- The LOI outlines the terms and conditions for a reverse takeover of Bird River by Faraday Energy Inc. (FEI)
- FEI is a private corporation with two wholly-owned corporations; Hydro-Abitibi Inc. and Renewable Energy Abitibi Inc.
- The transaction would result in Bird River acquiring all of the issued and outstanding shares of FEI
- Bird River intends to complete a private placement of common shares for gross proceeds of C$5 million
- Bird River Resources is a Canadian-based resource company
- Bird River Resources Inc. (BDR) is unchanged, trading at $0.18 per share at 1 pm ET
Bird River Resources (BDR) and Faraday Energy (FEI) have entered into a non-binding letter of intent (LOI).
The LOI, dated May 26, 2021, outlines the proposed terms and conditions of a reverse takeover of Bird River by the shareholders of FEI.
FEI is a private corporation with two wholly-owned corporations; Hydro-Abitibi Inc. and Renewable Energy Abitibi Inc.
Pursuant to the LOI, the transaction would result in Bird River acquiring all of the issued and outstanding shares of FEI. Once a valuation of FEI has been completed, Bird River will pay the initial C$3 million of the value for FEI in cash and the additional amount in excess of CDN$3 million, will be paid in shares of Bird River at the deemed price of $0.25 per share.
The transaction is subject to certain conditions, including the completion of satisfactory mutual due diligence, execution of a definitive legal agreement, the completion of a private placement and receipt of all requisite approvals.
The President of Faraday Energy Inc., Mr. Martin Dallaire said,
“The successful business combination with Bird River will enable Faraday to expand in the green energy sector through the development and acquisition of renewable energy assets. The demand for clean renewable electricity is forecasted to grow substantially over the coming decades and our intentions are to be an active player in the sector.”
Bird River intends to complete a private placement of common shares for gross proceeds of C$5 million at $0.25 per share.
Further details of the proposed transaction will follow in future press releases once available.
Bird River Resources is a Canadian-based resource company that currently holds a net royalty smelter interest in a platinum palladium property in the Bird River Sill area of northeastern Manitoba.
Bird River Resources Inc. (BDR) is unchanged, trading at $0.18 per share at 1 pm ET.
