the FDA appreciated the work of NIH and would collaborate with its sister agency.
A senior administration official told CNN's Jim Acosta on Sunday the expected emergency use authorization announcement is an important development.
"If you're one of the 35 people out of a hundred who survive severe COVID symptoms because of convalescent plasma, this is certainly a breakthrough," the official said.
"And it's certainly an advancement that over a 5 month period during a pandemic we've got safety data based on 70,000 COVID patients treated with convalescent plasma," the official added.
Ben Corb, public affairs director for the American Society for Biochemistry and Molecular Biology, said in a statement the President was showing an "unwillingness" to listen to medical experts, and that "breakthroughs require the collection of data" to ensure safety and efficacy of treatments.
"This process is necessary to ensure our safety, and to ensure that a treatment isn't worse than the disease," Corb's statement read. "I am deeply concerned by this action, and concerned about the timing."
Demand for plasma 'exceeded anyone's expectation'
Emergency use authorization from the FDA does not require the same level of evidence as full FDA approval, but it can have a significant effect on demand and use of a treatment during a public health emergency.
Dr. James Musser, chair of the Department of Pathology and Genomic Medicine at Houston Methodist, said an emergency use authorization could simplify giving convalescent plasma to Covid-19 patients.
"If they do issue an EUA, my opinion is that that is a good thing for patients going forward," said Musser, who has studied convalescent plasma in Covid-19 patients. "But once again, that is really going to depend up on the parameters of the EUA."
An EUA, which could open the treatment to more patients, could also have the effect of limiting enrollment in clinical trials that determine whether it's effective.

On Thursday, Dr. Janet Woodcock, director of the FDA's Center for Drug Evaluation and Research, said that doctors have treated so many Covid-19 patients with convalescent plasma, it has been difficult to figure out if the treatment works.
"The problem with convalescent plasma is the great enthusiasm about it," Woodcock said in an online conversation about the latest science behind monoclonal antibody treatments and convalescent plasma. "It exceeded anyone's expectation as far as the demand."
Woodcock, who has shifted to lead therapeutic efforts under the Trump administration's Operation Warp Speed, said plasma has shown some promise in early studies, but said Thursday there is still not yet enough evidence that it works.
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Her team counted 162 prospective studies and several more observational studies, but she said only six met the standard that could produce actionable results. There is no randomized clinical trial data yet, she said, but some of those trials are ongoing.
"We continue to have hints that this is an effective treatment in this particular virus," Woodcock said, adding that the NIH will initiate or boost additional trials to find out for sure, she said.
Even if this approach does work, convalescent plasma has limitations.
"There's a limited donor pool -- it goes away as an epidemic wanes," Woodcock said. "It is not a standardized intervention and requires a blood type match for administration, which can be problematic in many settings."
CNN's Jim Acosta, Elizabeth Cohen, Jen Christensen and John Bonifield contributed to this report.

Mongolia reports 5 more COVID-19 recoveries www.xinhuanet.com

Mongolia reported five more COVID-19 recoveries, bringing its total recoveries to 288, country's National Center for Communicable Disease (NCCD) said Saturday.