As a result of the recent announcement of a discovery in the St Lawrence Lowlands, Quebec, Questerre and Terrenex have agreed to an increase in the consideration.
Pursuant to the amendment, Questerre will issue an additional 3.012 million common shares (Questerre shares) for the acquisition. The total consideration will be 18.91 million Questerre shares and the assumption of a C$0.5 million working capital deficit. The net debt component has been paid through a non-refundable deposit on the transaction.
This represents an exchange ratio of 4.70 Questerre shares for each Terrenex common share. Questerre has entered into lockup agreements with directors, officers and certain minority shareholders of Terrenex representing 64% of the issued and outstanding Terrenex common shares. All the other material terms of the arrangement remain unchanged.
