Business
Creation of Enhanced California E&P Company
Creation of Enhanced California E&P Company.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7371P\n Reabold Resources PLC\n 21 October 2021\n \n \n \n \n 21 October 2021 \n \n \n Reabold Resources plc \n \n \n (\"Reabold\" or the \"Company\") \n \n \n Equity Exchange with Daybreak Oil and Gas\n \n \n \n \n \n Creation of Enhanced California E&P Company\n \n \n \n \n \n \n \n \n Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects\n , is pleased to announce the signing of a conditional equity exchange agreement between Daybreak Oil and Gas Inc. (\"Daybreak\"), a US OTC traded oil and gas operator with assets in California (the \"Equity Exchange Agreement\") (the \"Transaction\"). The Transaction will result in Reabold becoming a major shareholder of Daybreak via the issuance of new Daybreak shares to Reabold, in exchange for Daybreak acquiring Reabold California LLC (\"Reabold California\"), Reabold's subsidiary which holds, inter alia, Reabold's licence interests in California. \n \n \n \n \n \n As per the terms of the Equity Exchange Agreement, Reabold California will become a wholly-owned subsidiary of Daybreak, which, in exchange, will issue 160,964,489 Daybreak shares to Gaelic Resources Limited, a Company wholly-owned by Reabold.\n \n \n \n \n \n Per the conditions of the Equity Exchange Agreement, prior to completion of the Transaction, Daybreak is required to raise a minimum of US$2.5 million via an equity raise; the proceeds of which will be used to grow production across Daybreak's enhanced portfolio. In addition, Daybreak will be required to complete a conversion of certain of its debt into equity. Reabold will hold up to 46.5 per cent. of the Daybreak's share capital as enlarged by the completion of the Transaction. The longstop date in the Equity Exchange Agreement is 14 February 2022.\n \n \n \n \n \n Transaction Rationale:\n \n \n \n \n \n · \n Creates a self-funded, OTC traded, Californian oil and gas operator, with a strong balance sheet, in which Reabold will have a major shareholding\n \n \n \n \n \n · \n Daybreak will utilise its existing in-state management team and expertise to grow the portfolio through development of existing licences as well as considering strategic acquisition opportunities\n \n \n o \n Daybreak's management team have 12 years' experienc...