GREY:AVNDF - Post by User
Comment by
kingofcottonon Dec 27, 2012 10:13am
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Post# 20773850
RE: RE: RE: Alberta Corporations Act, Vote on Sale
RE: RE: RE: Alberta Corporations Act, Vote on Sale It is my understanding that the sale of Elbow River is not conditional on the merger. The sale of Elbow River is a separate agreement. The Alberta Corporations Act requires a shareholder vote before the close of a sale of substantially all of the assets of an Alberta company. This legislation is here to protect the shareholders, and to encourage investment in Alberta and protect the reputation of Alberta as a safe and honest place to do business. This vote would need to take place before any merger, because it is only the Avenex shareholders who would vote on the sale of Elbow River.
Management would provide an information circular where they explain how the sale of Elbow River enhances shareholder value, and most likely an outside independent investment banker would give a detailed opinion of the fairness of the sale price.