If CZR didn’t take the offer, it would have run out of cash and needed to do a cap raise. With limited liquidity and stock dipping to 15c who would have tipped in. They were reliant on the 3m yandal facility which was fully drawn. This would have likely landed in administration unless the 48pc of shareholders decided they would bail the company out.
although the deal wasn’t great, maybe they will improve it by in specie the gold assets. It all depends on how the next 21 days go. If 23pc of shareholders take the deal it will be done. If not there might be an improvement. If Another party wants in it’s now or never so sit tight and wait out the 21 days. Otherwise take the small win (or loss) and consider it a win as the outcome would have been far worse.
CZR Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
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