For each share held, the group will receive C$0.15 cash, which is a 114% premium to Gowest’s last closing price of C$0.07 on the TSX Venture Exchange. At press time, the stock is trading at C$0.14, for a daily gain of nearly 93%. The company’s market capitalization was C$90.6 million.
Gowest will also merge with an Ontario-incorporated company controlled by the shareholder group to create a new company, whose shares will then be distributed to the remaining shareholders on a one-for-one basis to complete the go-private transaction. Those shares will be redeemed also at a price of C$0.15.
With respect to the going-private transaction, Gowest CEO Dan Gagnon pointed to the challenges the company has faced over the years in raising sufficient capital to carry out its objective, which is to develop the Bradshaw deposit in Ontario.
“This transaction will allow a small group of our committed investors, who historically have been…
