Upon completion of the Transaction Giyani will hold a 100% interest in
The Transaction and the terms outlined in the Agreement are subject to a number of conditions, including the parties executing a definitive agreement by
In connection with the Transaction, it is contemplated that a debt and/or equity financing of up to
The Transaction is expected to be structured as a Reverse Takeover ("RTO") pursuant to Policy 5.2 - Change of Business and Reverse Takeovers of the TSXV. The legal structure for the Transaction will be determined after the parties have considered all applicable tax, securities law, and accounting efficiencies.
"Giyani has assembled a unique package of energy assets that will mold our company in to a major player in the oil services and energy sector. We have delivered on our strategy of acquiring a cash-flow generating asset, which will elevate the profile of our company and remove exploration risk moving forward." stated
Trading in the common shares of Giyani has been halted in relation to this announcement. Reinstatement of the trading of Giyani shares will resume upon TSXV's confirmation that Giyani has satisfied the Requirements for Reinstatement of Trading as set forth in Section 3.4 of TSX Venture Exchange Policy 5.2 - Change of Business and Reverse Takeovers.
About Horizon Enerji
Horizon Enerji is a late stage development business and the 100% owner of the
Sumo is situated in the renowned Witbank coalfield in Middleburg, Mpumalanga province,
Further details about the proposed Transaction will be provided in a comprehensive press release when the parties enter into a definitive agreement and in any management information circular (the "Circular") to be prepared and filed in respect of the Transaction.
Investors are cautioned that, except as disclosed in the disclosure document to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Giyani should be considered highly speculative.
If and when a definitive agreement is executed, Giyani will issue a subsequent press release in accordance with the policies of the TSX-V containing the details of the definitive agreement and additional terms of the Transaction including information relating to sponsorship, summary financial information in respect of Sumo and Horizon, and other prescribed information.
On behalf of the Board of Directors of
(signed) "Duane Parnham"
Forward Looking Statements
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Giyani believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Giyani's management on the date the statements are made. Except as required by law, Giyani undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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