RE:Takeover question No they DO NOT HAVE TO ASK US if they can turn down an initial offer (Mainly because we DO NOT have the knowledge to know a good or bad offer). The following is from the GBR Management Circular after their agreement was announced Dec. 8 2021.
“From 2017 to 2021, Great Bear was approached by several precious metal producers and financial investors wishing to learn more about the Dixie Project. The Company was selective in providing access to confidential data, and since 2018 has entered into confidentiality agreements with 11 companies who have reviewed the Dixie Project, and has facilitated numerous site visits.
During this time, the Company received multiple financing, Joint Venture, and project purchase proposals that were deemed to be non-compelling by management and the Company’s Board of Directors, and did not result in formal discussions. Of these 11 companies, Great Bear had the most comprehensive discussions with Kinross and another precious metals company (“Party 1”). In the case of Kinross, a confidentiality agreement was entered into in March 2018 and representatives of Kinross conducted a total of three site visits to the Dixie Project. In the case of Party 1, an initial confidentiality agreement was entered into in March 2019, and representatives of Party 1 conducted a total of five site visits to the Dixie Project.
Both Kinross and Party 1 made unsolicited proposals to acquire the Company. Events leading to the initial unsolicited proposal by Kinross and Party 1 Great Bear and Kinross Representatives met to discuss the Dixie Project in March 2018 at the Prospectors and Developers Association of Canada conference in Toronto, Ontario. It was agreed that Great Bear would facilitate a site visit for Kinross. On March 12, 2018, Great Bear and a subsidiary of Kinross entered into a confidentiality agreement that provided for the disclosure of Great Bear confidential and proprietary information to Kinross. From April 27, 2018 to April 29, 2018, Kinross conducted its first site visit to the Dixie Project. Data reviewed at this time”
After years of tire kicking and “proposals” GBR and team, “After discussion and consideration, including a review of the transaction terms, the BMO Opinion and other relevant matters, the Great Bear Special Committee unanimously determined that the Arrangement and the entering into of the Arrangement Agreement are in the best interests of Great Bear and that the Consideration is fair to the Great Bear Shareholders and recommended to the Great Bear Board that the Great Bear Board approve the Arrangement and the entering into of the Arrangement Agreement and ancillary agreements, and recommend that Great Bear Shareholders vote in favour of the Arrangement.”
Maybe it needs to be more than a proposal to be brought to the shareholders.
It takes a ton of investigation by people with the knowledge to understand the information available and know the true value of these projects, so why would they ask us unless they deem the offer acceptable??