Washington-based corporation engaged in independent crude oil and natural gas extraction, Daybreak Oil and Gas Inc (OTCMKTS:DBRM) on April 26, 2022, announced Special Shareholder Meeting, which would be held at 10:00 a.m. CDT on May 20, 2022.
Market Reaction
On Tuesday, DBRM stock slid 6.67%% to $0.350 with more than 38K shares, compared to its average volume of 50K shares. The stock moved within a range of $0.0330 – 0.0350 after opening trade at $0.0344
Daybreak Oil and Gas, Inc. Announces Special Shareholder Meeting as It Nears Completion of Its Acquisition of Reabold California LLC
The purpose of the meeting is to consider and vote on a proposal for approving Equity Exchange as suggested by Equity Exchange Agreement. This will be between California limited company, Reabold California LLC, Daybreak,and private company, Gaelic Resources Ltd.
The proposal will entail 66.67% approval of all shareholders, which are entitled for voting on March 22, 2022. Proxy statements having this as well as other business items have been mailed by April 21, 2022, to all shareholders.
James F. Westmoreland, President, and Chief Executive Officer said that the acquisition of Reabold would be a change event for the firm and its shareholders. The CEO said that he will encourage shareholders to vote for all proposals listed. He confirmed that the combined oil reserves are over one million barrels of proved reserves with much upside potential.
Additionally, he said that the company is in process of getting drilling permits for property areas to begin development drilling soon. He expressed gratitude to the Board of Directors and thanked all the contractors and employees that worked on the transaction.
Key Quote
James F. Westmoreland, President and Chief Executive Officer, commented, “The acquisition of Reabold will be a transforming event for the Company and its shareholders, and I would encourage our shareholders to vote for all of the proposals listed in the proxy. At closing, the combined oil reserves for the Company will be just over 1.0 million barrels of proved reserves with significant near-term upside potential. We are currently in the process of obtaining drilling permits for both property areas so we can begin development drilling soon after we close the transaction. The Board of Directors and I would like to thank all the hard work put in by all our employees and contractors that worked on this transaction.”
Traders Review
DBRM stock is trading below the 20-Day and 50-Day Moving averages of $0.0386 and $0.0401 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0338.
