Business
Holders of a Firm Majority of Elemental Royalties Shares Still Intend to Reject Gold Royalty's Inadequate Hostile Bid
Vancouver, British Columbia--(Newsfile Corp. - February 7, 2022) - Elemental Royalties Corp. (...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Holders of a Firm Majority of Elemental Royalties Shares Still Intend to Reject Gold Royalty's Inadequate Hostile BidVancouver, British Columbia--(Newsfile Corp. - February 7, 2022) - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental\" or \"the Company\") today reported that holders of a firm majority of the Company's shares have reiterated to management that they intend to REJECT an inadequate all-share hostile takeover bid (the \"Hostile Bid\") by Gold Royalty Corp.Elemental disclosed in its Directors' Circular dated January 24, 2022 that management heard similar views from its shareholders. Management has since conducted a new round of outreach to shareholders, following a failed public relations effort last week by Gold Royalty to persuade Elemental's shareholders to accept the Hostile Bid. \"Holders of the majority of Elemental's shares still believe, as does the Elemental Board, that the Hostile Bid grossly undervalues our high-quality portfolio of revenue-generating royalties and would deliver disproportionate benefits to Gold Royalty's shareholders at the expense of Elemental's shareholders,\" said Frederick Bell, CEO of Elemental. \"Elemental shareholders still also believe, as does the Board, that the Company should continue to progress its business plan or accept a more attractive alternative than the Hostile Bid, if one surfaces.\"Elemental's Directors' Circular provides the full details of the Board's recommendation, including the reasons, to REJECT the Hostile Bid. The document is available on the Company's website at https://www.elementalroyalties.com, and at www.sedar.com. Elemental shareholders should visit the Company's website for up-to-date information as events progress.As Elemental has previously noted, if the Hostile Bid were to succeed, Elemental shareholders would only own approximately 12% of the combined company while Elemental would contribute 62% of the revenue, based on Gold Royalty's \"pro forma\" financial information. To reject the Hostile Bid, simply take NO ACTION. If Elemental shareholders have tendered their shares and wish to withdraw them, simply ask your broker or contact Elemental's information agent, Morrow Sodali (see contact information below), to assist you with this process. Elemental will continue to provide updates to shareholders as developments warrant. AdvisorsTh...