The shares of Terra Ventures Inc. (CVE:TAS), (PINK:TASFF) noted a gain on the markets after the company announced it is to be “devoured” by Hathor Exploration Limited. Details about the friendly take-over deal were spread yesterday through a company release.
In accordance with the contract, the two companies executed a binding letter agreement, under which Hathor will acquire all of the outstanding shares of Terra by way of a plan of arrangement. For each common share held, Terra stockholders will receive 0.20 Hathor shares. This represented a 16% premium to last Friday’s closing price of TAS.
As it often happens in such occasions, the price of the company’s stock marked a rise on the markets. After the take-over deal was announced, TAS added 10.45% to its value on a turnover of 883K shares. This is really impressive, when we have in mind that over the previous two sessions the trading volumes did not exceed the meager figure of 4,000 shares.
The future performance of the stock price will most probably depend on the development of the take-over story around Terra Ventures. That is why further comments and predictions are hardly useful at present. Perhaps, it is worth noting that the company recorded a net loss of $0.76M for the quarter ended Nov. 30, 2010.
