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Lycos Energy Inc. Announces Strategic Business Combination with Mahikan Oil Corporation and $30.0 Million Equity Offering
Calgary, Alberta--(Newsfile Corp. - March 6, 2026) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" ...
About this update from Lycos Energy Inc
[{"type":"text","content":"Lycos Energy Inc. Announces Strategic Business Combination with Mahikan Oil Corporation and $30.0 Million Equity OfferingCalgary, Alberta--(Newsfile Corp. - March 6, 2026) - Lycos Energy Inc. (TSXV: LCX) (\"Lycos\" or the \"Company\") is pleased to announce that it has entered into a definitive agreement (the \"Agreement\") on March 6, 2026 with Mahikan Oil Corporation (\"Mahikan\"), a privately-held, arm's length, heavy oil producer, to complete a strategic business combination in an all-share transaction (the \"Combination\"). Lycos is also pleased to announce a concurrent equity financing to be offered on a non-brokered private placement basis for aggregate gross proceeds of $30.0 million (the \"Offering\" and, together with the Combination, the \"Transaction\").Summary of the CombinationPursuant to the terms of the Agreement, Lycos will acquire Mahikan for total consideration of approximately $49.7 million, including the assumption of net debt, consisting of 29,781,301 common shares of Lycos (\"Lycos Shares\") at a deemed price of $1.20 per Lycos Share, representing 0.60 of a Lycos Share for each common share of Mahikan.Concurrent with the execution of the Agreement, shareholders of Mahikan representing 100% of the outstanding shares, executed letters of transmittal irrevocably accepting Lycos' offer and tendering their shares in connection with the Combination. Following closing of the Transaction, Mahikan will continue to operate as a wholly owned subsidiary of Lycos. The Combination is expected to close on or before March 31, 2026, subject to certain customary conditions and approvals, including the approval of the TSX Venture Exchange (the \"TSXV\"). The Agreement provides for, among other things, non-solicitation covenants. 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, will be subject to a hold period and 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 will be subject to a four-month hold period.The Combination and the Offering will not result in the creation of a new \"control person\" of Lycos, as such term is defined by the policies of the TSXV. In addition, the Transaction will not result in a \"ch...