GROW - Echo Lake Capital Deerhaven Capital intend to acquire class A shares of U.S. Global Investors

Echo Lake Capital and Deerhaven Capital intend to acquire all the outstanding class A shares of U.S. Global Investors (NASDAQ:GROW) for $5.30 per share. The consideration consists of $2.65 per share in cash and $2.65 per share in newly issued 8.5% preferred stock in the company, and represents a premium of 20% to GROW's Jun. 24 closing price. Also, the two companies intend to acquire all of GROW's outstanding class C shares. The class C stockholders would receive all of (i) GROW's 8% Hive debentures, (ii) GROW's investments in held-to-maturity debt securities valued at $1.0M and (iii) the company's other investments valued at $4.2M. The proposal is contingent upon GROW redeeming for cash proceeds of at least $6.7M the $7.0M of investments it had in US Global Investors Funds. A response to the proposal can be expected by Jul. 8. Shares were trading +1.37% pre-market. Source: Press Release

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Echo Lake Capital, Deerhaven Capital intend to acquire class A shares of U.S. Global Investors