Jan. 27 at 12:57 AM
$GGAZF $GORO Not trying to be a downer, but the merger announcement may not be a good omen for GGAZF or GORO. It basically caps GORO at 1.44 times the price of GGAZF, while at the same time scaring off buyers of GGAZF. Who would buy 1000 shares of GGAZF when they can buy 1000 shares of GORO for roughly the same price and be guaranteed 1440 shares of GGAZF?
The 4:1 split that GGAZF is planning may bring in some buyers thinking the price is cheap, but it’s rare to see a company do a split that will intentionally bring the price of their stock below
$1.
Fortunately, both company shareholders have to approve of this merger and we are months away from it completing. We’ll see what happens, but if silver (and gold) continue their run up, I think this is gonna work out well for GORO shareholders.