Airlife Gases Private Limited (“AirLife”) is pleased to announce that it has completed the acquisition, through a wholly-owned subsidiary, of a total of 79,901,328 Class A common voting shares (the “Common Shares”) of Royal Helium Ltd. (“Royal Helium”) and 4,000,000 share purchase warrants of Royal Helium (“Warrants”), representing approximately 52.9% of the issued and outstanding Common Shares on a fully-diluted basis. Each Warrant can be exercised to purchase one Common Share at a price of $0.65 per share for a period of 36 months.
Royal Helium is an exploration, production and infrastructure company with a primary focus on the development of helium and associated gases. Royal Helium’s extensive footprint includes prospective helium permits and leases across Southern Saskatchewan and southeastern Alberta, Canada.
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Royal Helium’s reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
AirLife has entered into an investor rights agreement with Royal Helium pursuant to which AirLife has the right to nominate such number of directors of Royal Helium to have majority board representation, and one of such nominee directors shall be the chair of the board of directors. AirLife has also been granted the corporate naming rights of Royal Helium, subject to regulatory and shareholder approval.
In addition, AirLife has been granted the exclusive right to enter into a helium and specialty gases offtake agreement with respect to all helium and all other products produced by Royal Helium’s subsidiaries.
Syndicate Lending Corporation acted as the sole agent to AirLife on this transaction.
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