Tribute Resources announced the execution of a Term Sheet which outlines terms for a share exchange of Tribute shares for the remaining 53.5% of the issued and outstanding shares of Tocardo International BV.
Upon completion of the transaction outlined in the Term Sheet, Tocardo will be a wholly owned subsidiary of Tribute.
Tocardo is a tidal and free-flow water turbine producer located in Den Oever, the Netherlands. Tocardo offices and staff will remain in Den Oever following the completion of the share exchange.
Tocardo has been developing and deploying its tidal turbines in rivers and ocean environments for over a decade with eight turbines currently deployed and operating in the Netherlands and a contract for 5 turbines at the European Marine Energy Centre (EMEC).
Tribute currently owns 46.5% of the issued and outstanding shares in the capital of Tocardo.
The executed Term Sheet outlines the manner in which the remaining 53.5% of the Tocardo shares will be exchanged for approximately 53 million common shares of Tribute through an equity swap of Tribute’s common shares.
Tribute and Tocardo have been in discussion on a path forward that will allow the development of the Tribute Nova Scotian projects and additional geographic locations. It has been agreed that operation as one team will be the optimal structure by which to move forward together in a mutually beneficial manner to facilitate the future of each of the companies and the present and future marine and tidal projects.
The short-term objective of the re-organized corporation shall be a first deployment of a Universal Foundation System (UFS) equipped with 5 turbines in late 2018.
Subject to the agreement of the Tribute shareholders and the TSX(V), the Term Sheet provides for a name change to Tocardo Energy Inc.
It is expected that the share swap transaction, and related matters, will be completed on or around September 30, 2017.
Closing of the proposed share swap transaction by Tribute is subject to the acceptance of the TSX(V).