They noted the offer of 1 Geodynamics share for every 5.5 KUTh Energy shares was in the best interests of KUTh shareholders for the following reasons:
- The combined entity offers KUTh Energy shareholders access to an enlarged and more diverse portfolio of high quality geothermal projects;
- The combined entity will have stronger financial resources to develop the portfolio of geothermal projects;
- The Offer represents a premium to recent share price levels for KUTh Shares;
- Geodynamics Shares have in the past 12 months provided a more liquid investment; and
- If the Offer is not accepted, KUTh Energy will have to raise additional capital. This would be highly dilutive to non-participating shareholders and there is no guarantee that any such capital raising will be successful.
KUTh’s directors, who hold 36.7% of the company, plan to accept the offer.
In addition, KUTh director George Miltenyi has been invited to join the board of Geodynamics and was not involved in the processes or deliberations of the Board in relation to considering the offer.
