PEDEVCO stock is trading among the highest price range in over one-month after the company announces an exchange offer for SandRidge Permian Trust.
Shares of PEDEVCO Corp. (PED) have popped up 32% becoming one of the leading stocks in the market on Tuesday. The stock price surged followed by the announcement of the company launching an exchange offer to acquire all outstanding common units of SandRidge Permian Trust (PERS).
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PEDEVCO closed the trading at $1.80 on Tuesday up by 32.32%. The stock has been trading higher since this new week began. The stock touched its highest of $2.09 on Monday, which was its highest since late August.
PEDEVCO reported that they will be offering to exchange each issued and an outstanding common unit of beneficial interest of SandRidge Permian Trust for 4/10ths of one share of PEDEVCO common stock.
The equivalent market value of the fractional share of PEDEVCO Common Stock that would be issued in the exchange offer would be $0.536 based on the prior announcement and the closing price of PEDEVCO Common Stock on the NYSE American Exchange $1.34 on October 12, 2020. While the closing price of a Trust Common Unit on the OTC Pink Sheets was $0.44 on October 12, 2020.
The price of PEDEVCO Common Stock and Trust Common Units varies and may change at the time of the exchange in accordance with the offer. Whereas, holders of the Trust Common Units are expected to get current market quotations for both PEDEVCO Common Stock and Trust Common Units.
The main objective of this offer for PEDEVCO is to acquire all of the outstanding Trust Common Units in order to combine PEDEVCO and the Trust. The company plans to merge the Trust with its wholly-owned subsidiary after the completion and satisfaction of the exchange offer as per the agreement with SandRidge Permian Trust. With this, Trust would become direct or indirect, a wholly-owned subsidiary of PEDEVCO.
The second phase of the Merger will cancel the remaining Trust Common Units and convert them into 4/10ths of one share of PEDEVCO Common Stock for each Trust Common Unit.
The offer and withdrawal rights are expected to expire on Nov 30, 2020. The offer may get extended later on.
PEDEVCO Corp. (PED) believes that this offer is in the best of interest of the company as well as the best available option for holders of Trust Common Units to maximize the value of their investment while retaining potential upside.