Origen Resources: Awaiting Strategic Investment Amidst Uncertainty

Origen Resources Inc. (CSE: ORGN) has recently provided a corporate update, detailing a significant and transformative investment that could result in a change of control. The proposed investment, valued at $3,000,000, is structured in two tranches, with the first tranche expected to close shortly after the Company's annual general and special meeting on October 25, 2024.

The investment, at a price of $0.06 per share, would create a new control person, requiring shareholder approval. The Company has disclosed the terms of the investment in its information circular and has posted meeting materials on SEDAR+, including the proposed strategic investment and the control person vote.

However, the subscription agreement has not yet been signed due to delays on the part of the strategic investor. The Company has no assurances that the subscription agreement will be signed on the agreed terms or at all. Shareholders are advised to watch the Company's news releases for updates on this strategic investment to allow them to vote based on current and updated information.

The potential reasons for the strategic investor's delay in signing the subscription agreement could include changes in market conditions, reassessment of the Company's valuation, or other unforeseen circumstances. The delayed signing of the subscription agreement may impact the timeline for the proposed second tranche of the investment, potentially pushing it beyond the initially anticipated date.

The risks associated with the investment not completing on the terms disclosed in the Company's information circular or at all include changes in market conditions, a reassessment of the Company's valuation, or other unforeseen circumstances. These risks could lead to a change in the investment terms or the withdrawal of the investment altogether.

The uncertainty surrounding the subscription agreement impacts the Company's shareholder voting process and the outcome of the control person vote. Shareholders may choose to withhold their votes or vote against the resolution if they are uncertain about the investment's terms or the strategic investor's commitment. This could potentially delay or even prevent the creation of a new control person, impacting the Company's governance and strategic direction.