Business
Progress and ProEx Announce Strategic Business Combination to Create a Premier E&P Growth Company
Creates a resource-play focused, natural gas exploration and production company CALGARY, Nov. 17 ...
About this update from Stillwater Critical Minerals Corp
[{"type":"text","content":"\n\n\n\nCreates a resource-play focused, natural gas exploration and production\ncompany\n\n\nCALGARY, Nov. 17 /CNW/ - Progress Energy Trust ("Progress Trust")\n(TSX-PGX.UN) and ProEx Energy Ltd. ("ProEx") (TSX-PXE) today announced that\ntheir respective Boards of Directors have unanimously agreed to a strategic\ncombination of the two entities (the "Transaction"). The combination will\ncreate a premier natural gas focused, mid-size exploration and production\ncompany under the name of Progress ("Progress" or the "Company").\n\n\n"We believe this is a win-win for two successful companies and their\nrespective securityholders," said Michael Culbert, President and Chief\nExecutive Officer of Progress Trust. "The strategy of the combined company\nwill build upon the outstanding growth prospects of both asset bases and\ntarget an annual growth rate of 10 to 15 percent while paying an annual\ndividend of $0.40 per share, which represents a three percent cash-on-cash\nyield."\n\n\n"We are combining two high-quality asset bases into one premier\ngrowth-focused company," said David Johnson, President and Chief Executive\nOfficer of ProEx. "At a time when scale has increased importance to future\nsuccess in our industry, we are leveraging the strengths of the two entities\nto create even greater value for both sets of securityholders."\n\n\nUnder the terms of the agreement (the "Arrangement Agreement"), Progress\nTrust unitholders and exchangeable shareholders will receive 0.8125 of a ProEx\ncommon share for each Progress Trust unit and each Progress Trust unit\nissuable pursuant to the exchangeable shares of Progress Trust based on the\nexchange ratio of the exchangeable shares on the effective date of the\nTransaction. The Transaction is intended to be tax-deferred for Progress Trust\nunitholders and exchangeable shareholders for Canadian and U.S. income tax\npurposes, although it is intended that Progress Trust unitholders will be able\nto elect to treat the exchange as a taxable event for Canadian income tax\npurposes.\n\n\nIt is the current intention that, following completion of the\nTransaction, Progress will adopt a dividend policy of approximately $0.40 per\nshare per annum, payable quarterly, with the first dividend expected to b...