. The transaction values Ely Gold at approximately $295 million and ranks as one of the most significant royalty mergers in recent years.
You will have a few weeks to fully understand your options and decide on how you want your Ely Gold shares treated in the transaction.
The Record Date for voting at the Ely Gold shareholder meeting to consider the transaction is July 14, 2021.
However, there is a maximum amount of cash that can be distributed and that is CAN$84,000,000 and there is a maximum amount of Gold Royalty shares that can be distributed and that is 41,455,194.
Ely Gold, in cooperation with Gold Royalty, is preparing a Management Information Circular to be mailed to Ely Gold shareholders in mid-July, together with proxies/voting instruction forms to allow shareholders to vote on the transaction.
Because GROY only trades in US Dollars, to compare the price of ELY.V you must multiply the price of GROY by 0.2450, and then by approximately 1.245 .
The transaction has been structured with the Gold Royalty stock/cash option to ensure that Gold Royalty, with its management and its NYSE listing, will be considered as the surviving entity resulting from the business combination.
My direct office line and e-mail address is on every press release, and I continue to speak with Ely Gold shareholders daily.
The key difference is that now we will have the capital to participate in larger deals that could be more accretive to shareholder value.
After this process ran its course, we decided that Gold Royalty would the best merger partner with whom to create a combined entity with a growth profile that we believe will benefit all shareholders.
Ely Gold has chosen to partner with a company that is complimentary to us on every level to create a platform to compete in this coming consolidation.
For all of the reasons stated above, I respectfully ask for all shareholders to give this transaction their thoughtful consideration.
Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favorable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.
Forward Looking Cautions: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Ely Gold – Gold Royalty business combination, the effect of the respective share prices of Ely Gold and Gold Royalty, and the Canada-US dollar exchange rate on the transaction valuation, the outcomes that would result from the elections made by Ely Gold shareholders as between the cash option and the Gold Royalty share option, and the requirement for Ely Gold special majority shareholder approval for the transaction.