RE:Today Is Not A Good Day as Calibre Mining Buys Marathon GoldNLMoose wrote: Today is a dark day for Newfoundlanders and Labradorians as Marathon Gold as Vancouver based Calibre Mining has taken over Marathon Gold.
I'm not sure how buying under 20% of a company's outstanding shares are considered a takeover.
Usually, under the Laws of Accounting, a company becomes a subsidiary when another company purchases more than 50% or more of their share's, not a 15% or 17% stake.
Bad enough that Kruger has betrayed Newfoundland and Labrador as their taxpayers gave them $110 million loan to keep Corner Brook Pulp and Paper going just to have frequent shutdowns, and even betrayed the Federal Government when that mill got $14 million to upgrade the boiler to burn biomass on condition that they diversify from newsprint only to still focus on newsprint.
Source: VOCM "Calibre Mining Acquires Marathon Gold" - https://vocm.com/2023/11/15/calibre-mining-acquires-marathon-gold/
Its not a buy out, its a merger, minimal money is exchanging hands just values, The private placement deal is to deter and de-risk from others from coming in and trying to get a better vote, also likely an element to smooth the 66.6%-33.3% better on paper they paid 40 mill but when the merger is completed that 40 mill private placement is back in their hands anyway