COVID-19 and market volatility put agreement on hold as firm copes with knock-on effects of health scare
GMP Capital and Richardson GMP have postponed the all-stock deal which would have resulted in the former acquiring all the latter’s shares it didn’t already own.
In a statement, GMP Capital said that the ongoing COVID-19 outbreak and recent market volatility meant that both parties did not expect the deal to be completed within the agreed time period. Therefore, the special meeting of common shareholders called for April 21 has been postponed.
The statement read: “The parties are continuing to work toward entering into a definitive agreement and remain hopeful that they will do so in the future. The Company cautions its shareholders and other stakeholders that there is no assurance that any transaction involving Richardson GMP will result from these discussions or on what terms or structure any transaction may occur.”
GMP Capital also announced it is cancelling all non-essential travel and, until further notice, has mandated that all face-to-face meetings be conducted online.
Kish Kapoor, interim president and chief executive officer, stated: "We continue to monitor closely the growing concerns about the spread of COVID-19 and are following the advice and guidance of public health authorities in an effort to help minimize the spread of the virus. Like you, we are understandably concerned, and as we have watched the situation unfolding, it has become necessary to take these prudent steps."
