Durham Resources has agreed, subject to certain conditions, to acquire 1,292,735 common and 438,725 Class A shares of Oakwood Petroleums from Brian S. Ekstrom, Oakwood’s president and chief executive officer, his personal holding company and certain other parties.
The consideration payable by Durham on these transactions is 5.75 Durham shares per Oakwood common share and two Durham shares for each Oakwood Class A share. These considerations, Durham says, will result in the issuance of 8,310,676 Durham subordinated voting shares. If the acquisitions are conclude d Durham, which now owns about 10% of Oakwood’s common shares, will be the holder of just under 40% of Oakwood’s currently outstanding voting shares.
In two related transactions Durham has agreed, subject also to the same conditions, to issue by way of private placement 3,614,286 Durham subordinated voting shares for a consideration valued at approximately $2.7 million.
The transactions are subject to the completion of definitive documentation, the approval of Durham’s board of directors and all necessary regulatory approvals.
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