A special meeting of Widespread Energy and Widespread Portfolios was held on 30 March to consider a resolution to approve an asset swap transaction between the companies. The resolution was passed by both companies. All other conditions to the asset swap transaction are also now satisfied and accordingly the transaction has now been completed.
Completion of this transaction has resulted in the following key outcomes:
- Widespread Energy now owns as its sole investment 100% of Mineral Prospecting License 50270 over part of the central Chatham Rise to pursue the development of a rock phosphate resource. This project has been valued under the transaction at NZD$34 million.
- Widespread Energy has divested to Widespread Portfolios all of its interest in Akura Limited, Green Gate Limited and Petroleum Exploration Permit 38526 over the Kotuku oil seeps on the West Coast.
- Widespread Energy has allotted 4,099,627 ordinary shares for 70.587 cents per share to Widespread Portfolios thereby increasing its control percentage in Widespread Energy by 8.1% to 26.26%. Particulars of this allotment are set out below.
The Board of Widespread Energy thanks security holders for their support and now considers that the company’s operations are rationalised and in order to pursue a Canadian initial public offering and TSX listing this year.