On June 21, 2016, Seabridge Gold (TSX: SEA) (NYSE: SA) announced that it had completed its acquisition of all of the outstanding shares of SnipGold Corp. under a plan of arrangement originally announced on April 19, 2016.
The board of directors of SnipGold had previously unanimously approved the arrangement and recommended that SnipGold shareholders vote in favour of the arrangement, acting in accordance with the recommendation of its independent special committee. The special committee received advice from Primary Capital Inc., its independent financial advisor. The shareholders overwhelmingly approved the arrangement at an annual general and special meeting held on June 15, 2016.
On closing Seabridge issued 695,277 shares to acquire SnipGold, at an exchange ratio of one share of Seabridge for 63 outstanding shares of SnipGold Corp. Up to approximately 60,550 additional Seabridge shares may be issuable upon exercise of outstanding options and warrants originally issued by SnipGold, but now exercisable to acquire Seabridge shares.
Peter McArthur of Miller Thomson advised Primary Capital with respect to this transaction.