Tiidal Gaming Group (CSE: TIDL) is evidently considering the option of “going private” following the sale of its Tiidal Gaming NZ Limited subsidiary to Entain holdings back in June.
The firm this morning revealed that after a strategic review, the board has determined that it will offer a substantial issuer bid as a means of returning capital to shareholders. In exchange, the company will offer $0.1225 per share under a substantial issuer bid, with the intention of repurchasing potentially all 87.6 million shares that are currently outstanding at a cost of $10.7 million, a 27% premium over the firms volume weighted average price over the last 20 sessions.
The figure follows a BDO report commissioned by the board that suggests the fair market value of the company currently sits at $0.122 per share.
The repurchase program is to be funded via cash on hand, with insiders of the company disclosing their intention to participate in the offer. The tender offer is expected to begin on November 2, and expire 35 days later.
Tiidal’s decision to repurchase shares follows the sale of its gaming subsidiary in June for $13.25 million, with the sale amounting to substantially all of the assets and operating activities of the company. As of July 31, the company reported total assets of $11.3 million, and liabilities of $309k, meaning that the substantial issuer bid will see nearly if not all of the firms assets returned to shareholders.
Tiidal Gaming last traded at $0.095 on the CSE.
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