Cequence Energy Ltd. (TSX:CQE) entered into an agreement to acquire Simonette and Resthaven Oil and Gas Properties from Donnybrook Energy Inc. (TSXV:DEI) for CAD 18.4 million in stock and asset on February 22, 2013. Under the terms of agreement, Cequence will issue 10.3 million shares and will give its Fir oil and gas property as consideration valued at CAD 4.5 million. Donnybrook shareholders are anticipated to receive approximately 0.0531 of a Cequence Share for each ... Donnybrook Share while continuing to hold their existing Donnybrook shares. On closing, it is anticipated that existing Donnybrook shareholders will own approximately 5% of the outstanding Cequence shares. The arrangement agreement provides for the payment of a reciprocal non-completion fee of CAD 1 million under certain circumstances. The transaction is subject to customary closing conditions, including receipt of court, Donnybrook shareholders, listing approval of Cequence shares, TSX Venture Exchange and other regulatory approvals. The Board of Directors of Donnybrook has unanimously determined that the arrangement is in the best interests of Donnybrook and is fair to Donnybrook shareholders. As on April 4, 2013, it was announced that the acquisition is expected to be approved by a special resolution passed by the shareholders of Donnybrook at a special meeting of shareholders to be held on April 15, 2013. The completion of the transaction is expected to occur in mid-April 2013. RBC Capital Markets acted as financial advisor to Donnybrook. Peters & Co. Limited acted as the financial advisor for Cequence.
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