Atlas Salt (TSXV: SALT) has entered into an arrangement agreement in connection with its previously announced spin out of certain Newfoundland-based assets. The agreement, entered into with Triple Point Resources, concerns the distribution of shares of Triple Point to Atlas’ shareholders.

In total, 23.75 million shares of Triple Point are to be distributed amongst Atlas’ shareholders. The figure implies that current Atlas shareholders are to receive 0.30 Triple Point shares for each share of Atlas held.

Post-distribution, the company has stated that it expects to maintain a 30% stake in the spin-out.

Final approval of the spin-out remains subject to shareholder approval, which is expected to be received in August, as well as regulatory approval. The date of record to receive shares of the spin-out is subject to these final approvals, with Triple Point expected to list on the Canadian Securities Exchange once the arrangement is completed.

Triple Point, once spun out, will hold the Fischell’s Brook Salt Dome Property, a 226 square kilometre project found in southwestern Newfoundland. The property is said to be prospective for a “clean energy hub” as a result of the style of the salt deposit.

Atlas Salt last traded at $3.04 on the TSX Venture.

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.