Syntroleum: Renewable Energy Group (REGI) agrees to acquire Syntroleum. The terms of the transaction call for SYNM to receive 3,796,000 shares of REGI common stock
4:29 PM ET 12/17/13 | Briefing.com
Renewable Energy Group,REGI) and Syntroleum Corporation (NASDAQ: SYNM) announced today that they have entered into an asset purchase agreement pursuant to which REG would acquire substantially all of the assets of Syntroleum Corporation, and assume substantially all of the material liabilities of Syntroleum. The terms of the transaction call for Syntroleum to receive 3,796,000 shares of REG common stock (subject to reduction in the event that the aggregate market value of the REG common stock to be issued would exceed $49 million or if the cash transferred to REG is less than $3.2 million). Syntroleum's Board of Directors also has approved a plan of dissolution for Syntroleum pursuant to which Syntroleum will be liquidated and dissolved, in accordance with Delaware law, following consummation of the asset sale and subject to stockholder approval of the plan of dissolution at the special meeting. Before distributing any amounts to its stockholders, Syntroleum must satisfy all of its obligations not being assumed by REG. The asset purchase agreement with REG provides for Syntroleum to retain a cash reserve equal to the lesser of $5.3 million or the amount of cash on hand at Syntroleum as of the closing. Syntroleum currently intends to distribute all of the shares of REG common stock received in the asset sale to Syntroleum's stockholders which would result in Syntroleum stockholders receiving 0.3809 shares of REG common stock for each outstanding share of Syntroleum common stock.
Aussies rule - Border Collies drool!
