Ellington Financial And Great Ajax Corp. Announce Mutual Termination Of Merger Agreement; Ellington Financial Agreed To Pay Great Ajax $16M With $5M Payable In Cash And $11M Paid As Consideration For 1,666,666 Shares Of Stock Purchased At $6.60/Share
Portfolio Pulse from Benzinga Newsdesk
Ellington Financial and Great Ajax Corp. have mutually terminated their merger agreement. Ellington Financial has agreed to pay Great Ajax $16 million, with $5 million in cash and $11 million for 1,666,666 shares of Great Ajax's stock at $6.60 per share. This makes Ellington Financial a holder of approximately 6.1% of Great Ajax's stock. The companies intend to continue working together on mortgage loan opportunities.
October 20, 2023 | 8:15 pm
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NEUTRAL IMPACT
Great Ajax's merger with Ellington Financial has been terminated. However, Ellington Financial has acquired a 6.1% stake in Great Ajax and plans to continue collaboration.
The termination of the merger might have a neutral impact on Great Ajax's stock as Ellington Financial has acquired a significant stake and plans to continue collaboration. However, the market's reaction to this news is uncertain.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Ellington Financial has terminated its merger with Great Ajax, but has acquired a 6.1% stake in the company. They will continue to collaborate on mortgage loan opportunities.
The termination of the merger might have a neutral impact on Ellington Financial's stock as it has acquired a significant stake in Great Ajax and plans to continue collaboration. However, the market's reaction to this news is uncertain.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100