Lone Pine Resources Canada Ltd. and Arsenal Energy Inc. said Sept. 8 that security holders from both companies approved the companies’ merger, which will take place through a plan of arrangement, at special meetings.
Lone Pine and Arsenal will combine under a new parent company, Prairie Provident Resources Inc. When the merger is complete, shareholders from both companies will receive common shares of Prairie Provident in substitution for their existing shares, with Prairie Provident in turn holding the combined undertakings of Lone Pine and Arsenal.
At closing, Prairie Provident will have a fully-diluted share count of 100 million common shares, of which 77 million will be issued or issuable to former Lone Pine stakeholders. The remaining 23 million shares will be issued to former Arsenal shareholders.
Completion of the arrangement remains subject to certain conditions, including the approval of the Court of Queen's Bench of Alberta. Lone Pine and Arsenal will apply for a final order of the court approving the arrangement at a hearing scheduled for Sept. 9.
The arrangement is expected to close Sept. 12.
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