Associated Capital Group Evaluating Morgan Group Exchange Offer
Associated Capital Group, Inc. (NYSE: AC), (the “Company”), announced today that its Board has authorized the Company to explore an offer to exchange shares of its common stock for shares of Morgan Group Holding Company, (OTC: MGHL) (“Morgan”). The analysis should be concluded no later than the end of the first quarter of 2020. There are no assurances that an exchange offer will result.
On October 31, 2019, Associated Capital merged its institutional research business, G.research, LLC with Morgan. Under the terms of the transaction, Morgan issued 50,000,000 shares of Morgan’s common stock to Associated Capital Group. As a result of the transaction, the Company holds approximately 83% of Morgan’s outstanding common shares. In addition, Vincent M. Amabile, Jr., President of Morgan purchased 5 million shares of Morgan at closing.
G.research, LLC is an institutional research services firm founded in 1976. The firm covers automotive, basic materials, consumer staples, financials, healthcare, industrials, media, technology, telecommunications, and utilities industries, with an emphasis on small and mid-cap securities. Also known as Gabelli & Company, Inc., the company hosts a number of industry conferences on behalf of Gabelli Funds and offers research subscription services.
About Associated Capital Group, Inc.
The Company has been publicly traded since November 30, 2015 following its spin-off from GAMCO.
The Company operates its investment management business via Gabelli & Company Investment Advisers, Inc. (“GCIA” f/k/a Gabelli Securities, Inc.), its 100% owned subsidiary. GCIA and its wholly-owned subsidiary, Gabelli & Partners, collectively serve as general partners or investment managers to investment funds including limited partnerships, offshore companies and separate accounts. The Company primarily manages assets in equity event-driven strategies, across a range of risk and event arbitrage portfolios and earns management and incentive fees from its advisory activities. GCIA is registered with the Securities and Exchange Commission as an investment advisor under the Investment Advisers Act of 1940, as amended.
The Company also derives investment income/(loss) from proprietary trading of assets awaiting deployment in its operating businesses.
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President & CEO