The company has signalled its intention to merge with Toronto-listed investment company Knowlton Capital Inc (CVE:KWC).
If deemed appropriate Leni Gas Cuba (LGC) would keep its ISDX listing.
"The proposed takeover by Knowlton of the company, could deliver significant short and long term benefits to LGC shareholders, by providing greater access to the very significant North American capital markets, where there has always be considerable investment interest in Cuba through tourism, business and Government to Government relations," said David Lenigas, LGC's executive chairman.
“This proposed transaction, should provide access to the greater depth and liquidity of the TSX-V, a leading global exchange," he added.
It is anticipated that the reverse takeover will proceed by means of a share exchange, on the basis of one Knowlton share for every 2.5 shares of LGC, albeit after a share consolidation by Knowlton that will see each existing Knowlton share replaced by 0.7825 new shares.
“In a short period of time, Leni Gas Cuba has developed several projects that are beginning to bear fruit and we are glad to be participating in the further development and growth of Leni Gas Cuba,” said Mazen Haddad, chairman, president and chief executive officer of Knowlton.
Trading in the shares of Knowlton is currently suspended.
The company had previously signalled its intention to enter into a similar arrangement with Mogul Ventures Inc, a mining exploration company with projects in Mongolia, but it announced today it is pulling out of this deal.