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Elemental Royalties Warns Shareholders Regarding Gold Royalty's Misleading Overstatement of the Value of Gold Royalty's Hostile Bid
Vancouver, British Columbia--(Newsfile Corp. - April 12, 2022) - Elemental Royalties Corp. (TS...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Royalties Warns Shareholders Regarding Gold Royalty's Misleading Overstatement of the Value of Gold Royalty's Hostile BidVancouver, British Columbia--(Newsfile Corp. - April 12, 2022) - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental\" or \"the Company\") today commented on a misleading overstatement by Gold Royalty Corp. (\"Gold Royalty\") about the value of Gold Royalty's hostile takeover bid for Elemental (the \"Hostile Bid\") and on Gold Royalty's unfounded criticism of Elemental's recently completed C$14 million private placement financing (the \"Financing\"). Elemental reminds shareholders that the Hostile Bid involves a share exchange, not cash. Therefore, the value of the Hostile Bid is directly tied to Gold Royalty's share price performance, which has declined significantly since Gold Royalty's announcement of its intention to make the Hostile Bid. It is highly misleading for Gold Royalty to pretend otherwise, as it has attempted to do in a news release and letter to Elemental shareholders on March 30, 2022, and in Gold Royalty's Notice of Change and Variation of its Offer to Purchase dated April 11, 2022 (collectively, the \"Gold Royalty Documents\").The Financing involved the issuance of Elemental shares at a price of C$1.51 per share. This represented a premium of approximately 15% to the value of the Hostile Bid, which was C$1.31 based on the price of Gold Royalty shares at the close of trading on March 16, 2022, the last close prior to the announcement of the Financing.On March 30, 2022, Gold Royalty falsely contended that the Financing was at a price below the value of the Hostile Bid. This claim is supported only by Gold Royalty citing the inflated and illusory \"unaffected\" price under the Hostile Bid of C$1.78 per Elemental share offered by Gold Royalty approximately three months earlier, when Gold Royalty announced its Hostile Bid intention on December 20, 2021. The unaffected price is not relevant to Elemental shareholders given material developments since then, including disclosure by both companies of acquisitions, operational and financial results, and 2022 guidance. It appears that Gold Royalty is hoping Elemental shareholders will ignore the decline in the value and the market price of Gold Royalty's shares since December 20, 2021. Gold Royalty does not disclose in the Gold R...