Business
Ucore Announces Intent to Exercise Option to Purchase IBC Advanced Technologies
Halifax, Nova Scotia--(Newsfile Corp. - November 7, 2018) - Ucore Rare Metals, Inc. (TSXV: ...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Announces Intent to Exercise Option to Purchase IBC Advanced TechnologiesHalifax, Nova Scotia--(Newsfile Corp. - November 7, 2018) - Ucore Rare Metals, Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") is pleased to announce its intention to exercise its Option to Purchase IBC Advanced Technologies Inc. (\"IBC\") in accordance with the terms previously agreed to by Ucore, IBC, and majority shareholders of IBC, and embodied in the Option to Purchase Agreement dated March 14, 2015, as amended on June 1, 2016 (the \"OTP Agreement\"). Pursuant to the terms of the OTP Agreement the Company must deliver a Notice of Commencement (\"NOC\") to IBC by March 14, 2019 in order to initiate proceedings to complete the acquisition of IBC. The Company intends to deliver the NOC on or before this date. The delivery of the NOC shall initiate a 60-day due diligence period review during which Ucore shall have the right to conduct a due diligence review of IBC's operations and financial records. Ucore shall have the right to waive the due diligence process in whole or in part, or to deem the due diligence process satisfied in its sole discretion, and to issue to IBC a Notice of Positive Due Diligence (\"NOP\"). Within 60 days of the date of the NOP, the parties are required to complete a purchase agreement (the \"Purchase Agreement\") to affect the transfer of ownership of IBC to Ucore (the \"Purchase Transaction\"). The Company further reports that IBC has requested that the Company waive its rights under the OTP Agreement. The Company does not intend to do so. Relevant terms of the OTP Agreement and the relationship of the parties are as follows:Purchase Price: USD$10 million, to be paid in either cash or shares of Ucore, at the discretion of each IBC shareholder. The IBC shareholder base is diverse and comprised of multiple individuals and entities. The actual cash requirement may be considerably less than the foregoing amount, depending on the proportion of shareholders who elect to obtain shares in Ucore in lieu of cash. No single IBC shareholder will acquire a control position in Ucore pursuant to this transaction.Key Person Incentive Units: 4 million units of Ucore, to be paid to IBC Key Persons. Each unit to consist of one common share of the Company plus ½ Common Share Purchase Warrant. Each Common Share Purchase War...