In terms of not having a clause which allows a higher bid on one level I can agree this seems weak/poor, but sometimes you need to understand the context (so saying I do know what the board was thinking, but I am guessing the Firefly assets where critical to GCY to provide a more robust business). E.g. If you auction your house and have a clause that says you can accept a higher bid after the auction, do you think many people will turn up and bid, do their due diligence. Probably not.
The problem really was that the BOD don't own GCY hence they should have ask the owners of GCY (SH) first if the deal is ok and thenput a contract in place where the owners still can maximise the value of the company. The excuse that other mergers used similar contractual clauses shows only that the BOD was either oblivious about the possible interest from nearby goldcoys or explorercoys and/or wanted to hang on the gravy train. IMHO GCY will be at one stage be bought/merge with/by another entity - the question is when and under what circumstances.The merger with FFR is just a bandaid. IMO
GCY Price at posting:
36.5¢ Sentiment: None Disclosure: Not Held
(20min delay)