- Anson believes the transaction consideration of $4.00 per share in cash plus a share of Nickel 28 is fair and reasonable in the current market
- Anson believes that the reduction in management’s cash change of control fees and 46% reinvestment into Nickel 28 shares at Net Asset Value, shows strong alignment between management and shareholders
- Anson believes that the 50% reduction in the Termination Fee payable to Pala in the event of a Superior Proposal is in-line with market terms
- Anson believes the improved Transaction offers a net value to shareholders that compares favorably to the withdrawn third-party proposal disclosed on September 3, 2019.
- Anson Funds intends to vote FOR the Improved Transaction
TORONTO, Oct. 02, 2019 (GLOBE NEWSWIRE) -- Anson Funds (“Anson”), a significant shareholder of Cobalt 27 Capital Corp. (“Cobalt 27,” or the “Company”), announces that it intends to vote in favour of the improved transaction announced on October 1, 2019 between the Company and Pala Investments Limited (“Pala”), a related party of the Company and its largest shareholder, pursuant to which Pala will acquire 100% of the Company’s issued and outstanding shares for C$4.00 in cash plus shares of a newly listed company to be named Nickel 28 Capital Corp. (“Nickel 28”) (the “Transaction”). Anson’s press release outlining its initial views on the Transaction can be found here, and its subsequent comments can be found here.
After reviewing the improvements to the Transaction, Anson is supportive of the Transaction, and intends to vote FOR the Transaction. Anson believes that the modifications and enhancements to the Transaction provide fair and reasonable consideration to shareholders.
Anson calculates that the improved transaction results in an imputed sale price for: (i) the Voisey’s Bay Stream (“VB Stream”) that approximately equals the net present value of its cash flows at the 5-year average of Cobalt prices, and (ii) the physical Cobalt at the current spot price, which is 35% above the July 2019 low price. In addition, the consideration compares favorably to the net value that shareholders would have received in the withdrawn third-party proposal by a private metals streaming company disclosed on September 3, 2019.
Anson believes management has addressed shareholder concerns by reducing their cash Change of Control fees by nearly 50% and is showing strong alignment with shareholders by reinvesting the balance in Nickel 28 shares at its net asset value. In addition, Anson believes the reduced Termination Fee payable to Pala upon a superior proposal is inline with market terms.
Anson intends to vote For the improved Transaction, and believes other shareholders will see the benefits of the improvements as well.
Anson Funds:
Anson Funds is a privately held alternative asset management company, founded in 2007 with offices in Dallas and Toronto.
For further information: Jay Lubinsky, Tel: (416) 447-8874