GREY:GUYFF - Post by User
Comment by
edxon May 18, 2020 2:11pm
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Post# 31042766
RE:OTC
RE:OTCSVM is trading right now on the NYSE. They're down a bit but not as much as you might expect. The face value as of Friday's close of SVMs offer was $1.42. Depending on how much they drop today that will come down a bit, but GUY should open up over $1.30 tomorrow on the TSX.
GCM would have to come in at $1.70+ to better the SVM offer and account for the transaction risk involved. That's way too rich for them. Not likely that GCM shareholders would accept owning less than 50% of the post-merger company, which is what has to happen if they double their bid on an all share basis. Maybe they use some of their $100 million in cash as well. The new bid by SVM with guaranteed cash and the increased break fee was well thought out - purposely just enough to squeeze GCM out.
But GCM is backed by Eric Sprott. GoldX is backed by Guistra and Matysek. I wouldn't count GCM out yet, but on paper they're going to be hard pressed to better the SVM deal.