- Royal Helium (RHC) has signed a deal to acquire Imperial Helium (IHC)
- Imperial Shareholders will receive 0.614 of a Royal common share for each common share held
- That equates to a 10.01 percent premium to Imperial shareholders based on the closing price for Imperial and Royal on April 29
- Royal Helium has over 1 million acres helium of land comprised of over 10 separate potential helium fairways that has seen over $20 million of capital investment to date
- Royal Helium is unchanged, trading at $0.43 at 1:45 p.m. ET
Royal Helium (RHC) has signed a deal to acquire Imperial Helium (IHC).
Imperial Shareholders will receive 0.614 of a Royal common share for each common share held.
That equates to a 10.01 percent premium to Imperial shareholders based on the closing price for Imperial and Royal on April 29.
Saskatchewan-based Royal Helium has over 1 million acres of helium land comprised of over 10 separate potential helium fairways that have seen over $20 million of capital investment to date in the form of magnetic surveys, seismic surveys, geoscience and exploration drilling.
The acquisition creates a larger entity with increased access to capital to enable the financing of ongoing exploration, development and processing plant expenditures.
it also increases Royal’s near-term production assets and expected early cash flow.
“We are excited to have entered into this agreement with Imperial. The Steveville property, along with all of the other properties that Imperial has been targeting, make an accretive addition to Royal’s near-term Climax field as well as adding to the expansive properties currently held by Royal. This acquisition would allow Royal to initiate production and significant cash flow from multiple fields near term, accelerate its production profile and enhance future growth for all shareholders,” said Royal Helium President and Chief Executive Officer Andrew Davidson.
Royal Helium is unchanged, trading at $0.43 at 1:45 p.m. ET.