Greenfire Resources (GFR) is Soaring by Huge Double Digits — Here’s What Fueled the Rally

Greenfire Resources Ltd. (NYSE:GFR) is one of the 10 Stocks With Easy 15-38% Gains.

Greenfire Resources bounced back from a two-day loss on Monday, soaring 38.04 percent to finish at $7.73 apiece, after agreeing to be acquired by Strathcona Resources Ltd. for up to CAD$2.9 billion.

In a statement, Greenfire Resources Ltd. said that it signed a definitive agreement with Strathcona, under which the latter will acquire all its issued and outstanding shares in a combination of cash and shares.

Photo by Tima Miroshnichenko on Pexels

Under the terms of the agreement, GFR shareholders may elect to sell each of their shares for 0.25 Strathcona shares, equating to $9.09 per GFR share, or a 15 percent premium over its closing price on November 6, prior to the announcement, or for $11 in cash, or a 39 percent premium over GFR’s closing price on Friday.

Neither the GFR share option nor the cash option will be subject to proration, allowing all Greenfire Resources Ltd. shareholders to receive their election in full.

Strathcona expects Greenfire Resources Ltd. leadership team to continue to lead day-to-day operations of Greenfire’s assets within a new Strathcona business unit—SCR Central Athabasca.

Colin Germaniuk, incumbent president of Greenfire, will serve as president of SCR Central Athabasca.

Strathcona said that the merger is expected to bring together two long-life oil sands and heavy oil companies.

Over the next five years, Strathcona and Greenfire each plan to grow production at an 11-12 percent CAGR through a combination of drilling to fill existing facilities and brownfield expansions.

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