Red Rock Resources PLC (LON:RRR) is exchanging its shares in Elephant Oil Ltd for shares in Elephant Oil Corp.
Elephant Oil Corp is a newly incorporated entity based in the US which has stated that it intends to raise pre-IPO capital of approximately US$2mln, followed by a larger offering and admission to trading on NASDAQ in September of this year.
Red Rock currently owns 4.68% of Elephant Oil Ltd, which holds hydrocarbon exploration licenses in onshore Benin. This investment is currently carried in Red Rock’s books at a value of £137,500.
Red Rock will receive one third of a share of common stock in the capital of Elephant Oil Corp for each ordinary share held Elephant Oil Ltd, resulting in the issue to Red Rock of 362,318 shares in Elephant Oil Corp.