© Reuters.
VANCOUVER – Luminex (NASDAQ:) Resources Corp. (TSXV: LR) (OTCQX: LUMIF), a precious and base metals exploration and development company, announced today that its shareholders and optionholders have approved the company’s acquisition by Adventus Mining Corporation. The approval came through a vote at a special meeting where a significant majority supported the plan of arrangement.
At the meeting, 85,855,189 Luminex shares, accounting for 49.36% of the issued and outstanding shares, and 4,430,000 Luminex stock options, representing 78.48% of the outstanding options as of the record date on December 12, 2023, were cast in favor of the arrangement. The resolution received near-unanimous support, with approximately 99.97% of the votes by Luminex shareholders and 99.94% excluding certain persons as required by securities regulations.
The completion of the arrangement is scheduled for January 25, 2024, contingent upon approval by the Supreme Court of British Columbia and the fulfillment or waiver of other closing conditions.
Luminex Resources, headquartered in Vancouver, Canada, is actively involved in gold and projects in Ecuador, particularly the Condor Gold-Copper project in Zamora-Chinchipe Province. The company also possesses an extensive and promising land package within Ecuador.
InvestingPro Insights
In light of Luminex Resources Corp.’s recent shareholder approval for acquisition by Adventus Mining Corporation, a glance at the company’s financial health and market performance offers additional context. InvestingPro data reveals a market capitalization of 23.2 million USD, indicating a relatively small player in the mining sector. The company’s operating income shows a significant loss of 11.54 million USD over the last twelve months as of Q3 2023, which aligns with the InvestingPro Tip that the company operates with a substantial debt burden and is not expected to be profitable this year.
Investors should note that Luminex Resources has been trading at an EBITDA valuation multiple that suggests a high valuation given its current earnings before interest, taxes, depreciation, and amortization, which stands at -11.16 million USD. The company’s stock has experienced a notable decline, with a year-to-date price total return of -10.0% and a 1-year price total return of -52.63%, reflective of the challenges faced in the mining sector and the company’s financial performance.
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