Conwest, Faraday directors announce amalgamation plan

The boards of directors of Conwest Exploration and Faraday Resources have approved an amalgamation of the two Toronto-listed companies.

Faraday shareholders will receive 0.42 common shares of the amalgamated company for each Faraday share held. Conwest shareholders will receive one common share of the amalgamated company for each Class A multiple voting and Class B subordinate voting share held.

The amalgamated company will be known as Conwest Exploration Co. The Conwest and Faraday boards also approved a proposed shareholders’ rights protection plan to discourage discriminatory or unfair takeovers of the amalgamated Conwest.

Both the amalgamation and the rights plan will be voted on by shareholders at a special meeting Aug. 25.

John Lamacraft, president and chief executive officer of both pre-amalgamated companies, said the shares of an amalgamated company will be more attractive because the 2-tier voting structure and inter-company shareholdings will be eliminated.