Gold Royalty Corp. (NYSE: GROY) declared today its intent to acquire Elemental Royalties Corp. (TSXV: ELE) directly to shareholders. The proposed acquisition is approximately valued at $130 million.
The offer stands at exchanging 0.27 Gold Royalty shares for each Elemental Royalties share held. This effectively values per Elemental share at $1.78, or a 37% premium to its closing price on December 17, 2021.
Gold Royalty relayed that its first submitted acquisition proposals to the board of Elemental Royalties on October 21 and December 15, 2021. But sans “any constructive engagement”, the firm is taking the offer directly to the shareholders.
“[We] believe that this transaction is in the best interests of the shareholders of both Elemental and Gold Royalty, which is why we intend to take the Offer directly to Elemental shareholders,” said CEO David Garofalo.
Gold Royalty last traded at US$5.15 on the NYSE while Elemental Royalties last traded at $1.30 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.