Major Drilling Group International Inc. (TSX:MDI) entered into an agreement to acquire Mckay Drilling Pty Ltd for AUD 80 million on May 17, 2021. The purchase price for the acquisition is an amount up to AUD 80 million, consisting of: (i) a cash payment of AUD 40 million payable on closing of the Acquisition, subject to working capital adjustments; (ii) AUD 15 million paid through the issuance of common shares of Major Drilling, valued based on the volume weighted average price of the common shares prior to closing, subject to TSX approval; and (iii) an earn out of up to AUD 25 million payable in cash over the next three years, based on the achievement of certain milestones. The cash portion of the purchase price is expected to be funded from Major Drilling’s cash and existing debt facilities. For the year ended March 31, 2021, McKay generated revenue of approximately AUD 60 million and EBITDA of approximately AUD 17 million. The Acquisition is subject to customary closing conditions, including TSX approval, and is expected to close on or about June 1, 2021. The Acquisition will be immediately accretive on an earnings per share basis upon closing. Major Drilling Group International Inc. (TSX:MDI) completed the acquisition of Mckay Drilling Pty Ltd on June 1, 2021. The transaction was completed by payment of the cash portion of the purchase price of $39.7 million (representing approximately $37.1 million in Canadian dollars) subject to post-closing debt, working capital adjustments and holdbacks using Major Drilling’s current cash balance and debt facilities as well as the issuance of 1,318,101 common shares of Major Drilling, valued on the closing of the transaction by the volume weighted average price of the shares on the TSX for the 10 trading days before the closing date. In addition, an earn-out of up to $25 million will be payable in cash over the next three years, based on the achievements of certain milestones.