NYSEAM:GROY - Post by User
Comment by
KozmoTon Jan 31, 2022 11:21am
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Post# 34378643
RE:OUCH! ELE just embarrassed GROY with 13 reasons to reject!
RE:OUCH! ELE just embarrassed GROY with 13 reasons to reject!As an ELE shareholder I can say my main concern about the hostile takeover is that it is woefully inadequate ... the Top 3 Reasons are nicely summarized by teh following Cut n Paste from ELE's letter to shareholders ...
- Elemental shareholders would only own approximately 12% of the combined company, despite Elemental contributing 97% of the revenue on a trailing 12-month basis, and 62% of the revenue based on Gold Royalty’s calculation of the “pro forma” financial information of the combined company. While Elemental’s revenue is expected to grow materially in 2022, Gold Royalty’s revenue outlook is murky and impaired by a counterparty’s royalty termination notice.
- The Hostile Bid implies a woefully inadequate premium for control of Elemental. It values Elemental significantly below equity analysts’ target prices of Elemental’s common shares and fails to reflect compelling near-term revenue growth already embedded in our portfolio.
- The combined portfolio of Gold Royalty and Elemental would be significantly less attractive than Elemental’s stand-alone portfolio of high-quality revenue-generating gold royalties.
there's more but those are the three main and most valid points....