...Opportunistic M&A like this and that of LRS last week, is bad news for LT holders
...the only positive news is that they swap with shares of a stronger lithium stock. But the bigger lithium stock has lower %upside move relative to the targeted company (a $7 mil stock could easily double or more with a recovery in lithium price).
...the perils of being LT = you get taken over at suboptimal stock price levels. You didn't sell at $X, hoping for $2X or more, but instead it fell to $0.2X and you get taken over at that price!
...and for the predator (big company), its LT holders face more dilution and what good is higher mineral resource when you can't get it developed for yet another year or more. Core Lithium halts shares, bids for lithium minow
Joshua Peach
Core Lithium has halted shares, after news the lithium miner has bid for fellow ASX-listed Charger Metals.
Charger Metals, which has a market cap of just $7 million, said “a number of companies” had expressed interest in buying its assets, including Core, which has bid an all-scrip deal for the company at 0.9 Core Lithium shares per Charger share.
However, Charger’s board says is that the terms currently provided in the Core deal do “not fully reflect the company’s value and prospects”.
“The Charger board remains open to continuing engagement with Core should it wish to do so, with the view to pursuing the best outcome for Charger shareholders.”
Charger said it was continuing conversations with other potential bidders.
