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Gas industry

Delmay Acquires Atlantic International Resources Corporation for $19 Million

Strategic Insights

— 1 min read

Delmay Energy Corp. is pleased to announce its acquisition of Atlantic International Resources Corporation (AIRC) in a deal worth $19 Million U.S. As part of the agreement, Delmay will issue preferred stock in a subsidiary, convertible into Delmay stock at $5.00 U.S. per share, subject to Alberta Stock Exchange approval. The acquisition is expected to provide significant assets, cash flow, and underlying equity to Delmay shareholders. AIRC's operating subsidiaries have expertise in generating expansion and steady income growth in a non-cyclical industry, which should complement Delmay's existing operations.

Key Takeaways:

  • Delmay Energy Corp. signed a letter agreement to acquire Atlantic International Resources Corporation (AIRC) in December 1994 for $19 Million U.S.
  • The purchase price is payable in preferred stock of a Delmay subsidiary, convertible into Delmay stock at $5.00 U.S. per share, subject to Alberta Stock Exchange approval.
  • AIRC's operating subsidiaries, including Maryland Southern Insurance Corporation and CanVest Capital Corporation, have the personnel and management expertise to generate expansion in asset accumulation and steady income growth in a non-cyclical industry.
  • CanVest specializes in providing financial advice and incubator services to start-up technology ventures, with links to several universities.
  • The acquisition is intended to provide significant assets, cash flow, and underlying equity to Delmay shareholders.
  • This acquisition is subject to regulatory approval by the Commissioner of Insurance for the State of Maryland.
  • Victor J. Elias, President of Delmay Energy Corp., expects the acquisition to assist in resolving outstanding issues related to its attempted acquisition of Semitel Corporation of Akron, Ohio.
  • Delmay continues to concentrate on its oil and gas operations in Oklahoma and Kansas and is negotiating several acquisitions to expand its business.

Statistics:

  • Acquisition price: $19 million U.S.
  • Share price: $5.00 U.S.
  • Number of shares: (not specified)
  • Year of acquisition: 1994
  • Number of operating subsidiaries: 3 (AIRC, Maryland Southern Insurance Corporation, and CanVest Capital Corporation)

Sources:

  • Business Wire. (1994, December 15). Delmay Energy Corp. Acquires Atlantic International Resources Corporation.

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