Vancouver's Potash One Inc. (TSX:KCL) and Vancouver-based Potash North Resource Corp. (TSX-V:PON) have completed their merger that will strengthen Potash One's balance sheet and help them further its development in Saskatchewan.
Potash One owns the 97,240-acre Legacy Project, which is adjacent to the world's largest producing solution potash mine located in Saskatchewan.
As part of the deal, Potash North shareholders received 0.3125 common shares of Potash One for each Potash North share, valuing Potash North at roughly $32 million when the deal was announced. The share ratio represented a 29% premium for Potash North shares over the 20-trading day period prior to the announcement of the deal.
Potash North will become a subsidiary of Potash One, and its shares will be delisted from the TSX Venture Exchange.
Potash One's share price range during the past week: between $1.51 and $1.58; 52-week high: $6.25; 52-week low: $0.70.