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.
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.
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