The company said in a document filed with the Securities and Exchange Commission that the purchase price will be $50 million as the first increment which may be increased up to $250 million based on actual proven developed production.
In consideration of the actual assignment of the gas lease rights, Emvelco said that it will issue a minimum of 50 million new shares to the seller. The share price will be at an agreed upon price of $1 per share in exchange for all the shares of the entity that will be transferring the gas lease rights.
The company is undertaking due diligence and upon proof of good title to the gas lease rights, the transaction will be presented to the board of directors for approval.
