Q: Has the rationale for the Dutch auction fallen apart now that the shares are currently trading well under the lower limit ($39/share) of the auction. And the shares likely have further to fall given the social distancing effect of Covid-19 on their business. And if the auction was cancelled the shares may trade even lower on the news.
At this point why not cancel the auction, and instead, aggressively buy back as many shares as possible in the market? Maybe GC wont be able to purchase the same number of shares as with the auction but they will get them at a cheaper price. If they still are overcapitalized after the share repurchase they could always start to issue dividends. Nothin' wrong with that!!
Cancelling the auction makes the most sense to me. If they cancel we will have a GREAT opportunity to buy Great Gaming.
At this point why not cancel the auction, and instead, aggressively buy back as many shares as possible in the market? Maybe GC wont be able to purchase the same number of shares as with the auction but they will get them at a cheaper price. If they still are overcapitalized after the share repurchase they could always start to issue dividends. Nothin' wrong with that!!
Cancelling the auction makes the most sense to me. If they cancel we will have a GREAT opportunity to buy Great Gaming.