Tower Resources has completed the acquisition of Wilton Petroleum Limited (Wilton), subject to the Admission on the AIM market of the Consideration Shares.
The consideration for Wilton comprises a combination of US$1.75 million cash and 120 million ordinary shares in Tower (the "Consideration Shares"), locked-in for 12 months, which at yesterday's closing price valued Wilton at US$4.3 million.
Graeme Thomson, Tower's CEO, commented: "Under the terms of the Settlement Agreement, announced on 25 September 2013, Wilton has received US$6 million in cash. After estimated taxes the acquisition is, therefore, equivalent to Tower issuing 4.6% of its enlarged issued share capital at a premium of approximately 35% to yesterday's closing price of 1.35p per share. On completion Tower's current cash position will increase by US$4.25 million (before any taxes) to approximately US$18 million".