Business
Navigator Acquisition Corp. to Acquire Brazilian Green Energy Producers Pacto Energia
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2020) - Navigator Acquisition Co...
About this update from Navigator Acquisition Corp.
[{"type":"text","content":"Navigator Acquisition Corp. to Acquire Brazilian Green Energy Producers Pacto EnergiaVancouver, British Columbia--(Newsfile Corp. - September 18, 2020) - Navigator Acquisition Corp. (TSXV: NAQ.P) (\"Navigator\") is pleased to announce that it has entered into a letter of intent dated September 16, 2020, with Pacto Energia S.A. (\"Pacto\") pursuant to which Navigator proposes to acquire a number of subsidiaries of Pacto in exchange for the issuance of securities of Navigator (the \"Pacto Transaction\"). The Pacto Transaction will result in a reverse take-over of Navigator where the existing shareholders of Pacto will own approximately 82.9% of the outstanding common shares of Navigator upon completion of the transaction. Navigator, after completion of the Pacto Transaction, is referred to in this news release as the \"Resulting Issuer\". Upon completion of the Pacto Transaction, it is anticipated that the Resulting Issuer will be a Tier 2 Energy Issuer.Trading in the common shares of Navigator (the \"Navigator Common Shares\") has been halted in accordance with the policies of the TSX Venture Exchange (the \"TSXV\") and will remain halted until such time as all required documentation in connection with the Pacto Transaction has been filed with and accepted by the TSXV and permission to resume trading has been obtained from the TSXV.The Qualifying TransactionNavigator is a capital pool company and intends that the Pacto Transaction will constitute its \"Qualifying Transaction\" under the Capital Pool Companies policy (the \"CPC Policy\") of the TSXV. The Pacto Transaction is arm's length and is therefore not a Non-Arm's Length Qualifying Transaction under the CPC Policy. Accordingly, the CPC Policy does not require Navigator to obtain shareholder approval of the Pacto Transaction.As consideration for the acquisition of a number of subsidiaries of Pacto, holders of issued and outstanding ordinary shares of Pacto (\"Pacto Common Shares\") will exchange their Pacto subsidiaries for Navigator Common Shares, in accordance with an exchange ratio (the \"Exchange Ratio\") to be determined by Navigator and Pacto following receipt of financial advice.The subsidiaries that will go into the Pacto deal detailed:(a) 75% of the stock capital of Capim Branco Energia Solar SPE Ltda; Located in the Minas Gerais state of Brazil our 5.88MWp solar pla...