Fulucai announced LOI to acquire oil and gas properties in California
CALGARY, Canada -- Fulucai Productions has entered into a Letter of Intent (LOI) with a related party to acquire an interest in 6 non operated producing and exploration oil and gas properties in California with interests ranging from 8% to 37.5%.
Under the terms of the LOI, the company will acquire the properties for $2.5 million. The vendor has the option to receive all or a portion of the purchase price in restricted shares of Fulucai at a 15% discount to the 30 trading average for its shares prior to the closing date. The effective date and the closing date shall be April 30, 2014.
Any agreement with Fulucai is conditional upon Fulucai obtaining all necessary regulatory and shareholder approvals required to complete any necessary equity and/or debt financing.
This is a related party transaction and the related party currently owns 66,600,000 shares of Fulucai.