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Tamarack Valley Energy Closes Acquisition Of Echoex

4/18/2012 1:49 PM ET

Tamarack Valley Energy Ltd. (TVE.V: Quote) said Wednesday that it has closed the acquisition of privately-held Echoex Ltd. by means of a takeover bid pursuant to the exemptions from formal take-over bids.

Under the takeover bid, 22,601,962 common shares and 505,414 class B common shares in the capital of Echoex were validly deposited by Echoex shareholders pursuant to the offer dated April 4, 2012.

These deposited Echoex Shares represented about 99 percent of the issued and outstanding common shares and 100 percent of class B common shares, thereby meeting the condition that a minimum of 90 percent of each class of the issued and outstanding Echoex Shares be tendered under the offer.

As per the offer, Tamarack Valley has taken-up the tendered Echoex Shares and paid for such shares on April 17, 2012.

Tamarack had previously issued and sold 66,000,000 subscription receipts pursuant to a bought deal offering at a price of $0.25 per Subscription Receipt for gross proceeds of $16,500,000 which closed on April 17, 2012 .

The Financing was led by Dundee Securities Ltd. and included a syndicate of underwriters consisting of AltaCorp Capital Inc., Canaccord Genuity Corp. and Peters & Co. Limited.

As a result of the completion of the acquisition, holders of subscription receipts will receive one common share in the capital of Tamarack for each subscription receipt held, for no additional consideration and without further action by the holder.

Tamarack said it plans to exercise its statutory rights to purchase the remaining shares of Echoex not already acquired.

Sheldon Steeves, the former president and chief executive officer of Echoex, was appointed to Tamarack's board of directors, on closing of the acquisition.

Dundee Securities Ltd. acted as exclusive financial advisor to Tamarack with respect to the acquisition. RBC Capital Markets acted as exclusive financial advisor to Echoex.

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by RTT Staff Writer

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