On Tuesday, Alpha Lithium Corporation released a notice to shareholders and the public regarding a proposed change to its Directors’ Circular. The Circular recommends that shareholders accept Tecpetrol Argentina S.A.’s increased bid to acquire 100% of the issued and outstanding shares of Alpha Lithium.
The Circular, filed with the appropriate securities regulatory bodies, claims that Alpha Lithium and Tecpetrol have agreed to a number of amendments to the previously announced arrangement agreement. The amendments would increase the consideration payable to Alpha Lithium shareholders to $1 per common share and $3 per share for the approximately 21.7 million special warrants.
The total consideration offered from the initial agreement’s $0.90 per common share and $2.70 per share for the approximately 21.7 million special warrants, to the revised agreement of $1 per common share and $3 per share for the approximately 21.7 million special warrants. Alpha Lithium estimates that the current bid value is approximately $62.4 million.
Alpha Lithium also noted that Tecpetrol’s acceptance of the revised terms is subject to obtaining certain necessary and customary representations, warranties, and covenants acceptable under the arrangement agreement; the receipt of a fairness opinion from a Canadian independent financial advisor in support of the arrangement; and the satisfaction of other customary closing conditions. The Special Meeting of shareholders to consider the arrangement is expected to take place in mid-March.
In conclusion, Alpha Lithium’s Board of Directors has unanimously recommended that shareholders accept the revised agreement released by Tecpetrol Argentina S.A. The revised agreement increases the bid to $1 per common share and $3 per share for the approximately 21.7 million special warrants from the initial offer of $0.90 per common share and $2.70 per share. Alpha Lithium estimates that this revised bid, if accepted by shareholders, would provide Alpha Lithium with a total consideration of approximately $62.4 million. The Special Meeting of shareholders to consider the arrangement is expected to take place in mid-March.