Fancamp Provides Update on Proposed Business Combination with ScoZinc
ScoZinc received a final order approving the plan of arrangement with Fancamp
April 20, 2021 12:00 PM Eastern Daylight Time
VANCOUVER, British Columbia--(BUSINESS WIRE)--Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased that ScoZinc Mining Ltd. (“ScoZinc”) has received a final order from the British Columbia Supreme Court approving its plan of arrangement (the “Transaction”) with the Corporation.
The combination of Fancamp and ScoZinc takes two significantly undervalued companies and creates a larger, stronger entity. Fancamp shareholders will emerge from this Transaction with a greatly enhanced opportunity to create value as the combined entity will have a strong cash position, a significant portfolio of projects that can provide long-term value creation, greater opportunities for profitable growth, and be better positioned to attract new investments that would not be otherwise available at the current size.
The Transaction was planned to close on or about April 20, 2021. Closing of the Transaction by Fancamp is subject to the approval of the TSX Venture Exchange (“TSXV”), which Fancamp anticipates obtaining shortly, but has not yet received.
Activist Peter H. Smith, a disgruntled director and former president and CEO of Fancamp, who recently had his consulting agreement terminated for cause, has made an application to the British Columbia Securities Commission (“BCSC”) to stay or overturn any decision by the TSXV approving the Transaction, and requiring that Fancamp obtain shareholder approval for the Transaction. As stated in previous press releases, the Transaction is an arm’s-length transaction and a vote is not required under applicable laws. Fancamp has undertaken to the BCSC not to close the Transaction until after April 28, 2021, pending hearing of the application.
Fancamp anticipates it will be successful in proceedings before the BCSC and expects the Transaction to close shortly thereafter in accordance with the terms of the February 12, 2021 arrangement agreement between Fancamp and ScoZinc.
Advisors
Lavery, de Billy, L.L.P. is serving as legal advisor to Fancamp. Kingsdale Advisors is acting as strategic shareholder and communications advisor to Fancamp.
