Western Potash gets majority stake buyout offer from Chinese firm

Western Potash gets majority stake buyout offer from Chinese firm

10:45 AM, 7th July 2015
Western Potash gets majority stake buyout offer from Chinese firm

VANCOUVER, CANADA: Western Potash Corp said that Beijing Tairui Innovation Capital Management Ltd has agreed to make a strategic equity investment of C$80,000,000 in Western at a price of C$0.3213 per common share of Western for a total of 248,989,860 common shares in the capital of Western, which will result in Tairui holding a 51 percent ownership stake in the company on a non-diluted basis on closing of the transaction.

Closing, subject to approvals, is anticipated to take place on or about 31 Aug, it said.

The per share issue price of C$0.3213 represents a 46 percent premium over the company’s average share price for the 30 trading days ended 3 July, Western said.

Along with the acquisition of the majority stake, Tairui will have the right to appoint four nominees to the board of directors of the company.

The adjustment provisions include adjustments in the event that CBC (Canada) Holding Corp elects to exercise, in whole or in part, and within the prescribed time limit, its pre-emptive right to maintain up to a 19.9 percent share position in Western pursuant to the subscription agreement between CBCHC and the company dated 1 June, 2013.

Proceeds from the investment amount will be used for the development of the pilot plant scale selective solution mining operation in accordance with the previously announced positive scoping study on the company’s 100 percent owned Milestone property in southern Saskatchewan.

© Worldofchemicals News

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