Colonial Coal International Corp. (TSXV:CAD) reported an arrangement agreement whereby Colonial will acquire all of the issued and outstanding common shares of Tuya Energy Inc. through an amalgamation between Tuya and a wholly-owned subsidiary of Colonial. Tuya Energy is a private company whose principal property is the Tuya River Coalfield property located between Telegraph Creek and Dease Lake in British Columbia.
As quoted in the press release:
Under the terms of the Transaction, each Tuya shareholder will be entitled to receive 0.5 of a common share of Colonial (“Colonial Share”) for each Tuya Share held. Based on the current outstanding share capital of Tuya, if the Transaction is completed, Colonial will issue approximately 31,716,500 Colonial Shares to acquire all of the outstanding Tuya Shares. Upon completion of the Transaction, current Colonial shareholders and current Tuya shareholders will hold approximately 67% and 33%, respectively, of the total issued and outstanding Colonial Shares.