I'm underwhelmed by the GXY offer of 1.65 shares for every GMM share even though it seems to be a done deal.
Hopefully this may be the first step to a bigger ending - maybe post the amalgamation the two entities can achieve a few months of sustained production as planned that is sufficient to attract a takeover from a larger player.
Based on the pre trading halt GXY was trading at 39.5c per share therefore at 1.65 times it equates to a value of 65.17c pr GMM share.
Today the share price of both stocks was strong initially to subsequently see the GMM share price fall below the 1.65 times of the GXY share price - not sure whether to assume this is profit taking or "intended" - ie just now GXY is 45c so GMM should be 74.25c but trading at 70c.
All will be revealed in the fullness of time !!
GMM Price at posting:
69.3¢ Sentiment: Buy Disclosure: Held
