Allana Potash Shareholders Approve Acquisition by Israel Chemicals

Allana Potash Corp. (TSX:AAA) announced that its shareholders and optionholders approved the acquisition by Israel Chemicals (NYSE:ICL,TLV:ICL) at the special meeting held on June 15.

As quoted in the press release:

The Arrangement was approved by the affirmative vote of approximately (i) 96 percent of the votes cast by Securityholders, present in person or represented by proxy at the Meeting; and (ii) 90 percent of the votes cast by shareholders of the Company (the “Allana Shareholders”), excluding votes cast in respect of Allana Shares over which Farhad Abasov, the President, CEO and a director of the Company, Liberty Minerals & Mining Holdings, LLC (“LLM”) and ICL, and their affiliates and joint actors, exercise control or direction. On April 24, 2015, Allana obtained an interim order of the Superior Court of Justice Ontario (Commercial List) under the Business Corporations Act (Ontario) in connection with the Arrangement. Allana is scheduled to return to court on June 19, 2015 to seek a final order to implement the Arrangement. The completion of the Arrangement remains subject to certain other conditions and is expected to be completed on or about June 22, 2015.

Under the terms of the Arrangement, (i) Allana Shareholders, other than LMM, will receive consideration equal to $0.50 in cash per Allana Share exchanged, and LMM will receive the equivalent consideration of $0.50 in ordinary shares of ICL for each Allana Share exchanged; (ii) optionholders of the Company holding Allana options (the “Allana Options”) with an exercise price of less than $0.50 (the “Option Consideration”) immediately prior to the effective time of the Arrangement (the “Effective Time”) will be entitled to receive an amount equal to the difference between the Option Consideration and the exercise price, and such Allana Options will be cancelled at the Effective Time; and (iii) all other Allana Options will be cancelled at the Effective Time, without any payment in respect thereof.

Click here to read the full Allana Potash Corp. (TSX:AAA) press release.