Cadillac Ventures Inc. and KFG Resources Ltd. Agrees to Pursue an Amalgamation
Cadillac Ventures Inc. (TSXV:CDC)(OTC PINK:CADIF) has announced a letter of intent to amalgamate with KFG Resources Ltd. (KFG/KFGRF), aiming for shareholder approval. The proposed deal involves a one-for-one exchange of KFG shares for Cadillac shares, anticipated to enhance value for both companies. Post-amalgamation, Cadillac plans a share consolidation on a 1-for-3 basis. Directors from both firms believe this merger will lead to a more diversified company with improved cash flows and reduced operational costs, benefiting their respective shareholder bases.
- Proposed amalgamation with KFG expected to create significant shareholder value.
- Share consolidation planned post-amalgamation to optimize share structure.
- Directors believe the merger will improve cash flows and reduce production costs.
- None.
TORONTO, ON / ACCESSWIRE / November 4 , 2020 / Cadillac Ventures Inc. (TSXV:CDC)(OTC PINK:CADIF) and KFG Resources Ltd. (KFG) (KFGRF) have signed a letter of intent to pursue an amalgamation, with the support of both boards, subject to approval by shareholders of each company and TSXV approval. The amalgamation will proceed with an exchange of KFG common shares for Cadillac common shares on a one for one basis.
The companies believe that the amalgamation will create significant value for both shareholder groups. As such, the boards of directors of both companies have agreed specific terms of the proposed transaction will be determined based on corporate, tax and securities laws and other considerations. The principals of both Cadillac and KFG will provide support agreements for the transaction.
Following completion of the amalgamation, Cadillac will proceed to effect a consolidation of its shares, expected to be on a 1 for 3 basis.
The directors of KFG wish to thank their shareholders for their support during the downturn of the oil market over the past several years. We believe that the proposed transaction with Cadillac can create a new and more impressive company with diversified assets, cash flows and reduced costs to make our oil production more lucrative. Both Mr. Haney and Mr. Grassi approve of the transaction and urge all KFG shareholders to follow suit.
The directors of Cadillac believe that the cash flow provided by the oil revenue related to this transaction will allow the company to be more effective in the review and acquisition of additional mineral properties. The directors urge Cadillac shareholders to support the transaction.
Contact Information
For more information regarding Cadillac, please visit the Company's website at www.cadillacventures.com, or call Norman Brewster, President and Chief Executive Officer, at 416 970-3223.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
SOURCE: Cadillac Ventures Inc.
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FAQ
What is the proposed deal between Cadillac Ventures Inc. and KFG Resources Ltd. regarding CADIF?
When is the amalgamation of Cadillac Ventures Inc. and KFG Resources Ltd. expected to be finalized?
What are the expected benefits of the amalgamation for CADIF shareholders?
What share consolidation is planned after the amalgamation of CADIF?
