29 January 2018
Mountain Province Diamonds Inc. and Kennady Diamonds Inc. are pleased to announce that they have entered into a definitive arrangement agreement pursuant to which Mountain Province will acquire all of the issued and outstanding common shares of Kennady by way of a court-approved plan of arrangement. Under the terms of the transaction, Kennady shareholders will receive 0.975 of a Mountain Province common share for each Kennady common share, representing the equivalent of C$3.46 per Kennady Share, based on the closing price of Mountain Province Shares on the TSX on January 26, 2018. This Exchange Ratio represents a premium of 26% to Kennady’s closing price and a premium of 15% based on the 20-day volume-weighted-average-price of Mountain Province Shares on the TSX and Kennady Shares on the TSX-V, both as of close on January 26, 2018. The implied equity value for Kennady based on the Exchange Ratio is approximately C$176 million.