i3 Energy Plc (AIM:I3E) entered into letter of intent to acquire Toscana Energy Income Corporation (TSX:TEI) for CAD 3.8 million on January 23, 2020. i3 Energy Plc entered into an agreement to acquire Toscana Energy Income Corporation on June 23, 2020. i3 Energy executed its option to acquire Toscana Energy Income Corporation (TEIC). Under the terms of the arrangement agreement, Toscana shareholders will receive 0.03031261 of an i3 Energy ordinary share (the i3 Energy Shares) for each Toscana common share. TEIC shareholders will receive approximately 4.4 million i3 ordinary shares, representing dilution of approximately 4% to i3's current shareholders. I3 Energy paid in total CAD 3.85 million for the debt and equity. On conclusion of the arrangement agreement, i3 intends that its enlarged share capital will also be listed on the TSX. If the transaction will terminate by Toscana Energy, Toscana Energy will pay CAD 0.05 million to i3 Energy. If the transaction will terminate by i3 Energy, i3 Energy will pay CAD 0.05 million to Toscana Energy.

On completion of the transaction and subject to regulatory approval, a current member of the TEIC Board, John Festival, will join the board of i3 as a non-executive director. Completion of the plan of arrangement will be conditional on a vote in favor of the arrangement resolution by 66 2/3% of TEIC's shareholders voting at a general meeting and all of the Directors and Officers of Toscana have signed support agreements with i3 Energy. The transaction is also subject to i3's shareholder approval, approval of the Court of Queen's Bench of Alberta, assignment of ATB Loan, execution of dissent rights, Stock Exchange listing and satisfaction of certain other closing conditions customary in transactions of this nature. As of September 9, 2020, the annual and special meeting of TEIC shareholder will held on October 27, 2020 to approve the transaction. The Board of Directors of Toscana has been unanimously approved the transaction. As of October 27, 2020, the transaction was approved by Toscana's shareholders and it has received Final Court Order approving the transaction. The arrangement is expected to close during the third quarter of 2020. As of September 29, 2020, the transaction is expected to close in the second quarter of 2020. As of October 27, 2020, the transaction is expected to close on or about October 30, 2020.

Sayer Energy Advisors acted as financial advisor and fairness opinion provider to the Board of TEIC. James Joyce and James Sinclair Ford of WH Ireland Limited acted as financial advisor to i3 Energy. Vanessa McMinn, Guy Winter, Maurice Wong, Perry Feldman, Matthew Bennet, Ken Stewart, Mitchell Thaw and Al Gourley of Fasken Martineau LLP acted as legal advisor to i3 Energy. Justin Pettigrew of Norton Rose Fulbright Canada LLP acted as legal advisor to Toscana Energy Income. Odyssey Trust Company is the registrar and transfer agent of TEIC.