Canada-based Matrrix Energy Technologies has agreed to acquire all of the assets of Red Dog Drilling used in connection with the latter’s land-based oil drilling and gas drilling operations.
Canada-based Matrrix Energy Technologies has agreed to acquire all of the assets of Red Dog Drilling used in connection with the latter’s land-based oil drilling and gas drilling operations.
Pursuant to the Agreement, MATRRIX will acquire the Purchased Assets for a purchase price of $5,700,000, to be paid as follows: (i) the issuance of 1,573,334 common shares of the Corporation at a deemed price of $0.45 per common share, valued at $708,000; and (ii) $4,992,000 in cash.
Pursuant to the Acquisition, MATRRIX will acquire 4 drilling rigs, and related drilling equipment, consisting of the following:
2 heavy telescopic double drilling rigs complementary to MATRRIX’S existing drilling rig fleet with a depth rating of 4,000 meters;
1 cantilever triple drilling rig with a depth rating of 5,000 meters; and
1 cantilever double drilling rig with a depth rating of 2,800 meters.
Closing of the Acquisition is subject to certain customary conditions, including the approval by the shareholders of Red Dog and receipt of all regulatory approvals, including the approval of the TSX Venture Exchange (“TSXV”).
The board of directors of Red Dog has unanimously determined that the Acquisition is in the best interest of the Red Dog shareholders. Certain Red Dog shareholders, holding approximately 67.3% of the currently outstanding Red Dog shares, have indicated their agreement to vote their Red Dog shares in favour of the Acquisition.
It is anticipated that the Acquisition will close on or about May 31, 2018.
Lightyear Capital Inc. acted as financial advisor to MATRRIX on the Acquisition.
Following the successful closing of the Acquisition, MATRRIX will have 11 drilling rigs consisting of 9 complementary heavy telescopic double drilling rigs, 1 cantilever triple drilling rig and 1 cantilever double drilling rig. As well, MATRRIX will continue to operate its directional MWD division consisting of 16 directional systems, from its field office located in Leduc, Alberta.
MATRRIX did not assume any of the Red Dog head office facilities and will operate the Purchased Assets from its existing Stampede Drilling Ltd. facilities located in Estevan, Saskatchewan.
Subject to the closing of the Acquisition, MATRRIX is looking forward to welcoming the Red Dog rig employees to the Corporation through it Stampede Drilling Ltd. division.
Upon completion of the Acquisition, including the payment of the $4,992,000 cash and the issuance of 1,573,334 common shares, MATRRIX is expected to have 131,487,024 common shares outstanding and approximately $9,200,000 cash.
Source: Company Press Release.