Platinum will acquire all assets and assume liabilities including $42 million in debt in exchange for about 8 million shares of Platinum Energy, worth about $60 millionPlatinum Energy Resources (OTC Bulletin Board: PRGI), an asset-acquisition company in Montvale, has restructured its merger with Tandem Energy Holdings, a Midland, Tex., oil- and gas-exploration and development company. Platinum Energy now plans to acquire asserts of Tandem”s operating subsidiary, Tandem Energy Corp. Platinum will acquire all assets and assume liabilities including $42 million in debt in exchange for about 8 million shares of Platinum Energy, worth about $60 million. The total number of shares disbursed will be based on the closing price when the deal is complete.
Tandem plans to liquidate after the deal is closed and distribute Platinum Energy shares to its shareholders. Tim Culp, CEO of Tandem, will join Platinum Energy”s board of directors. Platinum Energy expects to have $60 million cash on hand after the deal that it will use for possible future acquisitions and the repurchase of shares of common stock. The asset acquisition is expected to close by Dec. 31. Platinum Energy Resources shares were unchanged at $7.23 in morning trading.