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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (101671)	1/22/2021 8:29:06 AM
From: Goose94	Read Replies (1) \| Respond to of 203330

QMX Gold (QMX-V) cheapie with a chance Mackie Research - Tender to the Offer Yesterday, QMX Gold and Eldorado Gold (ELD-T; Not Covered) jointly announced a proposed friendly merger, whereby Eldorado would acquire the ~83% of QMX shares it does not already own. Given the friendly nature of the proposal and implied valuation of the existing resources, we recommend that shareholders TENDER TO THE OFFER. Transaction Terms: ELD is offering $0.075 in cash and 0.01523 of a share for each QMX share, for an implied value of $0.30/share, or 39.5% higher than the stock’s close prior to the deal’s announcement. Following the merger, which is being completed by way of a plan of arrangement, QMX shareholders would own 2.8% of the combined company. A shareholder vote is expected in March, followed by closure later that month or early April. Customary conditions and rights apply, along with break fees of $6.6M, approval by at least two-thirds of the votes cast, and a simple majority of votes cast, excluding certain shareholders, including ELD. On an EV/oz basis, the implied value is ~US$225/oz of M&I and ~US$130/oz of total resources. Our own valuation was based on US$$75/oz on 2Moz discovered at the company’s flagship Val-d’Or project, exclusive of any future equity dilution associated with ongoing funding requirements.