Mooncor Oil & Gas Plans Acquisition of Birch Lake Energy

- February 26th, 2014

Mooncor Oil & Gas Corp. (TSXV:MOO) and Birch Lake Energy Inc. (TSXV:BLK) announced that they have entered into a non-binding letter of agreement under which Mooncor will acquire all the common shares of Birch Lake. The companies anticipate the acquisition being completed via a triangular amalgamation.

Mooncor Oil & Gas Corp. (TSXV:MOO) and Birch Lake Energy Inc. (TSXV:BLK) announced that they have entered into a non-binding letter of agreement under which Mooncor will acquire all the common shares of Birch Lake. The companies anticipate the acquisition being completed via a triangular amalgamation.

As quoted in the press release:

The Amalgamation will effectively provide for the acquisition of all of the outstanding equity interests of Birch Lake by Mooncor, indirectly through a wholly-owned Alberta incorporated subsidiary of Mooncor (the ‘Amalgamation Entity’) in a transaction in which the shareholders of Birch Lake will receive shares of Mooncor (the ‘Mooncor Shares’) and, if applicable, convertible securities of Mooncor. As a result of the Amalgamation of Amalgamation Entity and Birch Lake (the ‘Amalgamated Corporation’), Mooncor will become the sole beneficial owner of all of the outstanding shares of Amalgamated Corporation. The exchange ratio for the exchange of securities of Birch Lake will be 1:1.

The Amalgamation is an arm’s length transaction and therefore is not a related party transaction pursuant to Multilateral Instrument 61-101. As a result, no meeting of Mooncor shareholders is expected to be required as a condition to completion of the Amalgamation

Click here to read the full Mooncor Oil & Gas Corp. (TSXV:MOO) and Birch Lake Energy Inc. (TSXV:BLK) press release.

Tags

Leave a Reply