|By Marketwired .||
|September 10, 2013 07:30 AM EDT|
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/10/13 -- Institutional Shareholder Services Inc. (ISS), has recommended that shareholders of Rockgate Capital Corp. (TSX:RGT) vote FOR the plan of arrangement with Mega Uranium Ltd. (TSX:MGA) to be voted on at Rockgate's special meeting of shareholders on September 25, 2013.
ISS is the world's leading provider of corporate governance solutions to the global financial community. More than 1,700 institutional clients rely on ISS' expertise to help them make more informed investment decisions on behalf of their shareholders.
In its report, ISS recommends shareholders vote FOR the proposed acquisition where Mega has agreed to acquire all of the issued and outstanding common shares of Rockgate. Rockgate shareholders will receive 2.2 common shares of Mega for each Rockgate common share held which represents a premium of approximately 36% to the 20-day volume weighted average trading price for the Rockgate shares on the TSX of $0.19 as of June 5, 2013.
ISS stated that: "The Arrangement is at arm's length and the transaction is expected to bring a pipeline of advanced stage and exploration projects in Africa and Australia with a sizable global resource base. Shareholders are expected to benefit from a portfolio of advanced resource equity positions which management believes are currently significantly undervalued in the market and potentially represent a strong sample of the next stage of uranium development assets globally."
ISS concluded: "that a vote FOR is warranted, in light of the adequate implied premium at the announcement of the transaction, the reasonable strategic rationale and no significantly noted governance concerns."
Welcoming ISS's recommendation, Karl Kottmeier, Rockgate's president said: "We are very pleased to receive support from ISS. This confirms that the combination of Rockgate and Mega is the right decision for the benefit of our shareholders and we look forward to participating in the future growth of the combined company."
Attention Rockgate Shareholders:
Be sure to vote your proxy before 10:00 a.m. (Vancouver time) on Monday, September 23, 2013. For more information and assistance in voting your proxy, please contact Kingsdale Shareholder Services Inc. at 1-877-659-1818 or by email at email@example.com.
Rockgate Capital Corp.