Cano Briefs on Merger Developments
Cano Petroleum has been informed by Resaca it has postponed its public offering of common stock, due to market conditions. Resaca intended to use the proceeds of the offering to complete a refinancing of the indebtedness of Resaca and Cano, which is one of the remaining conditions precedent to the consummation of the proposed merger between the two companies. As a result of the postponement of the offering, the companies will not be able to consummate their merger within the time frame previously contemplated.
The board of directors of Cano is currently continuing discussions with Resaca regarding alternative financing structures that would permit the consummation of the merger of the two companies, and is also evaluating other options.