Calima Energy's Agreement with Aldon Oils Ltd

Calima Energy Limited (ASX:CE1) has entered into a binding definitive agreement with Aldon Oils Ltd. to sell 100% of its ownership in its Canadian subsidiary, Calima Energy Inc., for a cash consideration of approximately A$1.3 million. The sale is subject to shareholder approval and is intended to fund the company's buyback program and future acquisitions.

Executive Commentary on the Sale

The Board of Calima Energy believes that the sale of its Canadian subsidiary is in the best interests of the shareholders and will allow the company to completely exit from Canada, freeing up capital for future endeavors. The unanimous recommendation of eligible Board members to vote in favor of the sale reflects their confidence in this decision.

Summary of Calima Energy's Announcement

Calima Energy Limited (ASX:CE1) has reached a definitive agreement to sell its Canadian subsidiary, Calima Energy Inc., to Aldon Oils Ltd. for a cash consideration of approximately A$1.3 million. The sale, subject to shareholder approval, is expected to fund the company's buyback program and future acquisitions. The Board's unanimous recommendation for the sale indicates their confidence in the decision. Post-closing, Calima plans to focus on acquiring further oil and gas assets, aligning with its strategic direction. The company aims to complete the transaction approximately 10 days after shareholder approval, but no later than 31 October 2024, and seeks shareholder approval for the delisting of the company from ASX.