Reabold Resources plc said that shareholders had backed the equity exchange agreement over its California assets with Daybreak Oil and Gas Inc.
TERMS
The company’s subsidiary Reabold California LLC comprises two licence areas of Monroe Swell and West Brentwood.
The deal will see the subsidiary become a wholly owned subsidiary of Daybreak whose shareholders approved the transaction in a special meeting.
In exchange, Daybreak will issue up to 160,964,489 shares to Gaelic Resources Ltd, a wholly owned subsidiary of Reabold.
“Consequently, Reabold will indirectly be interested in approximately 42% (subject to customary adjustments) of Daybreak’s share capital, as enlarged by the completion of the transaction,” said Reabold in a statement.
“All material conditions precedent associated with the transaction have now been satisfied, and completion of the transaction is expected to take place this week, including the transfer of the consideration shares to Reabold.”