GROW - U.S. Global Investors says $5.30/share takeover offer undervalues company

• U.S. Global Investors ( NASDAQ: GROW ) said that Echo Lake Capital and Deerhaven Capital's offer to purchase the company for $5.30/share undervalues the investment advisory firm.
• "The Company does not believe the proposal provides the company’s shareholders with appropriate value for their securities and therefore is not interested in pursuing the Proposal based on the terms submitted," U.S. Global said in a statement late Friday.
• The company added that it has been been building up its cash position in anticipation of a potential recession.
• “In a recession, cash is king,” Frank Holmes, U.S. Global CEO and Chief Investment Officer. “We have raised the limit to our share buyback program and increased our dividend twice, and now we are building up our cash position, which we believe is wise and prudent to weather this bear market and what could be a challenging recession."
• Echo Lake Capital and Deerhaven Capital on Monday offered $5.30/share including $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.

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