Greenland Energy Company (NASDAQ:GLND) stock traded higher in Friday's premarket session after the company announced a proposed all-stock acquisition of 80 Mile plc to consolidate its Greenland energy assets.

The company announced Thursday that the transaction would bring 100% ownership of the Jameson Land Basin licenses under one Nasdaq-listed company. The combined business would focus on energy exploration and critical minerals.

Greenland Energy and 80 Mile are existing joint venture partners in Greenland's Jameson Land Basin project. The proposed merger would consolidate their interests under one company, simplify operations and create a diversified energy and critical minerals business.

Greenland Energy Unveils $98 Million Acquisition

Under the proposed agreement, 80 Mile shareholders would receive 0.0079485 newly issued Greenland Energy shares for each share held.

The deal values 80 Mile's fully diluted share capital at approximately 74 million British pounds, or about $98 million. The offer represents a 71% premium to 80 Mile's closing share price on Sept. 7, the last business day before the offer period began.

Following completion, shareholders of each company would own approximately 50% of the combined business.

The company also agreed to provide 80 Mile access to a 3 million-pound unsecured convertible loan for interim funding. The companies expect the merger to reduce overlapping costs, simplify operations and improve access to capital.

Greenland Energy reported $37.4 million in cash and cash equivalents as of June 30.

CEO Robert Price said the combination would simplify development, preserve cash through an all-stock transaction and provide greater investment flexibility.

The transaction remains subject to shareholder, court and regulatory approvals.

Law Firm Launches Investigation Into Merger

Meanwhile, investor rights law firm Halper Sadeh LLC announced Thursday that it is investigating the proposed transaction. The firm is examining whether Greenland Energy's board secured the best possible terms for shareholders, conducted a fair process and disclosed all material information.

GLND Price Action: Greenland Energy shares were up 6.93% at $2.16 during premarket trading on Friday, according to market data.