Surge Energy Inc. announced it has acquired Astra Oil Corp. for $160 million.
All the issued and outstanding common shares of Astra were acquired by Surge for aggregate consideration consisting of: 1) the issuance of approximately 229 million common shares of Surge, and 2) approximately $13.5 million in assumed debt.
At the special meeting of Surge shareholders to approve the issuance of Surge Shares pursuant to the Acquisition, held on August 17, 26.5 per cent of the outstanding Surge Shares were represented and the issuance was approved by 95 per cent of the Surge Shares.
Additionally, Surge shareholders voted to approve the consolidation of Surge Shares on the basis of one post-Consolidation Surge Share for each 8.5 pre-Consolidation Surge Shares. At the Meeting, 26.9 per cent of the outstanding Surge Shares were represented and the Consolidation was approved by 93.2 per cent of the Surge Shares voted at the meeting.
Accordingly, immediately after the Acquisition, the 608.5 million pre-Consolidation Surge Shares issued and outstanding will be consolidated to approximately 71.6 million Surge Shares on a post-Consolidation basis.
