MONSEY, N.Y., Sept. 05, 2024 (GLOBE NEWSWIRE) — The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed merger of Gatos Silver, Inc. (NYSE: GATO) (“Gatos”) with First Majestic Silver Corp. (“First Majestic”) in an all-stock transaction that values Gatos at approximately $13.49 per share, which is well below the price target of $18.00 per share for Gatos of Wall Street analyst Cosmos Chiu at CIBC.
The merger was approved upon the recommendation of a special committee of independent directors of Gatos, which indicates that there was a potential conflict of interest affecting certain members of the Gatos board of directors.
If you remain a Gatos shareholder and have concerns about the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On September 5, 2024, Gatos announced that it had agreed to merge with First Majestic in an all-stock transaction under which each Gatos shareholder will receive 2.550 common shares of First Majestic for each common share of Gatos held. The exchange values Gatos at approximately $13.49 per share based on First Majestic’s closing price on September 4, 2024.
The merger was approved upon the recommendation of a special committee of independent directors of Gatos, which indicates that there was a potential conflict of interest affecting certain members of the Gatos board of directors.
“We are investigating whether the Gatos Special Committee acted in the best interests of Gatos shareholders in recommending the merger,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the members of the Gatos Special Committee were truly independent, whether the exchange ratio agreed upon is fair to Gatos shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to TipRanks, the implied deal price of $13.49 per Gatos share is well below the price target of $18.00 per share for Gatos of Wall Street analyst Cosmos Chiu at CIBC.
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
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