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Alpha Exploration Inc. (TSXV:AEX) and Lakeland Resources Inc. (TSXV:LK) announced the terms of a proposed transaction that will see the two companies merge to form a consolidated, well-financed uranium exploration company.
Alpha Exploration Inc. (TSXV:AEX) and Lakeland Resources Inc. (TSXV:LK) announced the terms of a proposed transaction that will see the two companies merge to form a consolidated, well-financed uranium exploration company.
As quoted in the press release:
Lakeland and Alpha have executed a binding definitive agreement (the “Agreement”) for the Transaction, which was unanimously approved by the directors of both companies. Further, the directors and executive officers for both companies have executed lock-up agreements in support of the Transaction. Both companies anticipate holding a meeting of their respective shareholders to obtain the required shareholder approvals in early September.
The Agreement contemplates that the Transaction will be comprised of the following steps: (i) the common shares of Lakeland will be consolidated on the basis of three (3) old shares for one (1) new share; and (ii) Lakeland will acquire all of the issued and outstanding shares of Alpha pursuant to a plan of arrangement or other similar business combination transaction, based on an anticipated exchange ratio of one (1) share of Lakeland for every two (2) shares of Alpha. The result is shareholders of Lakeland owning approximately 60% of CombineCo, with approximately 40% owned by former shareholders of Alpha.
Dr. Michael Gunning, CEO of Alpha Exploration, commented:
This proposal is good for both shareholder groups, as we believe the combined company can leverage the strategic treasury to facilitate rigorous but aggressive exploration on a merged property portfolio which spans the PLS camp along the southwest margin of the Athabasca Basin to the Black Lake area along the northeastern margin of the Basin”. Jonathan Armes, CEO of Lakeland Resources, adds that, “the solid share structure and anticipated market capitalization for CombineCo will provide a niche in the junior uranium space for potential new investors, underscored by the combined marketing strength and technical expertise of both companies and their track record of success in exploration over the past 30 years.
Click here to read the full Alpha Exploration Inc. (TSXV:AEX) press release.