Razor Energy Corp. and Vector Resources Inc. (TSX-V: VCR.H) have closed business combination which constituted Vector’s qualifying transaction (QT).
Pursuant to QT, the outstanding Razor shares were exchanged for an aggregate of 179,525,708 Vector shares. Subsequent to the completion of QT, Vector effected name change to “Razor Energy Corp.” and consolidation of the common shares on the basis of one post-consolidation Vector share for every 20 pre-consolidation Vector shares.
In connection with QT, Razor has secured a non-revolving term loan facility from Alberta Investment Management Corporation (AIMCo) for a principal amount of $30.0 million.
The term loan facility has a 4 year term with an interest rate of 10% and payable semi-annually. A portion of proceeds were used by Razor to fund the $15 million purchase price in respect of the acquisition of certain oil and gas interests in the Swan Hills area of Alberta.
As additional consideration for the term loan facility Razor issued to AIMCo new Razor shares representing 10.05% of the new Razor shares outstanding.
As a result of QT and shares issued to AIMCo, Razor has approximately 10,187,224 new Razor shares outstanding, on a post-consolidation basis.
Haywood Securities Inc., Canaccord Genuity Corp., and Jett Capital Advisors acted as strategic advisors to Razor in respect of QT.
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