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Highlights
- Questerre issued 17.25 million common shares to acquire over 50% of Red Leaf Resources, increasing ownership to more than 90%.
- The company will pay approximately USD 1.6 million to acquire preferred shares held by other Red Leaf shareholders, excluding Questerre’s 16% stake.
- Red Leaf’s assets include patented oil-shale technology, mineral leases covering 7,000 acres in Utah, a wax processing permit, and USD 9 million in cash and investments.
Questerre Energy Corporation (TSX:QEC) has finalized the acquisition of Red Leaf Resources Inc. through a share exchange transaction. This strategic move significantly increases Questerre’s ownership in Red Leaf, bringing over 90% control of the company’s outstanding shares. The acquisition expands Questerre’s portfolio by adding proprietary technology and key mineral assets located in Utah, USA.
Acquisition Details and Share Issuance
Questerre issued 17.25 million Class “A” Common voting shares to acquire just over 50% of Red Leaf’s outstanding common shares from selling shareholders. Combined with the nearly 40% stake Questerre already held, the company now owns over 90% of Red Leaf’s common shares. In accordance with Red Leaf’s stockholders agreement, the selling shareholders exercised the ‘drag along’ rights, requiring remaining shareholders to accept the same terms. Subject to regulatory approval, Questerre anticipates issuing up to an additional 3.1 million common shares or equivalent consideration to acquire the remaining interest.
Preferred Shareholders’ Agreement and Financial Terms
Most of Red Leaf’s preferred shareholders, including Questerre’s Chief Executive Officer, agreed to sell their preferred shares for face value plus accrued dividends. Excluding the 16% of preferred shares already owned by Questerre, the company will pay approximately USD 1.6 million to complete the preferred share acquisition.
Strategic Value of Red Leaf Resources
Red Leaf is a private U.S.-based technology company with key assets including its patented HCCO® oil-shale processing technology and mineral leases in Utah. The company also holds permits for a wax processing facility and title to over 7,000 acres in the Uintah Basin. Additionally, Red Leaf maintains cash and investments totaling USD 9 million. The acquisition adds innovative technology and significant mineral assets to Questerre’s energy technology portfolio.
Questerre’s Vision and Commitment
Questerre positions itself as an energy technology and innovation company focusing on the transition of its energy portfolio. The company leverages expertise from early work on low permeability reservoirs to build a high-quality resource base. Questerre emphasizes the importance of balancing economic viability, environmental considerations, and societal needs for the future success of the oil and gas industry. The company also commits to transparency and stakeholder engagement in shaping energy development.
