Lion Energy Corp up 14%, Hits New Yr High as Africa Oil Corp moves to take it over; AOI lower
Lion Energy Corp (LEO.V) is up 14% and has struck a new year high of 38 cents with close to 5 million shares traded after announcing that it has entered into a non-binding letter of intent with Africa Oil Corp. (AOI.TO), a publicly traded oil and gas company listed on the TSX Venture Exchange and NASDAQ OMX, which sets out the basic terms and conditions pursuant to which Africa Oil proposes to acquire all of the issued and outstanding common shares of Lion.
AOI is down 3 cents at $1.98.
"Under the letter of intent the parties will negotiate and enter into a definitive agreement pursuant to which Africa Oil will acquire Lion Energy, by way of a plan of arrangement. The letter of intent provides that each share of Lion Energy will be exchanged for 0.2 shares of Africa Oil. The Company currently has 86,118,177 common shares issued and outstanding, 2,580,000 share options with a weighted average exercise price of $0.16 per share, and 11,445,000 warrants. The Company is also obligated to issue up to 50,000 common shares in another, unrelated transaction. It is proposed that each warrant will be exchanged into an equivalent number of warrants of Africa Oil, adjusted for 0.2:1 ratio noted above," a statement said.
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