I am also curious as to why AL did not rise closer to the 0.036 value implied by the LOI.
Under the terms of the LOI, each common shareholder of ALX (each, an “ALX Shareholder”) will receive 0.045 common shares of Greenridge (each whole such common share, a “Greenridge Share”) in exchange for each ALX common share held (each, an “ALX Share”) (collectively, the “Exchange Ratio”). The Exchange Ratio implies an offer price of C$0.036 per ALX Share and implies an offer premium of 140% to ALX’s closing share price on September 4, 2024 and a 130% premium to ALX’s volume weighted average price (“VWAP”) of ALX Shares on the TSX Venture Exchange (the “TSXV”) over the previous 20 trading days.
Note that GXP share price has been dropping as has the uranium spot price. Perhaps this is the reason.
It is very hard to raise mineral exploration money in this economic environment. Expect more mergers and acquisitions in uranium space.