JMG Decides Against Merger with JED
JMG Exploration, Inc. said that it has decided not to pursue the previously announced transaction for a share exchange with JED Oil Inc., in which it would have merged with JED's wholly owned US subsidiary and shareholders of JMG would have received two common shares of JED for every three shares held in JMG.
The decision was made by the Special Independent Committee of JMG's board of directors comprised of the three directors who are independent of JED. Joe Skeehan, Chairman of the Special Independent Committee and JMG's CEO, stated "with the material changes to both companies and general market conditions since the letter of intent was signed in February, the transaction no longer makes sense from a financial point of view for the JMG shareholders. JMG will now concentrate on alternatives to the transaction with JED, which could consist of finding another merger partner or sourcing full time officers and staff for JMG."
JMG also announced that it has received the resignation of its Chief Financial Officer, David C. Ho. Ho was also CFO of JED and recently announced his resignation from JED, at which time he also resigned as an officer of JMG. Donald P. Wells, Chairman of JMG's Audit Committee, will act as interim CFO until a replacement is sourced.
- JED Not Happy with Remaining Bids for Alberta Assets, Mulls Options (Jan 14)
- JED Oil Files 4th Default Status Report, Closes Asset Sale (Dec 31)
- JED Oil Raises $4MM by Selling Ferrier, Wizard Lake Assets (Dec 10)
Company: JMG Exploration, Inc. more info
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