look at the date of the merger announcement of feb. 23, 2023
and look at the gold price chart during that time:
https://www.kitco.com/gold_currency/index.html?currency=aud&timePeriod=6m&flag=gold&otherChart=no gold was in the process of making a big drop of us$130 from jan. to feb. 23 of the merger announcement. if gold had continued that trend down, it would have dropped below us$1800 making the situation difficult for sgi. in the interview they said they can make free cash at us$1800 gold.
note that the merger announcement date was very very close to the bottom in the gold price.
so to prepare for the possibility of gold dropping below $1800, management set up contingencies of possible merger with cyl, having cyl raise cash, and setting up a bridge loan that can be drawn on.
the voting date was
strategically set to a
much later date of mid q2 so that the gold price can be observed. if the gold price dropped below $1800 they have all the contingencies in place. if the gold price bounces back above $1800, the shareholders can vote NO
giving sgi an out to the merger.
it is like a free put option. if the gold price drops below $1800, the put can be exercised. if the gold price bounces back above $1800, the option can be left to expire without having the merger.
what a brilliant move setting up contingencies to protect sgi using that put option (merger possibility) depending on what the gold price does! ;-)