RockBridge and Crimson reveal merger details
Crimson and RockBridge have revealed details of their proposed merger.
RockBridge Resources has revealed details of the merger agreement formed during business negotiations with Crimson Energy.
The deal will involve RockBridge acquiring all of Crimson's outstanding and issued common stock, for a deemed price of $0.80 (£0.51) per share, with the transaction realising a total cost of $4,362,018 (£2,812,209).
It will be a non-arms-length deal and the closing of the merger will be subject to the Exchange's and regulators' approval.
Officers and directors of Crimson have gone into Lock-up Agreements with RockBridge and have confirmed their intention of voting in favour of the tie-up, with approximately 71.3 per cent of Crimson shares subject to this.
Chairman of the merged firm will be James O'Byrne, who is currently a director and officer in both Crimson and RockBridge.
"The increased focus on light oil plays is a good complement to Crimson's existing liquid rich deep basin gas plays and should be well received by our shareholders," Crimson's current president and chief executive officer Bernie Goruk recently said.
Posted by David Gleck
Source: RockBridge press release, July 9th