Lancaster Resources, Inc. has recently announced its spin-off agreement with its subsidiary, RCA America. The agreement will see RCA America becoming a separate publicly-traded company listed on the NASDAQ stock exchange.
In the announcement, Lancaster Resources stated that the spin-off agreement would help broaden its access to capital and will allow it to sharpen its focus on its core oil and gas businesses in core geographies. The spin-off is expected to provide both Lancaster Resources and RCA America greater financial flexibility to pursue their respective objectives in the long term, benefiting both shareholders and customers.
The spin-off agreement also includes a recapitalization plan which allows for the transfer of up to 532.5 million common shares of RCA America to Lancaster Resources shareholders. Lancaster Resources’ shareholders will receive 0.55 shares of RCA America for each share of Lancaster Resources held prior to the spin-off. The record date for shareholders eligible to receive RCA America shares is March 29, 2021.
This agreement marks an exciting development for Lancaster Resources. The transaction is expected to be completed by the end of 2021, allowing investors to purchase shares of RCA America on the public markets and possibly benefit financially from the spin-off.
The spin-off also enables Lancaster Resources to restructure its operations and refocus on its core oil and gas business. It is an excellent step forward for Lancaster Resources to refine its business practices and remain competitive in the changing marketplace.
Lancaster Resources spin-off agreement with its subsidiary, RCA America, is a brilliant move that will benefit both shareholders and customers. The spin-off will allow the company to focus on its core oil and gas businesses and enable greater financial flexibility. Lancaster Resources is wise to capitalize on this opportunity, and the move should set the company up for future success.
