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Knol Resources Corp. Announces Update to Proposed Reverse Takeover with KEWA Financial Inc. and Minimum C$8.4 Million KEWA Financing of Subscription Receipts
VANCOUVER, BC / ACCESSWIRE / September 7, 2016 / Further to its press release dated July 25,...
About this update from Reklaim Ltd
[{"type":"text","content":"Knol Resources Corp. Announces Update to Proposed Reverse Takeover with KEWA Financial Inc. and Minimum C$8.4 Million KEWA Financing of Subscription ReceiptsVANCOUVER, BC / ACCESSWIRE / September 7, 2016 / Further to its press release dated July 25, 2016, Knol Resources Corp. (TSXV: NOL.H) (\"Knol\") is pleased to provide an update with respect to the proposed transaction (the \"Proposed Transaction\") that will result in Knol acquiring all of the common shares (the \"KEWA Shares\") and other securities of KEWA Financial Inc. (\"KEWA\"), as well as provide an update with respect to the KEWA Financing (as defined herein) intended to be undertaken in connection with the Proposed Transaction.\nOverview of KEWA\nKEWA, through its wholly-owned subsidiary KEWA Re Inc. (\"KRI\"), is engaged in the business of providing reinsurance to U.S.-domiciled insurance companies for environmental surety bonds, which guarantee that land used for mining will either be returned to its pre-existing condition or to previously agreed upon standards after mining activities have concluded. KEWA's surety bonding solution provides capital relief to the bonded principals while ensuring their compliance with rapidly increasing environmental remediation obligations. KRI is a Barbados-domiciled and licensed reinsurance company that currently reinsures bond portfolios for two U.S.-domiciled insurance companies.\nManagement of KEWA believes that KEWA has identified a unique opportunity to build a low-risk environmental surety business in an industry perceived to be high-risk, and that KEWA holds a potential advantage relative to its competitors as a result of its management team's previous operational experience in the mining industry where most of the environmental surety bonds it seeks to reinsure are written.\nProposed Transaction\nKnol's common shares are currently listed on the NEX and it is intended that the Proposed Transaction will constitute its \"reactivation\" under the policies of the TSX Venture Exchange (the \"Exchange\") and upon completion of the Proposed Transaction (the \"Closing\") and satisfaction of all the conditions of the Exchange will have its listing transferred from the NEX to the Exchange.\nThe Proposed Transaction is currently expected to be completed by way of a three-cornered amalgamation or similar transaction between Knol and KEW...