Ashanti Gold and Desert Gold announce definitive combination agreementChristian Fernsby ▼ | April 1, 2019
Desert Gold will acquire all of the issued and outstanding common shares of Ashanti Gold.
Acquisition 0.2857 Desert Gold common shares for each Ashanti share
Ashanti shareholders will vote on the amalgamation at a special meeting of Ashanti shareholders with closing expected to take place by the end of May 2019.
Under the terms of the definitive agreement, all of the issued and outstanding Ashanti shares will be exchanged on the basis of 0.2857 Desert Gold common shares for each Ashanti share.
The exchange ratio implies consideration of CAD $0.0514 per Ashanti Share based on the closing price of the Desert Gold Shares on the Toronto Venture Stock Exchange ("TSXV") on March 8, 2019.
This represents a premium of 28.5% based on the closing price of Ashanti shares on the TSXV on March 8, 2019.
The proposed transaction value is approximately CAD $3.8 million on a fully diluted in-the-money basis, representing 31% dilution to Desert Gold shareholders. ■