ELYGF - Ely Gold Royalties (ELYGF)(ELY:CA) - Shareholders Overwhelmingly Approve Combination with Gold Royalty Corp
Business combination approved. During a special meeting on August 17, Ely Gold shareholders approved a special resolution authorizing a business combination by way of statutory plan of arrangement between Ely Gold Royalties and Gold Royalty Corp. (NYSE American, GROY). The resolution was approved by 99.52% of the votes cast by Ely shareholders present in person or by proxy, and by 99.47% of the votes cast excluding votes cast by interested parties. Total votes cast for the arrangement resolution represented approximately 49.02% of Ely’s total issued and outstanding common shares.Share election outcomes. Based on elections received from Ely shareholders and after pro-rationing and adjustments, for those shareholders that elected to receive Gold Royalty Corp. shares, each Ely Gold share is expected to be exchanged for 0.2450 of a Gold Royalty share plus $0.0001 in cash. For those that elected to receive cash, each Ely Gold share is expected to be exchanged for $0.869053 in cash and 0.099166 shares of Gold Royalty Corp.Merger expected to close on or about August 23. Completion of the business combination is contingent on final approval by the Supreme Court of British Columbia. Ely expects to submit an application to the Court for final approval on August 20 with closing expected to occur on or about August 23. Ely Gold shares are expected to be delisted from the TSX Venture Exchange on the date of closing and will also be removed from quotation on the OTCQX.Enhanced growth outlook. The combination creates a larger Americas-focused royalty company with an increased number of producing and near producing royalties and a significant development and exploration stage royalty portfolio to drive future growth. While the per share transaction value is lower than our current price target, we think the combined entity should achieve a valuation closer to or at a premium to peer group averages based on enhanced scale, diversification, growth, and balance sheet advantages. We believe ELY shareholders will continue to be rewarded through ownership of Gold Royalty Corp. shares. We intend to update our estimates to reflect the combined entity following transaction close. Read More >>