From the CKG PR about the merger:
"Pursuant to the business combination, Chesapeake will issue for every one (1) outstanding common share of American Gold (i) 0.29 Chesapeake common shares (“Shares”), (ii) 0.145 Chesapeake common share purchase warrants (“Warrants”) and (iii) 0.29 Chesapeake rights (“Rights”). Based on 30,855,525
outstanding common shares of American Gold this would result in the issuance by Chesapeake of approximately 8,948,102 Shares, 4,474,051 Warrants and 8,948,102 Rights.
Each Warrant will entitle the holder to purchase one (1) Chesapeake common share at $8.00 for a term of 5 years. Each Right will, on or after such date (the “Exchange Date”) as the average London PM fix closing trading price of gold for the trading days on such market during any 90 day period is equal to or greater than US$850 per ounce, be exercisable for one (1) Chesapeake common share at $1.00 for a term of five years (which will be extended by one year if the trading price for gold has been at or above US$850 per ounce on any day during the last six months of the five year term).
In the Letter Agreement Chesapeake has agreed to use its best efforts to obtain a stock exchange listing for the Warrants and Rights. If the proposed listing of the Rights is not obtained, within 60 days after the closing of the business combination, the exercise price of the Rights will be reduced to nil. The five year term will be extended by 3 months if the trading price for gold has been at or above US$850 per ounce on
any day during the last 90 days of the five year term." |
