Sold out earlier this week loosing 50% of the investment..... this will definitely send the price further down.....
Agree, at least the due diligence part is ticked the box. Wonder if we get a offer within the next week. Unless they waiting on further due diligence from other suitors to be completed.
But come in BOD let us know so we can stop the derailing shannanigans of some of the cr*p posters on this board
Thu, 21st Oct 2021 07:00
RNS Number : 7371P
Reabold Resources PLC
21 October 2021
21 October 2021
Reabold Resources plc
("Reabold" or the "Company")
Equity Exchange with Daybreak Oil and Gas
Creation of Enhanced California E&P Company
Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, is pleased to announce the signing of a conditional equity exchange agreement between Daybreak Oil and Gas Inc. ("Daybreak"), a US OTC traded oil and gas operator with assets in California (the "Equity Exchange Agreement") (the "Transaction"). The Transaction will result in Reabold becoming a major shareholder of Daybreak via the issuance of new Daybreak shares to Reabold, in exchange for Daybreak acquiring Reabold California LLC ("Reabold California"), Reabold's subsidiary which holds, inter alia, Reabold's licence interests in California.
As per the terms of the Equity Exchange Agreement, Reabold California will become a wholly-owned subsidiary of Daybreak, which, in exchange, will issue 160,964,489 Daybreak shares to Gaelic Resources Limited, a Company wholly-owned by Reabold.
Per the conditions of the Equity Exchange Agreement, prior to completion of the Transaction, Daybreak is required to raise a minimum of US$2.5 million via an equity raise; the proceeds of which will be used to grow production across Daybreak's enhanced portfolio. In addition, Daybreak will be required to complete a conversion of certain of its debt into equity. Reabold will hold up to 46.5 per cent. of the Daybreak's share capital as enlarged by the completion of the Transaction. The longstop date in the Equity Exchange Agreement is 14 February 2022.
Transaction Rationale:
· Creates a self-funded, OTC traded, Californian oil and gas operator, with a strong balance sheet, in which Reabold will have a major shareholding
· Daybreak will utilise its existing in-state management team and expertise to grow the portfolio through development of existing licences as well as considering strategic acquisition opportunities
o Daybreak's management team have 12 years' experience operating in California
o Daybreak is led by James F. Westmoreland
· With a clear focus in California, Daybreak can utilise significant market opportunities for consolidation in the state, creating further opportunities for synergistic growth
· As a result of the transaction, Reabold's interests in California will be exchanged for shares of an OTC traded entity, creating flexibility and funding opportunities for the Daybreak going forward
A further announcement will be made in due course.
Sachin Oza, co-CEO of Reabold, commented:
"This transaction creates liquidity for Reabold and forms a new, cash flow producing business with the skills and capability to capitalise on growth opportunities from its existing portfolio, and attractive acquisitions presented