News: Marble Point DisposalCanadian Phoenix should be worth around $1.44 per share when all is completed per the below NR.
Excerpt:
"Canadian Phoenix's estimated proceeds from disposition of its shares in Serrano and Marble Point, after transaction costs and the settlement of the Corporation's $2.1 million short-term debt owed to a private mezzanine lender is approximately $66.7 million (
$1.44 per share), should both transactions be completed."
Question is, how do we realize that gain?
Will the stock sell at this price on the open market? Most shell companies usually have a market cap close to their cash in the bank. (Hopefully this will happen once the transactions are complete and Canadian Phoenix has the cash in hand.)
To complete the sale, Marble Point shareholders need to agree to sell their shares. Canadian Phoenix shareholders need to agree for Canadian Phoenix to sell both Serrano and Marble Point at May 26th Special Meeting.
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April 29, 2010, 7:24 p.m. EDT
Canadian Phoenix Enters Into Voting Agreement and Calls Special Meeting to Dispose of Shares in Marble Point
CALGARY, ALBERTA, Apr 29, 2010 (MARKETWIRE via COMTEX) --CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix" or the "Corporation")(TSX VENTURE: CXP) is pleased to advise that it has entered into a voting agreement dated April 27, 2010 with Marble Point Energy Ltd ("Marble Point") and 7515197 Canada Ltd ("AcquisitionCo") pursuant to which the Corporation has agreed to vote its shares held in Marble Point in favour of an amalgamation between Marble Point and AcquisitionCo ("the Amalgamation"), subject to receipt of requisite shareholder and regulatory approval. Canadian Phoenix currently owns 58.2% of the outstanding common shares of Marble Point.
If the Amalgamation is approved by the shareholders of Marble Point and given effect to, non management shareholders of Marble Point including the Corporation will receive one redeemable preferred share of the amalgamated entity which will in turn be immediately redeemed for .50 per share. Total expected proceeds to the Corporation are$45 million.
"The sale of our Marble Point shares, if completed, will be another successful step in maximizing the value of our holdings," said Michael Atkinson, President and Chief Executive Officer of Canadian Phoenix Resources Corp. "Our team has done a tremendous job in generating a significant amount of cash from the sale of our assets and has positioned itself to redeploy its capital in compelling opportunities in the natural resource sector. Members of our board and management team have a long track record of consistently creating shareholder value in the resource sector and upon completion of the Serrano and Marble Point sales, will be in a position to capitalize on opportunities that are presented."
It is a condition to completion of the Amalgamation that the shareholders of Canadian Phoenix and the TSX Venture Exchange approve the sale of the Marble Point shares held by Canadian Phoenix. The Corporation has scheduled a special meeting ("Special Meeting") of the Corporation's shareholders for 9am May 26,2010, to seek shareholder approval of a resolution ("Sale Resolution") to dispose of the Corporation's shares in Marble Point, should the Amalgamation proceed. The Board of Directors of Canadian Phoenix, with Mr David Tuer abstaining, have unanimously approved the proposed transaction and has concluded that the transaction is in the best interests of Canadian Phoenix and the Canadian Phoenix shareholders and will recommend that its shareholders vote in favour of the Sale Resolution. The Corporation has executed agreements with certain of its shareholders,representing in excess of 50% of the outstanding common shares of the Corporation, to vote in favour of the Sale Resolution.
If the Shareholders of the Corporation do not approve the Corporation voting for the Sale Resolution, the Corporation will be required to pay AcquisitionCo a fee in the amount of $500,000 pursuant to the Marble Point Voting Agreement. If the Corporation is in compliance with its obligations and the Amalgamation is not consummated due to either Marble Point or AcquisitionCo not satisfying one of the respective conditions in the Amalgamation Agreement which are not waived, the Corporation will receive a $500,000 payment pursuant to the Marble Point Voting Agreement.
A full description of the Amalgamation and related matters will be included in an information circular of the Corporation dated April29, 2010 prepared for the purposes of the Special Meeting to be mailed to shareholders of the Corporation. The information circular will also be available on SEDAR (www.sedar.com).
At the Special Meeting, shareholders will also be asked to vote on the disposal of Canadian Phoenix's shareholding in Serrano Energy Ltd. This transaction was announced publicly on April 15, 2010. Full details of the Serrano share disposition will also be included in the information circular noted above.
Canadian Phoenix's estimated proceeds from disposition of its shares in Serrano and Marble Point, after transaction costs and the settlement of the Corporation's $2.1 million short-term debt owed toa private mezzanine lender is approximately $66.7 million ($1.44 per share), should both transactions be completed. The Corporation's intent is to use the proceeds for general corporate purposes and other opportunities as they present themselves in the resource sector. The Corporation and its Special Committee will continue with its ongoing strategy of maximizing shareholder value by analyzing its own assets and evaluating other opportunities.
About Canadian Phoenix
Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CXP".