Kedalion Nickel Pty Ltd. made a bid to acquire Cannon Resources Limited (ASX:CNR) from group of sellers and other shareholders for AUD 38.5 million on October 31, 2022. Under the terms, Kedalion will pay AUD 0.45 per share. Ponderosa Investments, Kendali Pty Ltd, Longreach 52 Pty Ltd, and Hammerhead Holdings Pty Ltd agreed to accept the Offer, subject to certain conditions. Kinterra Fund has entered into a loan agreement (Loan Agreement) with Cannon. Under the Loan Agreement, Cannon can, subject to limited conditions including evidence Cannon is not in breach of the BIA and no event of default has occurred under the Loan Agreement, borrow up to AUD 1 million for the purpose of meeting agreed budgeted expenses. Kedalion has an unconditional funding agreement in place with its parent company Terranu, which in turn has an unconditional funding agreement in place with Kinterra Fund. These funds can be drawn on short notice and will be provided by way of equity unless agreed otherwise. Kedalion intends to replace all members of the Cannon Board with its own nominees. The Offer is subject to a number of conditions, including a 50.1% (on a Fully Diluted Basis) minimum acceptance condition, there are no prescribed occurrences, material occurrences, material adverse change affecting Cannon during the Offer Period, no dividends or distributions are declared or paid, there is no breach of the BIA Warranties and here are no adverse regulatory actions which may be expected to restrain, impede or prohibit the Offer. If Kedalion becomes entitled to compulsorily acquire outstanding Cannon Shares and/or Cannon Options under Part 6A.1 or Part 6A.2 of the Corporations Act, Kedalion presently intends to proceed with compulsory acquisition of those securities and Kedalion intends to procure that Cannon is removed from the official list of the ASX. Cannon Resources board unanimously recommend the shareholders to accept the offer. The Offer is open until December 31, 2022, unless otherwise extended or withdrawn. As of November 10, 2022, Rox Resources agreed to tendered all the shares it own. As of November 21, 2022 offer became unconditional and Kedalion received the acceptance of 56% stake. Kedalion has appointed a majority of the Cannon Board. Cheryl Brandon and Kamal Toor have been appointed Non-Executive Directors with Cheryl Brandon assuming the role of Chairperson and Mark Stowell has resigned from the Cannon Board. The Offer was declared unconditional on 21 November 2022. As of December 21, the offer has been extended till January 23, 2023.

Thomson Geer is acting as legal advisor to Cannon. Taylor Collison acted as financial advisor and Allen & Overy acted as legal advisor to Kinterra. Automic Pty Ltd. acted as Share Registrar for the Offer. Allen & Overy acted as a legal advisor to Kedalion Nickel.

Kedalion Nickel Pty Ltd. completed the acquisition of Cannon Resources Limited (ASX:CNR) from a group of sellers and other shareholders on January 23, 2023. The shares which were not tendered in the offer will be acquired through the compulsory acquisition method. Alex Passmore and Richard Bevan have resigned as Non-Executive Directors of Cannon.