Under the arrangement, Arsenal will acquire all of the outstanding class A common shares of Geocan for a consideration of $0.70 per Geocan share, payable, at the election of each Geocan shareholder, in cash or 0.81 of a common share of Arsenal.
According to Geocan, the consideration to be paid by Arsenal under the arrangement of $0.70 per Geocan share represents a premium of 29% over the five day weighted average trading price of the Geocan Shares to and including August 7, 2008 of $0.541.
The value of the total consideration to be paid by Arsenal for the Geocan shares, based upon a share value of $0.865 for each Arsenal share and taking into account assumed debt of approximately $8 million, is approximately $47.2 million.
