Westwater Resources Inc. said Dec. 13 that it entered into a definitive agreement to acquire Alabama Graphite Corp. in an all-scrip deal.
Shareholders of Alabama Graphite will receive 0.08 of a Westwater common share for each Alabama Graphite share, which is equivalent to 11.7 Canadian cents per share, or a 2.3% discount to Alabama Graphite's Dec. 11 share price.
Westwater will also provide a secured loan of up to US$2 million to stock up Alabama Graphite's working capital, to pay outstanding payables and to fund essential operations until the close of the acquisition, targeted for April 2018.
Upon closing of the transaction, about 30% of Westwater will be owned by Alabama Graphite shareholders. Westwater will add Alabama Graphite's graphite assets, including its flagship Coosa graphite project and Bama graphite mine in Alabama, to its portfolio of green-energy mineral assets.
The management and board of both companies unanimously support the proposed merger.
As part of the transition process, Alabama Graphite President and CEO Donald Baxter will step down, effective immediately. Alabama Graphite director Gareth Hatch has been appointed interim CEO. Executive Vice President Tyler Dinwoodie has been appointed the company's president.
