CALGARY, Dec. 20, 2018 /CNW/ – Pieridae Energy Limited (PEA-TSXV) (“Pieridae“) and Ikkuma Resources Corp. (IKM-TSXV) (“Ikkuma“) announce that they have completed the previously announced arrangement pursuant to which Pieridae acquired all of the issued and outstanding shares of Ikkuma by way of a plan of arrangement (the “Arrangement“) under section 193 of the Business Corporations Act (Alberta). The Arrangement was approved by shareholders of Ikkuma (“Ikkuma Shareholder“) at a special meeting of Ikkuma Shareholders held on December 17, 2018 (the “Meeting“) and by the Court of Queen’s Bench of Alberta.
The completion of the Arrangement provides Pieridae with ownership of an extensive area of producing and gas-prone reserve and resource properties situated primarily in the central Alberta Foothills area. Prior to completing the Arrangement certain interests in Cardium light oil-focused Alberta Foothills properties were transferred to a newly formed private corporation named Briko Energy Corp. (“ExploreCo“).
Pursuant to the Arrangement each Ikkuma Shareholder is entitled to receive, for each common share of Ikkuma, 0.1926 of a common share of Pieridae (each such whole share, a “Pieridae Share“), 0.1 of one common share of ExploreCo (each such whole share, an “ExploreCo Share“) and 0.1 of one common share purchase warrant of ExploreCo (each such whole warrant, an “ExploreCo Warrant“), with Ikkuma shareholders holding 100% of ExploreCo upon completion of the Arrangement. The shares of Ikkuma will be delisted from the TSX Venture Exchange.
If you are a registered Ikkuma Shareholder, in order to receive the Pieridae Shares, ExploreCo Shares and ExploreCo Warrants that you are entitled to upon the completion of the Arrangement, you must complete and sign the letter of transmittal which accompanied the Meeting Materials and return it, together with your share certificate(s) and any other required documents and instruments, to Alliance Trust Company, in accordance with the procedures set out in the letter of transmittal. Registered Ikkuma Shareholders may also use the internet site at www.alliancetrust.ca/shareholders/ to transmit their voting instructions.
Concurrent with completion of the Arrangement Pieridae entered into a $50 million senior secured term loan facility (the “Term Loan“) with Alberta Investment Management Corporation (“AIMCo“). The Term Loan bears annual interest at 9.5% and matures on September 30, 2019. Proceeds from the Term Loan were used to repay outstanding indebtedness of Ikkuma.
Founded in 2011, Pieridae, a majority Canadian owned corporation based in Calgary, is focused on the development of integrated energy-related activities, from the exploration and extraction of natural gas to the development, construction and operation of the Goldboro LNG facility and the production of LNG for sale to Europe and other markets. Pieridae is on the leading edge of the re-integration of the LNG value chain in North America. Pieridae has 50,549,763 shares issued and outstanding which trade on the TSX Venture Exchange (PEA).