Pursuant to the Arrangement, Denison has acquired all of the outstanding common shares of the Company ("IEC Shares") that it did not aready own, with the Company spinning out its U.S. assets into a former subsidiary of the Company ("Spinco").
The Transaction
Under the Arrangement, each IEC Share was exchanged for 0.26 of a Denison common share, one common share of Spinco, and one-half of a warrant to acquire an additional Spinco share, exercisable for 6 months at a price of $5.00 for each whole share to be acquired.
Any outstanding warrants and options of IEC were automatically exchanged for options and warrants of Denison and Spinco. All options and warrants of Denison have been adjusted by reference to the exchange ratio of 0.26. The Denison options received as a result of this exchange will expire in 90 days, and the Denison warrants expire in accordance with the expiry dates of the original IEC warrants.
Trading of the Company’s shares was halted at the Company’s request at close of market on June 6, 2014, and IEC Shares are expected to remain halted until it is de-listed on June 10, 2014. Any IEC Shares traded prior to the trading halt that have not yet settled represent only an entitlement to receive the consideration under the Arrangement, as described above. IEC will apply to cease to be a reporting issuer under the securities laws of British Columbia and Alberta as soon as possible.
The Copper Arrangement
On June 5, 2014, as a pre-completion step to the Arrangement, the Company transferred all of the issued and outstanding securities of its wholly owned subsidiary, Enexco International Inc. ("EIC"), holding the Contact Copper Project in Nevada, to Spinco along with certain intercompany debt between the Company and EIC.
On June 3, 2014, the Company announced that Spinco and the Company had entered into a definitive arrangement agreement with respect to the previously announced letter of intent dated March 19, 2014.
