Acquisition of the Minority Interest in Eco's Guyana Subsidiary
Toronto, Ontario (FSCwire) - Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licenses in highly prospective regions in South America and Africa, is pleased to announce that Eco (Guyana) Oil and Gas (Barbados) Ltd. ("Eco Barbados"), a wholly owned subsidiary of the Company, has agreed to acquire the remaining 6% interest in Eco (Atlantic) Guyana Inc. ("Eco Guyana"), following which Eco Guyana will become a wholly owned subsidiary of the Company (the "Acquisition"). Eco Guyana holds a 40% working interest in the Orinduik Block, offshore Guyana, with the remaining 60% held by Tullow Oil (Operator).
The Acquisition is being affected via share purchase agreements entered into between Eco Barbados and the minority shareholders of Eco Guyana (the "Minority Shareholders"). The total consideration paid by the Group will be US$200,000 with US$100,000 payable upon closing, expected to be 27th February 2018, and US$100,000 payable 60 days thereafter, in addition to the issuance of a total of 1,700,384 common shares of the Company (the "Common Shares"). The Common Shares, which will be issued to the Minority Shareholders, represent approximately 1% of the Company's share capital on a fully diluted basis.
The closing of the Acquisition is conditional upon TSX regulatory approval and admission of the Common Shares to trading on AIM.
In connection with the Acquisition, each Minority Shareholder has agreed not to dispose of more than one-third of their Common Shares, issued to them at closing of the Acquisition, for a period of 90 days. An additional one-third of the Common Shares issued to each Minority Shareholder may be disposed of from day 91 after closing, with the remaining Common Shares held by the Minority Shareholders being eligible to be disposed of after 181 days following issuance.
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Source: Eco (Atlantic) Oil and Gas Ltd. (TSX Venture:EOG, LSE:ECO, OTC Bulletin Board:ECAOF)
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