Reply from TF:Dear Shareholder,Hawkley is pleased to advise it...

Reply from TF:
Dear Shareholder,
Hawkley is pleased to advise it has executed a Plan of Arrangement with a private Canadian oil and gas producer to list on the ASX late 4Q 2021. The key highlights are as follows:The Directors of Hawkley have agreed to merge with Persist Oil and Gas Inc (“Persist / the Company ) a Calgary based private companyPersist was formed in 2019 to acquire four oil and gas fields near Alberta. The Company owns associated infrastructure with an estimated replacement value of +C$50 MMCurrent production is ~2900 boepd (35/60 oil gas ratio); target of 5,900 boepd by December 20222P. Reserves independently certified by Sproule of 13.2 MMBOE sa June 30, 2021Current EBITDA of C$11.0 MM; target EBITDA of C$30 MM in 2022 based on strip pricing as at August 1, 2021
Under the terms of the merger Hawkley must satisfy the following conditions:Obtaining shareholder approvalConsolidate its existing ordinary securities on a 1 for 20 basis;Raise A$8.0 million-A$11.75 million of equity capital before costs, through a public offer (“IPO”);Appoint two nominees from Persist to the board of the Company upon completion of the Merger;Obtain re-admission to the ASX upon completion of an IPO; andSeek a name change to Lumira Energy Limited
The Hawkley Board considers the transaction as compelling value to Hawkley shareholdersthe acquisition multiple is an attractive A$3.50/boe on a post money basis (post raising of A$10.0 million)the per flowing multiple is a mere ~A$16,000 per flowing barrelthe EBITDA multiple is 2.5x based on current EBITDA and the 1 year (2022) forward multiple is 1.0x EBITDAFurthermore, Hawkley was delisted from the ASX on June 6, 2020 with minimal assets and significant debt.
The merger with Persist represents the most attractive opportunity and compelling value for Hawkley to obtain readmission to the ASX and provide shareholders with the ability to trade their shares in the future. Post merger, assuming a capital raise of A$10.0 MM at 20cps the merged entity would have an implied market cap of A$25.0 MM of which existing Hawkley shareholders would own approximately 3.5%.Hawkley has engaged Steinepreis Paganin as Legal Advisors on the transaction and ASX listing.We are in the process of appointing a Lead Manager for the IPO.Hawkley has recently changed its auditors to RSM Australia Partners and brought its financial reporting up to date. Copies of the financial accounts and other announcements including recent Board changes are available on our website: www.hawkleyoilandgas.com. Notices of Meetings will be posted or emailed to shareholders and further updates will also be provided to the Company’s website in due course