Elemental Altus, EMX Royalty reach merger deal to form new mid-tier royalty company

[Gold ingot and nuggets on grey table, closeup]
Liudmila Chernetska

EMX Royalty (NYSE:EMX [https://seekingalpha.com/symbol/EMX]) +2.1% pre-market Friday after Elemental Altus Royalties (OTCQX:ELEMF [https://seekingalpha.com/symbol/ELEMF]) agreed to acquire [https://seekingalpha.com/pr/20222438-elemental-altus-and-emx-to-merge-to-create-new-mid-tier-gold-focused-royalty-company] the company, with the merged company to continue under the new name of Elemental Royalty, creating a royalty company with combined revenue guidance of US$70M in 2025.

Under the deal terms, EMX (NYSE:EMX [https://seekingalpha.com/symbol/EMX]) shareholders will receive 0.2822 Elemental Altus (OTCQX:ELEMF [https://seekingalpha.com/symbol/ELEMF]) shares for each EMX share held if the consolidation is completed prior to the effective time, or 2.822 Elemental Altus shares for each EMX share if the consolidation is not completed prior to the effective time as the consideration.

In support of the transaction, Tether Investments agreed to purchase 75M Elemental Altus (OTCQX:ELEMF [https://seekingalpha.com/symbol/ELEMF]) shares at C$1.84 each for aggregate gross proceeds of US$100M.

Elemental Royalty would have 16 producing royalties contributing to a projected adjusted revenue of US$80M in 2026, positioning the merged company as a new mid-tier streaming and royalty company.

MORE ON EMX ROYALTY AND ELEMENTAL ALTUS ROYALTIES

* EMX Royalty: Tapping Into A Supercharged Metals Bull Market [https://seekingalpha.com/article/4811839-emx-royalty-tapping-into-a-supercharged-metals-bull-market]
* EMX Royalty: A Conservative Investment In Commodities And Gold [https://seekingalpha.com/article/4766077-emx-royalty-a-conservative-investment-in-commodities-and-gold]
* Elemental Altus Royalties: A Dealmaker To Watch [https://seekingalpha.com/article/4753769-elemental-altus-royalties-corp-a-deal-maker-to-watch]