- The merger, expected to close in Q2 2023, values Greenfire at $950 million, including debt
- MBSC, a special purpose acquisition company, is sponsored by M3 Partners and Brigade Capital Management
- The current shareholders of Greenfire will become the majority owners of the merged business
Greenfire Resources, a Calgary-based intermediate low-cost oil sands producer, has agreed to combine with M3-Brigade Acquisition III Corp (MBSC), listed on the New York Stock Exchange, for the purpose of going public in the US.
The merger, expected to close in Q2 2023, values Greenfire at $950 million, including debt. Once closed, Greenfire will become the parent of the combined assets.
MBSC, a special purpose acquisition company, is sponsored by M3 Partners and Brigade Capital Management.
Greenfire currently has two producing oil sands assets in Alberta, the Hangingstone Expansion Project and the Hangingstone Demo Project, with current net consolidated production of about 22,000 barrels per day of bitumen. The company is seeking to substantially increase production at the sites.
The current shareholders of Greenfire will become the majority owners of the combined business, owing about 81 percent of common shares. Greenfire’s investors include McIntyre Partners and Griffon Partners.
“Greenfire has successfully assembled some of the highest quality oil sands assets in the industry and solidified our position as a leading intermediate oil sands developer. Supporting the safe, responsible, and efficient development of our world-class assets is an incredible team of dedicated and talented people,” said Robert Logan, president and CEO of Greenfire, in a statement. “The investment by MBSC is a strong vote of confidence in our plan to deliver profitable growth as we focus on maximizing shareholder and stakeholder value.”
Carter Ledyard & Milburn, Burnet, Duckworth & Palmer and Felesky Flynn are acting as counsel to Greenfire. Wachtell, Lipton, Rosen & Katz and Osler, Hoskin & Harcourt are acting as counsel to MBSC. BDO serves as MBSC’s auditor.