Maverix Metals ( NYSE: MMX ) shares gained 4% Thursday morning after the gold-focused royalty and streaming company entered into definitive merger agreement with Triple Flag Precious Metals ( NYSE: TFPM ).
Pursuant to a plan of arrangement, Triple Flag ( TFPM ) will acquire all of the issued and outstanding common shares of Maverix ( MMX ). Maverix ( MMX ) shareholders may elect to receive either US$3.92 in cash or 0.360 of a Triple Flag share per Maverix share held, representing share consideration of US$3.92 per Maverix share based on the closing price of Triple Flag shares on November 9, 2022.
The purchase price implies a total equity value for Maverix ( MMX ) of US$606M on a fully diluted basis. Upon deal closing, existing Triple Flag ( TFPM ) and Maverix ( MMX ) shareholders would own ~77% and 23% of the combined company, respectively, on a fully diluted basis.
The deal creates a gold-focused emerging senior streaming and royalty company. The combined company will continue as Triple Flag Precious Metals, headquartered in Toronto, Ontario, and will be led by Shaun Usmar as CEO. It will continue to pay an annualized dividend of $0.20 per Triple Flag share.
In connection with the transaction, it is expected that Maverix common shares will be delisted from the TSX and the NYSE American and that Maverix will cease to be a reporting issuer under Canadian and U.S. securities laws.
For further details see:
Triple Flag to acquire Maverix Metals in $606M deal