Former Royal Helium CEO to acquire company through new entity
Canadian industrial gas business Keranic Industrial Gas has signed up to acquire helium exploration and production company Royal Helium through a binding 60-day exclusivity agreement.
Keranic Industrial Gas is a newly formed company led by former Royal Helium CEO Andrew Davidson, who resigned from the company in September.
Davidson’s resignation came four months before Royal Helium filed for bankruptcy.
Davidson said that the signed deal between Keranic Industrial Gas and Royal Helium set the stage for a “transformative opportunity”.
The transaction includes Royal Helium’s helium discoveries across an approximately 600,000-acre site spanning Saskatchewan and Alberta’s helium corridors.
It also includes the recently built Steveville plant facility and pipeline infrastructure capable of processing 15,000 mcf/day of raw gas. However, Royal Helium was struggling to achieve stable operations prior to its financial collapse.
Keranic Industrial Gas plans to restart production at the Steveville plant within 12 weeks of the transaction being approved.
The proposed purchase, which also includes Royal Helium affiliates Royal Helium Exploration and Imperial Helium, is subject to legal approvals and conditional approval from the TSX Venture Exchange.
