|By Marketwired .||
|July 28, 2014 06:02 PM EDT||
LONGUEUIL, QUEBEC -- (Marketwired) -- 07/28/14 -- Avala Resources Ltd. (TSX VENTURE:AVZ) ("Avala") and Dunav Resources Ltd. (TSX VENTURE:DNV) ("Dunav") are pleased to announce that they have reached an agreement to combine the two companies. Under the terms of a binding letter agreement (the "Agreement"), Avala will issue to Dunav shareholders 1.0457 common shares for every one (1) outstanding common share of Dunav (the "Exchange Ratio") held. All outstanding stock options and warrants of Dunav will be exchanged for options and warrants of Avala in an amount and at exercise prices adjusted in accordance with the Exchange Ratio. This will result in Avala issuing 183,331,540 new common shares, 63,768,411 warrants and 8,292,401 stock options, for a total of 437,823,763 common shares outstanding and 129,165,812 shares reserved for issuance following completion of the business combination. Completion of the business combination will be subject to, among other things, regulatory approval and all required shareholder and court approvals. The Exchange Ratio was established in order to reflect a 22% premium for Dunav's shares based on a 20 day volume weighted average share prices of Avala and Dunav's shares on the TSX Venture Exchange ("TSXV"), as at July 24, 2014.
It is anticipated that the business combination will be completed by way of plan of arrangement under the Business Corporations Act (British Columbia). Completion of the business combination is subject to certain conditions including but not limited to the following: (a) completion of satisfactory due diligence and definitive agreement by August 15, 2014; (b) receipt of all necessary consents, waivers, permits, exemptions, orders and approvals, including court approval of the plan of arrangement and the approval of the TSXV, as applicable; (c) receipt of disinterested shareholder approval of the business combination by the Avala and Dunav shareholders; and (d) receipt by Avala of sufficient funds to continue and maintain its current operations in good standing until completion of the business combination.
In the event a superior offer is made for either Dunav or Avala that is accepted and completed, Dunav or Avala (as the case may be), will be required to pay a break fee equal to 3% of the value of the consideration that was to have been paid to that company's shareholders pursuant to the Agreement.
Under the policies of the TSXV, Avala and Dunav are non arm's length parties to one another by virtue of the fact that they have four common directors and overlapping management. Each company has the same controlling shareholder, Dundee Precious Metals Inc. ("DPM"), which owns 53.1% of Avala's outstanding common shares and 45.5% of Dunav's outstanding common shares, resulting in the transaction being a business combination with a related party under Multilateral Instrument 61-101 ("MI 61-101") and Policy 5.9 of the TSXV Corporate Finance Manual. According to MI 61-101, such a business combination requires a formal valuation and minority shareholder approval, unless exempted. An exemption from the formal valuation requirement is available as Avala and Dunav's shares are not listed on any specified market (as that term is used in MI 61-101). Chantal Gosselin, chair of the special committee of independent directors established by Avala, and Elaine Bennett, chair of the special committee of independent directors established by Dunav, explained that each special committee has undertaken a comprehensive review of the business combination, with advice from independent financial advisors and legal counsel. The special committees were actively involved in the negotiation of the terms of the proposed business combination. Each special committee has received a presentation from its respective financial advisor with respect to the fairness of the transaction to their respective shareholders. After careful consideration, each special committee has unanimously approved the business combination and recommended the approval of the business combination to their respective board of directors, who in turn approved the Agreement.
Avala's special committee retained Primary Capital Inc. as financial advisor and Koffman Kalef LLP as legal advisor. Dunav's special committee retained Paradigm Capital Inc. as financial advisor and Lawson Lundell LLP as legal advisor.
The shareholder meetings of both companies are scheduled to be held on September 30, 2014. Subject to obtaining all required approvals and the satisfaction or waiver of other closing conditions, it is anticipated that the business combination will be completed early in October 2014. On completion of the business combination, the board of directors of Avala will consist of six directors from Avala and two directors from Dunav. It is expected that the combination of Avala and Dunav will bring a number of benefits, including the merger of both companies' exploration activities in Serbia, and will allow the combined company to realize savings in management and administrative costs.
Further details regarding the business combination will be provided in a special management information circular of each company to be filed with regulatory authorities and mailed to shareholders.
