Colonial Coal International Corp. (TSXV:CAD) reported that shareholders of the company, as well as shareholders of Tuya Energy Inc., approved the plan of arrangement whereby Colonial will acquire all of the issued and outstanding common shares of Tuya. Each Tuya shareholder will receive 0.5 of a common share of Colonial for each Tuya Share held. Subject to receipt of all approvals, the transaction is expected to close on or about March 31, 2015.
Colonial Coal announced this arrangement agreement with private company Tuya Energy in January 2015. Tuya’s principal property is the Tuya River Coalfield property located between Telegraph Creek and Dease Lake in British Columbia.
As quoted in the press release:
Colonial Coal International Corp. (TSX VENTURE:CAD) (“Colonial”) and Tuya Energy Inc. (“Tuya”) are pleased to announce that the plan of arrangement (the “Arrangement”), pursuant to which Colonial will acquire all of the issued and outstanding common shares of Tuya (“Tuya Shares”), was approved by shareholders of Colonial and Tuya at their respective shareholders’ meetings held on March 19, 2015. Of the votes cast at the Colonial shareholders’ meeting, 99.7% of Colonial shareholders voted in favour of the special resolution approving the Arrangement (99.5% after excluding the votes cast by directors and officers of Colonial and Tuya). Of the votes cast at the Tuya shareholders’ meeting, 100% of Tuya shareholders voted in favour of the special resolution approving the Arrangement.
Under the Arrangement, each Tuya shareholder will be entitled to receive 0.5 of a common share of Colonial for each Tuya Share held. Tuya is seeking a final order of the Supreme Court of British Columbia to approve the Arrangement at a hearing expected to be held on March 26, 2015. In addition to the approval of the court, the Arrangement is subject to the satisfaction of other closing conditions customary in a transaction of this nature. It is currently expected that, subject to receipt of all approvals, the transaction will close on or about March 31, 2015.