Corona successful in Avalon offer

Corona reports that by giving effect to the conversion of preferred shares and the exercise of options outstanding, Corona now owns 80.7% of Avalon.

Corona was offering $7.375(US) for each common or preferred share. Tendered under the offer were about 10.6 million common shares and 1.4 million preferred shares.

Shareholders of Avalon who did not tender their shares will receive a special dividend consisting of $1 in cash and one warrant per Avalon share. Each warrant will entitle the holder to purchase an additional Avalon common share at $7.375 per share until April 30, 1992.

Following distribution of the special dividend, Corona will offer to purchase the warrants for $1 each.

A restructuring plan by Corona will see Avalon acquire Corona’s 25% interest in Poco Petroleum and Corona’s industrial mineral interests. Also, Avalon’s Canadian oil and gas operations will be transferred to Poco.

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