I have a position in ELYGF (gold streamer). Gold Royalties (GROY) is trying to buy them out. Offer is 1) Take no Action 2) Cash (1.46 CAD equivalent in USD) 3) .245 shares of GROY per ELYGF share. Questions: What happens with 1) if the buyout is successful? re: 2) the market price is currently 1.05 USD (1.27~ CAD). How can this be? If you can just buy it for 1.27, then elect to sell for 1.46, why isn't the price adjusting immediately to that? Anyway, it sounds pretty low-risk to me, so I'm going to buy a thousand shares and elect them to cash. thanks.
If the deal gets approved & you hold to receive the cash, you'll receive $1.19. If the deal fails, stock could fall back to the 80s where it was prior to the deal announcement. Quote from the article below: "The trading strategy now is to take profits starting at $1.11, even if you can expect theoretically $1.19 at the completion." https://seekingalpha.com/article/44...uire-ely-gold-royalties-an-act-of-convenience