The Corporation’s Articles of Incorporation, in accordance with the requirements of ANCSA, provided for the issuance
of 100 shares of common stock at the inception of the Corporation to each Alaska Native enrolled in the Bristol Bay
region as follows:
• Class A shares to Alaska Natives enrolled in the Bristol Bay region who are also enrolled in one of the village
corporations in the region.
• Class B shares to Alaska Natives enrolled in the Bristol Bay region who are not enrolled in one of the village
corporations in the region. The stockholders of Class B stock are referred to as “at-large” shareholders.
This stock, stock dividends or distributions, and any other stock rights may not be sold, pledged, assigned, subjected
to a lien or judgment execution, treated as an asset in a bankruptcy proceeding or otherwise alienated except in
limited circumstances by court decree, by gift to certain relatives and by death. All holders of stock have the same
economic rights.
During the period that restrictions on stock alienation are in effect, the stock carries voting rights only if the holder is
an Alaskan Native or a descendant of an Alaskan Native, as defined in the amended ANCSA. As of March 31, 2019
and 2018, there were 9,915 and 9,732 holders of Class A stock and 953 and 955 holders of Class B stock, respectively.
Among these stockholders, 9,746 and 885 hold voting stock at March 31, 2019, and 9,584 and 892 hold voting stock
at March 31, 2018.
The outstanding stock of the Corporation will remain subject to restrictions on alienability unless a decision is made
by shareholders pursuant to ANCSA to terminate the restrictions.
Under Section 7(i) of ANCSA, the Corporation is required to distribute annually 70% of the net resource revenues
received from the Corporation’s timber and subsurface estate to all 12 Alaska Native Regional Corporations organized
pursuant to ANCSA. Under Section 7(j) of ANCSA, the Corporation also redistributes 50% of revenues received under
Section 7(i) of ANCSA to the Corporation’s village corporations and at-large shareholders. For the years ended March
31, 2019, 2018 and 2017, $11,319,000, $10,375,000 and $6,713,000 was redistributed to village corporations and
at-large shareholders, respectively. Gross 7(i) revenues are presented net of these amounts.
In June 1982, an agreement was reached among the Native regional corporations settling several years of litigation
concerning the meaning and application of Section 7(i). The settlement agreement sets past liabilities and establishes
rules for the future by which distributable revenues will be determined. These consolidated financial statements comply
with the settlement agreement.
(3) ACQUISITIONS
(A) PANHANDLE POWER SOLUTIONS, LLC
In March 2019, the Corporation acquired 100% of Panhandle Power Solutions, LLC, a construction company.
The following table summarizes the consideration paid for Panhandle Power Solutions, LLC and the amounts of estimated
fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):
CONSIDERATION:
Cash
$
Holdback payable
Contingent consideration arrangement
FAIR VALUE OF TOTAL CONSIDERATION TRANSFERRED
54
BBNC FY2019 ANNUAL REPORT
4,518
400
3,600
8,518