logo-loader

Royal Helium closes deal to acquire Imperial Helium

Last updated: 09:01 22 Jul 2022 EDT, First published: 08:51 22 Jul 2022 EDT

Element chart showing He for Helium
Royal controls over one million acres of prospective helium land in southwestern and southeastern Saskatchewan

Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) and Imperial Helium Corp (TSX-V:IHC, OTCQB:IMPHF) have announced the closing of the deal that will see Royal acquire Imperial.

Royal has acquired all of the issued and outstanding common shares in the capital of Imperial in exchange for common shares in the capital of Royal on the basis of 0.614 of a Royal share for each Imperial common share.

The arrangement was approved at the special meeting of Imperial shareholders held on July 12, and by the Supreme Court of British Columbia on July 15, 2022

READ: Imperial Helium strikes an agreement to be acquired by Royal Helium

“We are very happy to have this transaction completed and we thank the shareholders of Imperial for voting in favour by such an overwhelming margin," Royal CEO Andrew Davidson said in a release. "With the transaction completed, we can now shift our full focus to commercializing the Climax and now Steveville helium fields.”

Royal controls over one million acres of prospective helium land in southwestern and southeastern Saskatchewan. All of Royals’ lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations.

With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high-value commodity.

Imperial's shares are expected to be delisted from the TSX Venture Exchange within a few trading days

Imperial will also make an application to cease to be a reporting issuer under applicable Canadian securities laws. In order to satisfy one of the conditions of closing, Imperial issued 4,444,444 Imperial common shares to Cronin Services Ltd prior to closing in order to reduce Imperial's outstanding royalty obligations.

The board of directors of Royal was increased to include one additional director from Imperial's board of directors. Samuel Kyler Hardy – the former co-chair of Imperial – was appointed as a director of Royal following the completion of the arrangement.

Contact the author at Susie@proactiveinvestors.com

Royal Helium's Leap from Exploration to Production: A 2023 Recap and 2024...

Royal Helium CEO Andrew Davidson joined Steve Darling from Proactive to share news the company has announce its initial set of development plans for 2024. With a focus on high grading the existing drilled fields in Saskatchewan, Royal's development efforts will be centred on the completion and...

4 weeks ago