definitive agreement with Israel Chemicals Ltd. under which Israel Chemicals will acquire all of the outstanding common shares of Allana that it does not already own for $0.50/share. The proposed deal is an all-cash offer, with one exception: Liberty Metals and Mining, a large shareholder, has elected to take shares in ICL. The 50 cents all-cash offer represents a 51.5 per cent premium to the closing price on Thursday.

Raymond James analyst Steve Hansen is recommending shareholders tender their shares, as he does not expect a competing bid to surface. "While ICL's $0.50 offer price resides below our prior target ($0.80), we're inclined to believe this deal represents the best practical outcome for investors given the challenged market environment for junior potash companies. In short, we don't view going it alone as a viable option, at least not without massive dilution, and we don't expect another strategic party to surface given ICL's existing ownership position (16.4%) and previously secured offtake agreement. In this context, we recommend that investors tender their shares, and collect the healthy 51.5% premium offered," Mr. Hansen said in a note.