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Great Quest Gold Announces Reverse Takeover with Lotus Gold

Story Highlights
  • Great Quest Gold enters a definitive agreement with Lotus Gold for a reverse takeover.
  • Former Lotus shareholders will own 63.3% of the resulting issuer’s shares post-transaction.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Great Quest Gold Announces Reverse Takeover with Lotus Gold

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Great Quest Fertilizer ( (TSE:GQ) ) has provided an update.

Great Quest Gold Ltd., a company listed on the TSX Venture Exchange, has entered into a definitive arrangement agreement with Lotus Gold Corporation. This agreement involves a reverse takeover where Great Quest will acquire all issued and outstanding shares of Lotus Gold, resulting in Lotus becoming a wholly-owned subsidiary. The transaction will see former Lotus shareholders owning 63.3% of the resulting issuer’s shares, with Great Quest shareholders holding 36.7%. The arrangement is subject to various approvals, including regulatory and shareholder approvals, and involves a name change, share consolidation, and bridge financing.

Spark’s Take on TSE:GQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:GQ is a Underperform.

Great Quest Fertilizer is significantly hindered by its poor financial health, marked by ongoing losses and negative cash flow. While technical indicators provide mixed signals, the valuation remains unattractive due to the lack of profitability. The promising mineral discovery in Namibia is a bright spot, potentially offering future growth opportunities. However, the overall outlook remains challenging due to the company’s current financial distress.

To see Spark’s full report on TSE:GQ stock, click here.

More about Great Quest Fertilizer

Average Trading Volume: 68,872

Technical Sentiment Signal: Sell

Current Market Cap: C$4.17M

Learn more about GQ stock on TipRanks’ Stock Analysis page.

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