BPI Industries Inc BPR
Shares issued 15,161,614 Jun 12 close $3.05
Thu 14 Jun 2001 News Release
Mr. Jawaharlal Gondi reports
BPI Industries has entered into a letter of agreement to acquire all of the
issued and outstanding common shares of Methane Management Inc. (MMI), a
private Ohio corporation. The principal asset of MMI is a 50-per-cent
interest in a lease dated April 3, 2001, with American Premier
Underwriters/AFC Coal Properties (APU) in respect of the coalbed methane
project located in the Illinois basin in southern Illinois. The corporation
has agreed to issue, subject to regulatory approval, 1,025,000 common
shares of the corporation at a deemed value of $3.05 per share to the
shareholders of MMI, James G. Azlein and William D. Ginn. The vendors are
arm's length to BPI.
The closing of this transaction is subject to a number of conditions
including:
Canadian Venture Exchange approval;
execution and delivery of a formal share exchange agreement on or before
closing;
delivery of an acceptable geological report to CDNX; and
completion of satisfactory due diligence on MMI and its shareholders.
In connection with this transaction, BPI has commissioned a geological
report dated June 12, 2001, on the coalbed methane project. The report,
prepared by Joseph L. Cooper, is being submitted to CDNX for review and
approval.
Upon completion of this transaction, BPI will hold a 100-per-cent interest
in the lease. There are no finder's fees payable in connection with this
transaction.
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This is absolutely mind-boggling! Why would MMI agree to exchange their half of the property for a 1/16th interest in the whole property?!!!
What am I missing here Ron? Maybe there was a typo in the press release and they left out a "0" in the number of shares being issued by BPR.
If this is right, the stock should open at $5. |
