Great Canadian Gaming Corporation made it clear there would be some changes to the upcoming substantial issuer bid taking into account the complicated global climate influenced by COVID-19. The changes announced recently include a decrease in the aggregate purchase amount to CA$350 million, as well as a time window extension. Individuals interested would have until 5 p.m. on March 25 to make a move.
Ever since the outbreak of COVID-19, the situation on a global scale has remained uncertain with fluctuations and quick changes occurring. Economy experts fear that a new recession might take place in the upcoming months if the uncertainty continues growing. Amid this fog of misinformation, Great Canadian Gaming is willing to introduce some changes to its substantial issued bid.
Changes to the Issuer Bid
The bid itself has been introduced at an earlier point this year, but its specifics would have to be subjected to some changes, as the casino operator strives to remain as flexible as possible. This would make it possible for Great Canadian Gaming to reach its set goals in a more efficient manner while also taking into account the ever-changing global landscape. These changes are triggered by the COVID-19 outbreak.
The first change introduced is a reduction of the CA$500 million amount payable of its common shares. They would now mount to only CA$350 million. In addition to that, the casino operator is also willing to give individuals interested more time to make a move. This would happen with the introduction of a deadline extension. Everyone interested has until March 25, 2020 to make a move.
The official deadline is set to 5 p.m. Toronto time. These would be the only changes to the existing special offer. It could be recalled that Great Canadian Gaming announced that the lowest price would amount to CA$39, whereas the highest one should not surpass CA$46 per common share. Great Canadian Gaming has been closely following the COVID-19 outbreak around the globe.
COVID-19 Brings Uncertainty
Such an uncertain time calls for a precaution when launching new ventures and more. Future gaming operation, as well as the current substantial issuer bid, could be impacted by the health emergency taking over the world and Canada. Lowering the aggregate purchase amount was considered being the most adequate measure at this given time while taking into account all the pros and cons of this move.
Coronavirus has reached more than 100 countries at this point and it appears that the changes and decisions are being made at a breakneck speed. This leaves fund managers and economists without much time to make up their mind and act accordingly. It should be noted that the current situation has been qualified as the worst stock market rout and growth scare in years. Despite being a health emergency, the coronavirus is projected to take its toll on global economies.
Paul O’Connor, head of multi-asset at Janus Henderson Investors, said that the economic data issued would be useless over the following four to six weeks. This Monday saw S&P 500 and Europe’s STOXX index go through their biggest daily falls since 2008. Great Canadian Gaming stated that all shareholders that have tendered shares would
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