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  • Loon Energy Corporation (LNE.H) and Optimind Pharma Inc. have entered a letter of intent (LOI) for a reverse takeover transaction, resulting in Optimind becoming a wholly owned subsidiary of Loon Energy
  • Optimind shareholders will own approximately 90 per cent of the issued and outstanding Loon Energy shares
  • Loon Energy has agreed to settle $175,000 of debt with certain creditors by issuing common shares at a price of $0.095 per share
  • Loon Energy will issue an additional 1,842,105 common shares of the corporation on a pre-consolidation basis
  • Loon Energy Corporation (LNE.H) is unchanged trading at $0.125 per share at 2:13 p.m. ET

Loon Energy Corporation (LNE.H) and Optimind Pharma Inc. have entered a LOI for a reverse takeover transaction.

The transaction will result in Optimind becoming a wholly-owned subsidiary of Loon Energy.

All the issued and outstanding common shares of Optimind will be exchanged for post-consolidated common shares of Loon Energy at an exchange ratio to be set out in the definitive agreement.

Optimind shareholders will own approximately 90 per cent of the issued and outstanding Loon Energy shares.

The corporation’s shareholders will own approximately 10 per cent of the issued and outstanding shares.

It is expected that any outstanding stock options and warrants of Optimind and Loon Energy will be exercisable for comparable securities of the resulting issuer.

Loon Energy will indirectly carry on the business of Optimind and will change its name to “Optimind Pharma Inc.”

Loon Energy has agreed to settle $175,000 of debt with certain creditors by issuing common shares at a price of $0.095 per share.

Loon Energy will issue an additional 1,842,105 common shares of the corporation on a pre-consolidation basis.

The debt settlement will be completed with insiders of the corporation and as such constitutes a related party transaction.

The price and terms, including aggregate amount, of the concurrent financing, are currently being negotiated between the parties.

Trading in shares has been halted and is not expected to resume trading until the completion of the transaction.

Loon Energy Corporation (LNE.H) is unchanged trading at $0.125 per share at 2:13 p.m. ET.

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