Trading halt pending an acquisition

Published 24-MAR-2022 10:46 A.M.

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Yesterday we saw our junior exploration investment Mandrake Resources (ASX:MAN) enter a trading halt pending news of a “material transaction”.

MAN’s share price closed at 4.7c just before it entered the halt. That gives the company a market cap of $22.6M, and given MAN had ~$16.4M in cash in the bank as at 31 December 2021, MAN’s enterprise value is currently around $6.2M.

That means MAN has almost 2.5x its enterprise value in cash in the bank. Given the uncertainty in the markets at the back end of 2021 and in early 2022, we like that MAN is cashed up and ready to do some deals.

We expect MAN to come out of trading halt tomorrow. Once the acquisition is announced we will cover it on Catalyst Hunter. Subscribe here to get our take on the deal.