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Lycos Energy Inc. Announces Closing of Business Combination with Mahikan Oil Corp. and Equity Financing
Calgary, Alberta--(Newsfile Corp. - March 30, 2026) - Lycos Energy Inc . (TSXV: LCX) ("Lyco...
About this update from Lycos Energy Inc
[{"type":"text","content":"Lycos Energy Inc. Announces Closing of Business Combination with Mahikan Oil Corp. and Equity FinancingCalgary, Alberta--(Newsfile Corp. - March 30, 2026) - Lycos Energy Inc. (TSXV: LCX) (\"Lycos\" or the \"Company\") is pleased to announce the successful closing today of its previously announced strategic business combination with Mahikan Oil Corporation (\"Mahikan\") (the \"Transaction\") and fully-subscribed equity financing (the \"Offering\").Closing of Strategic Business CombinationLycos has acquired all the issued and outstanding common shares of Mahikan in an all-share transaction.Under the terms of the Transaction, former shareholders of Mahikan received an aggregate of 29,781,301 common shares of Lycos (\"Lycos Shares\"), issued at a deemed price of $1.20 per Lycos Share. Total consideration for the Transaction was approximately $49.7 million, including the assumption of Mahikan's net debt.The Transaction brings together two complementary heavy oil producers and establishes a larger, contiguous Mannville-focused land base with significant drilling inventory and development potential.Dave Burton, President & Chief Executive Officer of Lycos, commented:\"The Transaction with Mahikan significantly expands Lycos' Mannville focused asset base and development inventory. We believe the Transaction positions the Company for continued production growth and long-term value creation. Looking ahead, Lycos intends to remain active in pursuing additional accretive opportunities, while maintaining a disciplined approach to capital allocation.\"All of the Lycos Shares issued to directors, officers and 10% shareholders of Mahikan, representing an aggregate of 21,150,001 Lycos Shares on closing, are subject to a hold period and will be released as to 1/3 on each of the dates which is four, eight and twelve months following the closing. Lycos Shares issued to all other shareholders of Mahikan are subject to a four-month hold period.Equity FinancingConcurrent with closing of the Transaction, the Company completed its previously announced non-brokered private placement equity financing for gross proceeds of approximately $30.0 million through the issuance of 25,000,000 Lycos Shares at a price of $1.20 per share.The net proceeds from the Offering were used to repay indebtedness incurred in connection with the Transaction and are exp...