Double Down Resources Ltd DDX
Shares issued 4,769,927 Jun 22 close $0.13
Mon 16 Oct 2000 News Release
Mr. John Tindale reports
Double Down Resources has provided an update on the previously announced share consolidation, acquisition and name change. Under the proposed transaction announced in Stockwatch June 22, 2000, between the company and Meteor Creek Resources, the company has agreed to consolidate its share capital on a 1:4 basis and, immediately thereafter, acquire all of the issued and outstanding shares of Meteor Creek through
the issuance of 5,344,665 postconsolidation common shares of the company. The company currently has 4,769,927 common shares issued and outstanding, and will have approximately 1,192,481 common shares outstanding upon effecting the consolidation and approximately 6,537,146 common shares outstanding upon completing the acquisition. Upon completion of the acquisition, the company and Meteor Creek will
amalgamate under the name Meteor Creek Resources (Amalco). Amalco will pursue the exploration of Meteor Creek's existing oil and gas assets in Prince Edward Island. The company has called an extraordinary general meeting of shareholders for Nov. 7, 2000, at 9:30 a.m. in the company's Calgary Office to vote on the
proposed consolidation, acquisition and other related corporate matters. The consolidation and acquisition are subject to, among other things, receipt of shareholder and Canadian Venture Exchange approvals.
Upon completion of the acquisition, the directors and officers of the company will be the following:
John Tindale -- chief executive officer, president and a director;
David Fisher -- executive vice-president and a director;
David Rutt -- chief financial officer and a director;
Stacey Wenger -- secretary and a director;
Hughes P. Salat -- director; and
Donald Young -- director.
In conjunction with the company's proposed acquisition, Brawley Cathers Limited has agreed to act as sponsor for the company and to act as agent to solicit, on a best efforts basis, offers to raise $4.5-million, the proceeds of which will be used to finance Amalco's exploration program in Prince Edward Island. The offering will consist of a combination of Class A units of the company and Class B units of the company to be sold for 60 cents per unit and 70 cents per unit. Each such Class A unit will consist of one postconsolidated common share and one warrant entitling the holder to acquire one additional common share at a price of 80 cents for a period
of three months from the closing of the offering, and thereafter at a price of $1.00 for a further six months. Each such Class B unit will consist of one postconsolidated common share issued as a flow-through share within the
meaning of the Income Tax Act (Canada) and one warrant. The issuance of the said A units and B units, together with the shares to be issued by the company pursuant to the acquisition, will be qualified by a (final)
prospectus. A preliminary prospectus dated Sept. 26, 2000, has been filed in the provinces of Alberta, Ontario, Nova Scotia, New Brunswick and Prince Edward Island. The offering is subject to, among other things, completion of the acquisition and the receipt of all required regulatory approvals. eom |
