Atikwa Resources Inc. (TSXV: ATK) has agreed to enter into a definitive reorganization and investment agreement with WCOG Grand Empire Inc. (WGE), which will provide for two separate non-brokered private placements of C $3.5 million and C $18 million in association with a reorganization of the company.
The terms of the agreement will provide for a restructuring of Atikwa's management team and board of directors. It is anticipated that the company will seek shareholder approval for a consolidation of Atikwa's common shares and a change of name for the company.
Pursuant to the initial Private Placement, WGE will subscribe for Atikwa common shares through a non-brokered private placement for C $3.5 million at C $0.05 per share. The first closing under the initial private placement will be for C $2 million on March 18, with a second closing of C $1.5 million on April 1. WGE will own 19.7% of the issued and outstanding common shares of Atikwa. Subject to approval, WGE will have the right to appoint its nominee to the board of Atikwa following the first closing of the initial private placement.
The second private placement is expected to close April 24. WGE will subscribe for 85% of the offering, with the remaining 15% of the offering being made available to existing Atikwa shareholders. WGE will agree to subscribe for any portion of the second private placement that is not taken up by existing Atikwa shareholders. Completion of the second private placement would make WGE a control person of Atikwa under applicable TSXV policies.
Upon the completion of the private placements, the company plans to implement a strategy of acquiring, exploiting and exploring while focusing on large resource-in-place assets. This initial position will provide a platform for aggressive growth through drilling, strategic acquisitions and further development of internally generated prospects.
Atikwa is an energy company involved in the exploration and development of oil and gas properties in western Canada. The company is based in Calgary.