Sundance Energy (TSX:V.SNY, Stock Forum), a Calgary-based oil and gas exploration firm operating in Western Canada, announced that the company had entered into an amalgamation agreement with Ceno Energy effective May 12, 2014.
The transaction is expected to constitute a reverse takeover with the new entity operating as Ceno Energy and according to the news release, “Each common share of Sundance ("Sundance Share") that is outstanding immediately prior to the Amalgamation shall be cancelled, and former holders of Sundance Shares shall receive one (1) fully paid and non-assessable Resulting Issuer common share (a "Resulting Issuer Share") for each 7.7988 Sundance Shares held immediately prior to the Amalgamation.”
The release detailed further, “Each common share of Ceno ("Ceno Share") outstanding immediately prior to the Amalgamation shall be cancelled, and former holders of Ceno Shares shall receive one (1) fully paid and non-assessable Resulting Issuer Share for each 3.4154 Ceno Shares held immediately prior to the Amalgamation.”
The release then concluded, “Each of the boards of directors of Sundance and Ceno has determined that the Amalgamation is in the best interest of its shareholders and each of the board of directors of Sundance and Ceno unanimously recommends that holders of Sundance Shares and holders of Ceno Shares vote in favour of the Amalgamation.”