Royal Helium Receives Approval For Purchase Of Imperial Helium
Royal Helium (TSXV: RHC) is set to grow its holdings considerably over the course of the next few weeks, with the confirmation last night by Imperial Helium (TSXV: IHC) shareholders that they approve of the previously proposed arrangement to be acquired by the Saskatchewan-based exploration firm.
Imperial Helium shareholders yesterday overwhelming supported the proposed acquisition by Royal, with 86.7% of votes saying yes to completing the transaction, with 35.75% of shareholders represented at the meeting. The vote provided the required greenlight for the entities to continue with the proposed merger.
Initially announced in early May, the transaction will see Imperial Helium acquired for what amounts to a 10% premium over the price of its shares at the time of the announcement. Imperial shareholders are to receive 0.614 shares of Royal for each share held.
“The addition of Imperial and its Steveville and Steveville East assets to Royal’s significant project portfolio of helium properties in Saskatchewan is highly opportunistic for Royal Helium. With the current spike in the prices for helium, Royal will be putting the two Steveville wells along with Royal’s Climax wells on production as soon as possible. Two separate processing facilities for Saskatchewan and Alberta will be commissioned with delivery and completion anticipated for Q1 of next year,” commented Royal Helium CEO Andrew Davidson.
The transaction now needs to obtain a final order from the BC Supreme Court to close the transaction. Final closing is expected to occur later this month, at which point Imperial will be delisted from the TSX Venture.
Royal Helium last traded at $0.355 on the TSX Venture.
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