Legal Investigation on CGC

Law Office of Brodsky & Smith, LLC Announces Investigation of Capital Gold Corporation
49 minutes ago – Businesswire

Related Companies
Symbol Last %Chg
CGC 4.82 -0.21%
GRS 6.88 -1.85%

As of 4:00 PM ET 10/1/10
Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Capital Gold Corporation (“Capital Gold” or the “Company”) (AMEX: CGC) relating to the proposed acquisition by Gammon Gold Inc. (“Gammon Gold”) (NYSE: GRS).

Under the terms of the offer, Capital Gold shareholders would receive stock and cash for their shares – 0.5209 common shares of Gammon Gold and $0.79 in cash for each share of Capital Gold common stock. The investigation concerns possible breaches of fiduciary duty and other violations of state law. The transaction appears to be unfair, in part, given that Capital Gold stock was trading at $4.83 on September 30, 2010, yet the offer from Gammon Gold is valued at only $4.44.

If you own shares of Capital Gold and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at investorrelations@brodsky-smith.com, or by calling toll free 877-LEGAL-90.

SOURCE: Brodsky & Smith, LLC

Brodsky & Smith, LLC
Jason L. Brodsky, Esquire
Evan J. Smith, Esquire
877-LEGAL-90
investorrelations@brodsky-smith.com

So apparently there was no sale….

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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