Vancouver's Russell Breweries Inc. (TSX-V:RB) plans to acquire Winnipeg-based Fort Garry Brewing Company Ltd. for roughly $3 million.
Fort Garry shareholders will have the option of exchanging each Fort Garry share for either:
one Russell common share;
half a Russell common share and $0.20 in cash; or
$0.40 in cash.
During the week prior to the merger announcement, Fort Garry (TSX-V:FGA) stock was trading between $0.37 and $0.45.
The two companies must still complete their due diligence and negotiate the final agreement within 30 days. The deal would also be subject to regulatory and shareholder approval.
Russell's share price range during the past week: between $0.61 and $0.66; 52-week high: $0.75; 52-week low: $0.45.