PetroMagdalena Energy Corp (CVE:PMD
) (PINK:ALNGD) stopped showing any signs of life after the company's management approved of the sale of business.
A stock that's been so volatile over the whole month of May has now fallen totally silent. Half the usual daily activity still takes place but that looks like a low scale redistribution of shares and doesn't affect the price in any way.
A straight line has been recording for a week now. On June 5 PetroMagdalena announced that the company has entered into a definitive agreement with Pacific Rubiates Energy (TSE:PRE) under which the latter offered to acquire all of the oustanding common shares of PetroMagdalena. The company was offered C$1.60 per share which was around 38% higher than the average market price at the time of contract signing.
Investors holding warrants of PetroMagdalena will be entitled to receive C$0.25 per each of them, which also represented a small premium over the last closing price of warrants before the sale deal was declared effective.
The board of directors has unanimously voted in favor of the deal but shareholders will get their chance to express opinion, although the board has issued an urge to vote in favor.
PetroMagdalena will be sold for approximately C$190 million.