If you didn't catch our report last week on TSE:CML you may want to look back at it and see why we were right.
TSE:CML Crowflight Minerals Inc. has received a $150 Million offer from Jinchuan Group Ltd. Of China
Crowflight today announced that they have received a $150 Million take over offer from Jinchuan to acquire all of the common shares of Crowflight at a price of approximately $0.26 per common share. This offer represents a premium of approx. 47.3% to the closing price of CML on the Toronto Stock Exchange (TSX) as of Monday, April 5th, 2010 and a premium of approx. 56.8% to the 20 day volume weighted average trading price.
Above is the daily chart of CML on the TSX as of the close on April 6th, 2010, after the Jinchuan offer was announced. As you can see, the stock settled at $0.22 up 30% from the close from the day before (Monday, April 5th, 2010); which is approximately 18% shy of the $0.26/share that Jinchuan is offering. With the stock hitting a high of $0.25 cents, one cent shy, it shows me that traders were a little cautions of the offer by Jinchuan. Supposedly, the offer is being reviewed by the Special Committee of the Board of Directors and it is subject to Jinchuan being satisfied with the board’s due diligence review of the Company and the receipt of all required government and regulatory approvals.
Good bye for now,
Mr.Stock Pick
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