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Pan American Energy Enters into Arrangement Agreement With Legacy Lithium Regarding Green Energy Spin Out and Announces Shareholder Meeting Date
CALGARY, Alberta, Feb. 08, 2023 (GLOBE NEWSWIRE) -- Pan American Energy Corp. (the “Company” or “Pan American”) (CSE: PNRG) (OTC PINK: PAANF) (FRA: SS6) today a
About this update from Pan American Energy Corp.
[{"type":"text","content":" CALGARY, Alberta, Feb. 08, 2023 (GLOBE NEWSWIRE) -- Pan American Energy Corp. (the “Company” or “Pan American”) (CSE: PNRG) (OTC PINK: PAANF) (FRA: SS6) today announces that it has entered into an arrangement agreement with a newly incorporated, wholly-owned subsidiary of the Company named Legacy Lithium Corp. (“Legacy”) with respect to the proposed “spin out” of the Company’s Green Energy Lithium Property, located in Cane Creek Anticline, Grand County, Utah, USA (the “Property”). Pan American believes that its current share price does not fully recognize the value of the Property, and that by completing the proposed “spin out”, the shareholders of the Company will benefit from unlocking the value of the Property. Additionally, the proposed “spin out” will allow the Company to concentrate its efforts on its other projects – the Big Mack Lithium Project and the Horizon Lithium Project – while Legacy focuses on the advancement of the Property. Terms of the Arrangement Agreement The Company has executed an arrangement agreement (the “Arrangement Agreement”) with Legacy, whereby the Company’s interest in the Property will be “spun out” to shareholders of the Company by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia), subject to the terms and conditions of the Arrangement Agreement. The Company’s shareholders will vote on the Arrangement at a special meeting of shareholders (the “Meeting”) to be held on April 11th, 2023. Prior to the effective date of the Arrangement, the Company plans to transfer all of its ownership interest in the Property, currently held in its wholly-owned subsidiary Pan American Energy, LLC, into Legacy, along with certain related assets, which, together, will be the initial assets of Legacy. To be effective, the Arrangement must be approved by a special resolution passed by at least 662/3% of the votes cast by Company shareholders present in person or represented by proxy at the Meeting, which shareholders are entitled to one vote for each Company share held. The Arrangement involves, among other things, the distribution of 100% of the common shares of Legacy (the “Legacy Common Shares”) to Company shareholders pursuant to the terms and subject to the conditions contained in the Arrangement Agreement, such that each shareholder as of a particular record ...