Xtract Energy has entered into an agreement with Oakville Capital ET, LLC, which is the second largest shareholder of Elko Energy Inc. after Xtract. Under the terms of the agreement, Xtract will acquire Oakville's entire holding in Elko, amounting to 13,200,000 ordinary shares, being approximately 13.2% of the issued stock of Elko.
The consideration is comprised of a cash payment of US $1,342,000 and one new Xtract share for every Elko share. The transaction is scheduled to complete on January 11, 2010 at which time application will be made for the 13,200,000 new Xtract shares to be admitted to trading on AIM and this is expected to become effective on January 15, 2010.
Commenting on the transaction, Andy Morrison, CEO of Xtract said, "This further acquisition of Elko shares represents another step in the transformation of the company from a passive investor into one with more active involvement with its underlying assets."
Following completion, Xtract's holding in Elko will be 49,975,000 ordinary shares, representing approximately 50.02% of the issued capital of that company, and there will be a total of 824,965,026 Xtract ordinary shares in issue.
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