Passport Energy Ltd. (
TSX: V.PPO,
Stock Forum) jumped 60% to 8 cents Wednesday following a resumption of trading as the company announced that it and
Amarok Energy Inc. (
TSX: V.AMR,
Stock Forum) have amended and restated a previously announced merger agreement.
Prior to Wednesday, trading in the common shares of each of Passport and Amarok has been halted since January 8, 2014 and March 21, 2014 respectively.
According to a press release, the amended agreement provides, among other things that
32 Degrees Diversified Energy Fund II (Canadian) L.P., and
32 Degrees Diversified Energy Fund II (U.S.) L.P. will participate in the previously announced private placement by way of a subscription of $13 million worth of common shares of Passport at 18 cents per Passport share after the Passport shares have been consolidated on a six to one basis.
As a result, the subscription receipt private placement financing previously announced has been revised to be an offering of up to a maximum of $10 million of subscription receipts of Passport at $0.18 per subscription receipt where, subject to certain escrow conditions being met, each subscription receipt is exchangeable for one post-consolidation passport share for no additional consideration.
Prior to Wednesday, trading in the common shares of each of Passport and Amarok has been halted since January 8, 2014 and March 21, 2014 respectively. Amarok Energy rose 21.4% to 17 cents.