Avala to issue US$1M Convertible Debentures
Avala and DPM have entered into a letter of intent setting out the terms under which DPM intends to purchase up to US$1 Million of senior secured convertible debentures of Avala that can be drawn in tranches of US$250,000 (the "Debentures"), for the purpose of providing working capital to Avala. The Debentures will mature the earlier of (i) 120 days from issuance and (ii) 5 days from the completion of the business combination with Dunav. The Debentures will bear interest at the rate of 12% per annum on the first US$500,000, 15% per annum on the next US$250,000, and 18% per annum on the last US$250,000 tranche, with the last drawdown requiring DPM's pre-approval. DPM will have the option to convert all or part of the principal amount of the Debentures into common shares of Avala at any time up to 180 days after maturity of the Debentures at a pre-consolidation (see below) conversion price of $0.04 per common share. The Debentures will be issued in reliance upon prospectus and private placement exemptions.
The issuance of the Debentures to DPM is a related party transaction pursuant to MI 61-101. Avala is relying on the exemption from the formal valuation and minority shareholder approval requirements contained in sections 5.5 (g) and 5.7(1)(e) of MI 61-101. The independent directors of Avala, Chantal Gosselin and John Wakeford, have recommended that the board of directors approve the issuance of the Debentures. The issuance of the Debentures is subject to a number of conditions, including but not limited to TSXV approval and execution of debenture agreements.
Avala proposed share consolidation
Whether the business combination is completed or not, Avala intends to consolidate, by the end of October 2014, its common shares on the basis of one (1) post-consolidation common share for up to every ten (10) pre-consolidation common shares to provide Avala with greater flexibility in pursuing its plans to advance its mineral exploration projects, including its ability to obtain additional financing and potentially acquire new mineral projects.
About Avala Resources Ltd.: Avala Resources is a mineral exploration company focused on the exploration and development of the Timok Gold Project in Eastern Serbia. The Timok Gold Project comprises several targets, including the Korkan, Bigar Hill, Kraku Pester, and Korkan East deposits. The common shares of Avala trade on the TSXV under the symbol AVZ. Additional information about the Avala is available on SEDAR at www.sedar.com and at www.avalaresources.com.
About Dunav Resources Ltd.: Dunav Resources is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in Serbia. Dunav's main projects are the Tulare Copper-Gold Porphyry Project which includes the Kiseljak and Yellow Creek deposits, and the Dergmen Gold-Copper Porphyry Project. The common shares of Dunav trade on the TSXV under the symbol DNV. Additional information about the Dunav is available on SEDAR at www.sedar.com and at www.dunavresources.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the meaning of Canadian securities legislation. Forward looking information in this press release includes information about the completion and timing of the proposed business combination between Avala and Dunav, the proposed $1 million convertible debentures and the proposed share consolidation. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those anticipated, including, the contemplated business combination not being completed as a result of a number of factors including, without limitation, the shareholders of Avala or Dunav not approving the transaction, or required regulatory or court approvals not being obtained, the possible failure to realize anticipated synergies, expense reductions or other benefits of the transaction; the financing not being completed as a result of required regulatory approvals not being obtained; the share consolidation not being completed or the benefits of the consolidation not being obtained; and other risks and uncertainties. Readers should not place undue reliance on the forward-looking information contained in this news release. Neither Avala nor Dunav undertakes to update any forward-looking information, except as required by applicable securities laws.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the business combination, any information released or received with respect to the business combination may not be accurate or complete and should not be relied upon. Trading in the securities of Avala and Dunav should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
Jan. 31, 2015 05:45 AM EST Reads: 3,187
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
Jan. 31, 2015 05:30 AM EST Reads: 2,863
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
Jan. 31, 2015 05:00 AM EST Reads: 2,905
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
Jan. 31, 2015 04:30 AM EST Reads: 3,480
At 15th Cloud Expo, Shrikant Pattathil, Executive Vice President at Harbinger Systems, demos a video delivery platform that helps you do interactive videos. He discusses how Harbinger is accomplishing it in the cloud world, the problems they faced and the choices they made to get around these problems.
Jan. 31, 2015 03:45 AM EST Reads: 1,669
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
Jan. 31, 2015 03:15 AM EST Reads: 1,946
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
Jan. 31, 2015 03:00 AM EST Reads: 3,498
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
Jan. 31, 2015 02:00 AM EST Reads: 3,099
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jan. 31, 2015 02:00 AM EST Reads: 8,092
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
Jan. 31, 2015 01:00 AM EST Reads: 2,951
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
Jan. 31, 2015 01:00 AM EST Reads: 2,845
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Jan. 31, 2015 12:30 AM EST Reads: 3,096
"For the past 4 years we have been working mainly to export. For the last 3 or 4 years the main market was Russia. In the past year we have been working to expand our footprint in Europe and the United States," explained Andris Gailitis, CEO of DEAC, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 30, 2015 11:45 PM EST Reads: 2,663
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Jan. 30, 2015 11:00 PM EST Reads: 3,764
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Jan. 30, 2015 10:00 PM EST Reads: 2,884