Octant acquires 100% interest in an oil and gas block in the Lamu basin, onshore Kenya
Octant Energy Corp has entered into an arm’s length letter agreement dated July 28, 2015 (the “Letter Agreement”) with Imara Energy Corp. under which Octant will acquire all of the outstanding shares of Imara through the issuance of common shares of Octant.
Imara’s primary asset is a 100% interest in a 11,692 sq km oil and gas block in Kenya’s onshore Lamu Basin.
The purchase price for common shares of Imara will be satisfied by the issuance of 16,300,000 common shares of Octant at a deemed price of $0.10 per share, which represents approximately 20% of the Octant shares.
In addition, Imara currently has outstanding 4,075,500 share purchase warrants and 6,275,000 stock options, both of which have an exercise price of $0.25 per share.
The outstanding share purchase warrants and stock options of Imara shall be exercised, or “rolled over” into Octant options and shall be exercisable into Octant common shares for a period of 180 days from closing of the Transaction.