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First Cobalt to acquire US Cobalt in C$149.9M all-share deal

First Cobalt Corp. said March 14 that it entered into a definitive agreement to acquire US Cobalt Inc. through an all-share transaction with an estimated value of about C$149.9 million.

First Cobalt will issue 1.5 common shares for each issued and outstanding US Cobalt share, giving US Cobalt shareholders a 37.5% stake in the combined entity.

The exchange ratio represents a 61.8% premium on US Cobalt's share price at the close of March 13 trade.

Both companies' boards approved the offer, and US Cobalt shareholders will be asked to approve the deal during a special meeting scheduled in May. US Cobalt's company officials, with a total shareholding of 6.7%, signed support agreements to pledge their votes in favor of the transaction.

The agreement covers customary deal protections, including a C$5.5 million termination fee. The transaction remains subject to regulatory approvals and is expected to close by the end of May.