Sep 08 - Border Petroleum Inc. Announces Reactivation Transaction

Source Press Release
Company Border Petroleum Limited 
Tags Deals, Strategy - Corporate
Date September 09, 2008

Border Petroleum Inc. today announced details concerning its proposed reactivation transaction involving the purchase of all of the issued and outstanding securities of Decker Petroleum Ltd. ("Decker"). Decker is a private company that was formed in June 2006 to participate in oil and gas development and exploration prospects. 

Border has entered into a non-binding term sheet letter agreement with Decker dated as of July 15, 2008 (the "Letter Agreement") to acquire (the "Acquisition") all of the issued and outstanding shares of Decker in exchange for 31,875,000 units in the capital of Border, subject to adjustment (the "Border Units") with a deemed value of $0.20 per Border Unit. Each Border Unit will consist of one common share of Border (the "Border Common Shares") and one share purchase warrant of Border (the "Border Warrants"). The Border Warrants will each entitle the holder to purchase one Border Common Share at a price of $0.40 per share for a period of one year, subject to acceleration if the trading price of the Border Common Shares exceeds $0.60 per share for thirty (30) consecutive trading days with an average daily trading volume during this period of at least 300,000 shares. The Acquisition, when completed, will constitute the Reactivation Transaction of the Corporation pursuant to Policy 2.6 of TSX Venture Exchange Inc. (the "TSX Venture") Corporate Finance Manual. The Acquisition will also be a "reverse takeover" pursuant to Policy 5.2 of TSX Venture. 

The Acquisition is subject to the policies of TSX Venture relating to reactivation transactions of NEX companies, as well as shareholder approval of Border. Upon completion of the Acquisition, Border will be a company focused on oil and gas exploration.

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