Continental Potash Corp. entered into a letter of intent to acquire Lida Resources Inc. (CNSX:LIDA) in a reverse merger transaction on July 6, 2022. Continental Potash Corp. entered into an amalgamation agreement to acquire Lida Resources Inc. in a reverse merger transaction on September 7, 2022. It is expected that on the closing of the Proposed Transaction, Lida will issue pro rata to the shareholders of Continental Potash 36,666,667 common shares as consideration for 100% of the issued and outstanding common shares of Continental Potash at a deemed price of CAD 0.25 per Payment Share and will issue 6,666,667 common share purchase warrants exercisable at a price of CAD 0.25 per Replacement Warrant for a period of 18 months. Prior to the Closing Date, Continental Potash will complete a brokered private placement (the ?Offering?) for aggregate gross proceeds of up to CAD 6.3 million, subject to a minimum aggregate net proceeds requirement of CAD 5.7 million, involving the issuance of (i) up to CAD 2 million in subscription receipts (the ?Sub Receipts?) of Continental Potash at a price of CAD 0.25 per Sub Receipt (the ?Subscription Price?); and (ii) up to CAD 4.3 million in flow through subscription receipts (the ?FT Sub Receipts?) of Continental Potash at a price of CAD 0.30 per FT Sub Receipt (the ?FT Subscription Price?). Each one (1) Sub Receipt issued under the Offering will be automatically exchanged into one (1) unit (the ?Unit?) of the Resulting Issuer, and each (1) FT Sub Receipt issued under the Offering will be automatically exchanged into one (1) flow through unit (the ?FT Unit?) of the Resulting Issuer, in each case without further payment or action on the part of the holder upon satisfaction of certain escrow release conditions (the ?Release Conditions?). Upon completion of the Proposed Transaction there will be 61,769,155 common shares issued and outstanding in the Resulting Issuer, of which former shareholders of Continental Potash together with subscribers in the Offering will hold 59,000,000 Resulting Issuer shares (95.52%) and current shareholders of Lida will hold 2,769,155 Resulting Issuer shares (4.48%). On closing of the Transaction, Lida as the Resulting Issuer will change its name to ?Continental Potash Corp.? Upon completion of the Proposed Transaction, the combined entity (the ?Resulting Issuer?) will continue to carry on the business of Continental Potash as currently constituted. In connection with the Proposed Transaction, the Resulting Issuer currently intends to delist from the Canadian Securities Exchange and will apply to list its common shares on the NEO exchange (together, the ?Exchange?). The final form of the Proposed Transaction will be set forth in a definitive agreement to be entered into among the parties that will replace the LOI. In addition, Lida will assume all rights and obligations of Continental Potash under certain agreements that have been or will be entered into by Continental Potash prior to the Closing Date. The parties also anticipate that in conjunction with and upon closing of the Proposed Transaction, the board of directors of the Resulting Issuer shall be appointed by Continental Potash in consultation with Lida.

Completion of the Proposed Transaction is subject to a number of conditions, including, but not limited to, regulatory and shareholder approval. In addition, completion of the Proposed Transaction is subject to certain standard closing conditions, including the completion of due diligence investigations to the satisfaction of each of Lida and Continental Potash, execution of the Definitive Agreement, completion of the minimum Offering, and there being no material adverse change in the business of Lida or Continental Potash prior to completion of the Proposed Transaction. As of October 14, 2022, Lida Resources has completed an initial submission to the Canadian Securities Exchange for the transaction. The Resulting Issuer intends to use the net proceeds from the Offering to pay for expenses incurred in connection with the Proposed Transaction, to complete a work program on the Property, for working capital and general corporate purposes. As of December 7, 2022, Lida Resources announce that it has received conditional approval from the Canadian Securities Exchange (the ?CSE?) for its proposed reverse take-over transaction. Subject to the fulfilment of conditions and any necessary approvals, Lida Resources anticipates that the completion of the Proposed Transaction will occur in December 2022.

Continental Potash Corp. cancelled the acquisition of Lida Resources Inc. (CNSX:LIDA) in a reverse merger transaction on April 11, 2023.