Reabold, the AIM quoted investing company which focuses on investments in upstream oil and gas projects, has announced that at a Special Shareholder Meeting for Daybreak Oil and Gas, Daybreak shareholders voted to approve the Equity Exchange Agreement, as initially announced by the Company on 21 October 2021.

Reabold California, Reabold's subsidiary which holds, inter alia, Reabold's licence interests in California, will become a wholly owned subsidiary of Daybreak, which, in exchange, will issue up to 160,964,489 Daybreak shares to Gaelic Resources Limited, a wholly owned subsidiary of Reabold. Consequently, Reabold will indirectly be interested in approximately 42 per cent. (subject to customary adjustments) of Daybreak's share capital, as enlarged by the completion of the Transaction. All material conditions precedent associated with the Transaction have now been satisfied, and completion of the Transaction is expected to take place this week, including the transfer of the Consideration Shares to Reabold.

Sachin Oza, Co-CEO of Reabold, commented:
"With material production, favourable commodity pricing dynamics and multiple organic growth opportunities available to it, Daybreak, combined with the Reabold California portfolio, is now ideally positioned to capitalise on opportunities in its core focus area of California.

"As a significant shareholder in the combined entity, we look forward to seeing the full potential of Daybreak being unlocked, with a dedicated management team with significant in-state expertise now leading the company and focused on driving growth."