Airlife Gases Pvt. Ltd. has completed the acquisition of a 52.9 per cent stake in Royal Helium Ltd.
AirLife, through a wholly-owned subsidiary, acquired a total of 79,901,328 common shares and 4,000,000 share purchase warrants of Royal Helium. Each warrant can be exercised to purchase one common share at a price of 65 cents per share for a period of 36 months.
“This transaction marks a significant milestone for AirLife as we evolve into an integrated helium producer,” according to Kiran Karnawat, Chairman and CEO of AirLife.
“Through this strategic deal, we are expanding our footprint in Canada’s helium corridor, securing direct access to upstream production, and contributing to job creation and industrial growth in Alberta and Saskatchewan.
“The combination of AirLife’s global distribution expertise with Royal Helium’s proven assets will enhance supply reliability and deliver long-term value to customers worldwide.”
The transaction will allow AirLife to expand its role across the value chain, allowing the company to participate directly in upstream helium production while leveraging its infrastructure to deliver end-to-end supply solutions.
AirLife is a multi-national supplier of helium and specialty gases. Royal Helium is an exploration, production and infrastructure company with a primary focus on the development of helium and associated gases. Royal Helium has prospective helium permits and leases across Southern Saskatchewan and southeastern Alberta, Canada.
Royal Helium’s reservoirs are carried primarily with nitrogen, which is not considered a greenhouse gas and has a lower greenhouse gas footprint.
Helium extracted from wells in Saskatchewan and Alberta can be up to 90 per cent less carbon-intensive compared to other jurisdictions.
Under the terms of an investor rights agreement, AirLife has the right to nominate directors of Royal Helium to have majority board representation, and one of such nominee shall be the chair of the board of directors.
In addition, AirLife also has the exclusive right to enter into a helium and specialty gases offtake agreement for all helium and other products produced by Royal Helium’s subsidiaries.
