- Lida Resources Inc. (LIDA) signs a letter of intent (LOI) to acquire securities of Purpose ESG Holdings Inc. for $4 million
- Lida will continue the business of ESG Holdings after completing the reverse takeover and will also constitute a “change of business”
- Lida will issue to the existing shareholders of ESG Holdings up to 16 million common shares at a deemed price of $0.25 per share
- Before the closing, ESG Holdings will start a private placement offering for gross proceeds of $2 million
- Lida Resources Inc. (LIDA) is unchanged trading at $0.38 per share as of 12:56 p.m. EST
Lida Resources (LIDA) has signed a letter of intent (LOI) to acquire all issued and outstanding securities of Purpose ESG Holdings Inc. for $4 million.
Lida will continue the business of ESG Holdings after completing the reverse takeover and will also constitute a “change of business”.
Lida is a Canadian-based mining company and ESG Holdings is an investment issuer with a portfolio focused on electrification, food tech, hydrogen power, carbon capture, and other technologies.
Lida will issue to the existing shareholders of ESG Holdings up to 16 million common shares at a deemed price of $0.25 per share. Before the closing date, ESG Holdings will start a private placement offering of up to 8 million common shares for gross proceeds of $2 million. Therefore, the 16 million payment shares are made up of 8.1 million common shares issued to current shareholders and another 8 million issued to new investors in ESG Holdings.
The replacement warrants issued will be exercisable for $0.10 per warrant and will also award 750,000 restricted stock units to current holders.
If the ESG Holdings private placement is fully subscribed, there will be 18.8 million common shares issued and outstanding of the new combined entity. Former shareholders will own 85.32 per cent and current shareholders of Lida will hold 14.68 per cent.
Lida Resources Inc. (LIDA) is unchanged trading at $0.38 per share as of 12:56 p.m. EST.