Reabold Resources (AIM:RBD) said a meeting for shareholders to vote on its equity exchange deal with US group Daybreak Oil and Gas will take place on 20 May 2022.
Through the transaction, Reabold California will become a wholly-owned subsidiary of Daybreak.
In return, Reabold will receive around 161mln shares, meaning it will hold up to a 46.5% stake in Daybreak following the transaction.
In a statement, Reabold added although the date of the shareholder meeting falls after the extended long stop date of 29 April 2022, the equity exchange agreement will remain in place with completion, subject to shareholder approval and subject to Daybreak's raising of a minimum of US$2.5mln through an equity raise, occurring at this time.
When the deal was announced in October, Reabold said that it would create a self-funded, OTC traded, Californian oil and gas operator, with a strong balance sheet.
Daybreak will utilise its existing in-state management team and expertise to grow the portfolio through the development of existing licences as well as considering strategic acquisition opportunities.