BANKERS PETROLEUM PROVIDES CORPORATE TRANSACTION UPDATE
CALGARY, July 21, 2016 – Bankers Petroleum Ltd. (“Bankers” or the “Company”) is pleased to provide an update on the corporate transaction with affiliates of Geo-Jade Petroleum Corporation ("Geo-Jade") pursuant to an arrangement agreement dated March 19, 2016 (the “Arrangement Agreement”).
Pursuant to the Arrangement Agreement, Geo-Jade will acquire all the issued and outstanding common shares of Bankers ("Bankers Shares") through its affiliates at a cash price of C$2.20 per Bankers Share.
Completion of the transaction remains subject to the regulatory approval of the Chinese State Administration of Foreign Exchange (“SAFE”). Accordingly, the Arrangement Agreement has now been formally amended to extend the deadline to receive the People’s Republic of China approvals from June 30, 2016 to July 31, 2016. Bankers and Geo-Jade are diligently working together towards receipt of this approval before the end of July, and if received, the Arrangement Agreement provides for an automatic sixty day extension of the outside date (currently July 31, 2016, to be extended to September 29, 2016) for closing of the transaction to occur.
If the SAFE approval is not received by the close of business on August 2, 2016 (being the nearest business day to July 31, 2016), then a further amendment to the Arrangement Agreement will be required to extend the deadline for the receipt of the SAFE approval as well as the outside date for closing the transaction. Both Bankers and Geo-Jade are committed to completion of the transaction, and such discussions are underway, inclusive of possible provisions that would enhance the commitment of the parties.
Following successful completion of the transaction, Bankers Shares will be delisted from the Toronto Stock Exchange ("TSX") and the AIM market of the London Stock Exchange.