Business
Avalite Inc. Signs Proposed Business Combination Letter with True Productions Services Inc. and New Financing
Avalite Inc. Signs Proposed Business Combination Letter with True Productions Services Inc. and N...
About this update from Canasia Energy Corp
[{"type":"text","content":"\n\n\n\nDec. 8, 2009 (Canada NewsWire Group) -- OTTAWA and CALGARY, Dec. 8 /CNW/ -- Avalite Inc. (\"Avalite\"; TSX NEX - ALV.H) and True Production Services Inc. (\"True\") (a Calgary based private energy services company) today announced that they have entered into a letter agreement dated December 4, 2009, pursuant to which they have agreed to negotiate the terms of a definitive agreement (the \"Definitive Agreement\") to enter into a business combination (the \"Business Combination\") of the two corporations under which Avalite proposes to acquire all the issued and outstanding True common shares (\"True Common Shares\") and True preferred shares (\"True Preferred Shares\"). The parties intend that the Definitive Agreement shall be negotiated and signed by December 15, 2009 and that closing of the Business Combination will occur within 7 business days following receipt of shareholder approval, but no later than March 1, 2010.About the Business CombinationAvalite and True will complete the Business Combination pursuant to a share exchange, amalgamation or plan of arrangement, to be determined after receipt of advice from professional advisors, whereby the continuing corporation (whether Avalite or a new corporation) (hereinafter called \"Avalite\") will be renamed to \"True Production Services Corp.\" or to such other name as the parties may agree upon and which is available for use.Pursuant to the terms of the Business Combination:(a) a new class of Avalite preferred shares (\"Avalite Preferred Shares\")will be created having the same terms and conditions as the TruePreferred Shares;(b) all of the issued Avalite Common Shares will be consolidated on a3.75 for 1 basis (the \"Consolidation\");(c) the holders of consolidated Avalite Common Shares (\"AvaliteConsolidated Shares\") shall receive new Avalite warrants (the\"Avalite New Warrants\") on the basis of one half (1/2) of an AvaliteNew Warrant for each Avalite Consolidated Share held. Each AvaliteNew Warrant shall entitle the holder to subscribe for one AvaliteConsolidated Share at a price of $0.50 for twelve months. If True hasissued True New Warrants pursuant to the Offering (as discussedbelow) on more preferential terms than set out herein, then the termsof the Avalite New Warrants shall be adjusted accordingly;(d) the holders of True Common Shares shall receive one (1) A...