Paramount Resources Ltd. (TO: POU.TO) acquired ownership and control of 13,705,883 common shares of Marquee Energy Ltd. as consideration for its selling, to Marquee, of certain noncore assets, Paramount said March 7.
The shares were acquired for investment purposes, the company said.
The shares Paramount now owns were issued from treasury at $0.85 each, representing 14% of Marquee’s outstanding common shares, the company added.
Because Paramount is considered, under TSX Venture rules, to be a “non-arm’s length” party—because one of its directors is also a director at Paramount-- 5,257,067 of the Marquee shares are subject to a non-voting agreement, Paramount said.
Shareholder approval will be sought at Marquee’s annual shareholders’ meeting, and if approval is not obtained by May 15, Marquee will issue Paramount 400,000 more shares, the company said.
Paramount’s CEO, Clayton H. Riddell, had owned and controlled 2,683,400 Marquee shares prior to the transaction, the company said, noting that now, Riddell and Paramount own and control 16,389,283 shares. This represents 16.7% of Marquee’s outstanding shares, the company added.
Based in Calgary, Paramount Resources Ltd. is a petroleum company exploring, producing and processing natural gas and crude oil.