Business
Manganese X Announces Plan to Spin Out Lac Aux Bouleaux Graphite Property
Montréal, Québec--(Newsfile Corp. - March 17, 2020) - Manganese X Energy Corp. ( T...
About this update from Manganese X Energy Corp.
[{"type":"text","content":"Manganese X Announces Plan to Spin Out Lac Aux Bouleaux Graphite PropertyMontréal, Québec--(Newsfile Corp. - March 17, 2020) - Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC2) (TRADEGATE: 9SC2) (OTC Pink: SNCGF) (\"Manganese\" or the \"Company\") today announced its intention to complete a spin-out of its Lac Aux Bouleaux Graphite Property (the \"LAB Graphite Property\"), located in the Province of Québec, into a separate, yet-to-be-formed publicly-traded company (\"Pubco\"). The spin-out transaction (the \"Transaction\"), which is expected to be completed in the third quarter of 2020, is intended to enable the Company to maximize its focus and provide it with the flexibility to meet its unique business needs and further its development strategy.\"Separating the LAB Graphite Property to create an independent publicly traded company will bring greater value to shareholders, enable faster, efficient decision making, and enable the new company to devote much needed focus on the development of the LAB Graphite Property, which is a fairly advanced exploration project,\" said Dr. Luisa Moreno, proposed Chief Executive Officer of Pubco.The Transaction The Transaction is expected to be completed by way of a statutory plan of arrangement (the \"Plan of Arrangement\") under the Business Corporations Act (British Columbia). Pursuant to the Plan of Arrangement, shareholders of the Company (the \"Shareholders\") will exchange their existing common shares in the capital of the Company (each, a \"Common Share\") for the same number of existing shares of the Company (having identical terms) plus a number of common shares in the capital of Pubco (each, a \"Pubco Share\"), likely on a fractional basis as compared to the Company's shares. As of the date hereof, the board of directors of the Company (the \"Board of Directors\") have not determined the number of Pubco Shares to be issued to each Shareholder under the Plan of Arrangement. The Transaction is not expected to result in any change in a Shareholder's holdings in the Company and, upon completion of the Transaction as proposed, the Shareholders will have ownership of the securities of both the Company and Pubco. It is anticipated that the Transaction will be completed on a tax free basis. Anticipated Offering of Pubco equity by Pubco: In connection with the Transaction, Pubco ...