An investigation on behalf of investors of Klondex Mines Ltd. (NYSE: KLDX) in connection with the proposed takeover was announced.
San Diego, CA -- (SBWIRE) -- 03/26/2018 -- An investigation was announced for investors in NYSE: KLDX shares concerning whether the takeover of Klondex Mines Ltd. by Hecla Mining Company is unfair.
Investors who purchased shares of Klondex Mines Ltd. (NYSE: KLDX) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain directors of Klondex Mines Ltd. breached their fiduciary duties owed to NYSE: KLDX investors in connection with the proposed acquisition.
On March 19, 2018, Hecla Mining Company (NYSE:HL) and Klondex Mines Ltd. (NYSE American:KLDX; TSX:KDX) announced Hecla Mining Company will acquire all the outstanding shares of Klondex Mines Ltd.. Under the Transaction, Hecla Mining Company will acquire Klondex Mines Ltd. for consideration of US$462 million with a mix of cash and shares of Hecla common stock and the newly formed company (Klondex Canada). Klondex's shareholders will receive US$2.47 per share in cash or shares of Hecla.
However, given that at least one analyst has set the high target price for NYSE: KLDX shares at $5.25 per share, the investigation concerns whether the offer is unfair to NYSE: KLDX stockholders.
In addition, given that CI Investments Inc. and Sentry Investments Inc., which together hold approximately 42.5 million shares of Klondex, representing approximately 23.7% of Klondex's issued and outstanding shares, have already entered into support agreements with Hecla Mining Company, agreeing to vote their Klondex Mines Ltd. shares in favor of the Transaction, the investigation concerns whether the Klondex Mines Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
On March 23, 2018, NYSE: KLDX shares closed at $2.35 per share.
Those who are current investors in Klondex Mines Ltd. (NYSE: KLDX) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com