Shares of World Copper Ltd. (OTCMKTS:WCUFF) pulled back a bit on Friday. However the stock is still up 25% in the past month.
Market Reaction
On Friday , WCUFF stock moved down 6.66% to $0.7138 with 10K shares, compared to its average volume of 35K shares. The stock has moved within a range of $0.7000 – 0.7697 after opening trade at $0.7697.
World Copper and Cardero Updates about their Previous Arrangement
World Copper Ltd. (OTCMKTS:WCUFF) and Cardero Resource Corp. had previously announced the combining of their respective businesses (arrangement), pursuant to an arrangement agreement dated September 17, 2021, as amended.
The Supreme Court of British Columbia granted final approval of the arrangement on December 14, 2021 to Cadero, while both companies entered into an amendment to the original arrangement agreement, dated December 28, 2021. The parties involved agreed to extend the outside date for the completion of the Arrangement to January 31, 2022. Closing is anticipated to occur on January 28, 2022.
At the close of trading on January 27, 2022, the common shares of Cardero were halted by IIROC pending the completion of the arrangement. After the market close on January 31, 2022, the TSX Venture Exchange will no longer list shares of Cadero. Each outstanding Cadero share will be exchanged for 0.200795 of a World Copper common share.
Afterwards, former shareholders of Cadero (non-diluted basis) will hold 40% of the outstanding World Copper common shares, with the remaining 60% held by the existing shareholders of World Copper, before giving effect to any concurrent financing by World Copper. Closing is subject to receipt of all necessary approvals, including delisting of Cadero shares and final acceptance of the arrangement by TSX Venture Exchange.
