Mind Cure Health (CSE: MCUR) is set to enter the energy sector. The firm this morning announced that it has signed a binding letter of intent to acquire LNG Energy Group, in what will become a business combination.
The transaction will amount to a reverse takeover by LNG Energy, whom is currently a private operator that is focused on acquiring natural gas production and exploration assets in Latin America.
The transaction is predicated on Mind Cure conducting a 2.4 for 1 consolidation and changing its name to LNG Energy Group, as well as the completion of a financing and the required regulatory approvals. LNG meanwhile will also be required to acquire a company that holds operating oil and gas field properties in South America, the details for which were not provided.
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In terms of financing, LNG will be required to raise between US$15 and US$30 million in gross proceeds via a brokered private placement, and source bank debt financing of between US$65 and US$85 million. Mind Cure meanwhile will raise up to $4 million via the sale of units at $0.05 per each, with each unit containing one common share and up to one warrant with an exercise price of at least $0.07.
Funds from the financings will be used to acquire the undisclosed natural gas assets in Latin America.
The two parties are to enter a definitive agreement by the end of 2022, with the transaction currently slated to close in the first quarter of 2023.
Mind Cure last traded at $0.055 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
