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Investigation of Buyout of Capital Gold on behalf of Capital Gold Shareholders by Tripp Levy PLLC

^{Published on 2010-10-08 13:36:03 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Tripp Levy PLLC, a leading national securities law firm, announces an investigation into the proposed acquisition of Capital Gold Corp. (AMEX: CDC). On October 5, 2010, it was announced that CDC entered into an agreement to be acquired by Gammon Gold, Inc. (aGammon Golda) (NYSE:[ GRS ]). Under the terms of the transaction, each common share of Capital Gold will be exchanged for 0.5209 common shares of Gammon Gold and a cash payment in the amount of $0.79 per share. The total consideration for the purchase of 100% of the fully diluted in-the-money shares of Capital Gold is approximately $288 million or $4.57 per Capital Gold share based on Gammon Golda™s closing price on September 24, 2010

The investigation concerns, among other things, whether the consideration to be paid to CDC shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of CDC. Indeed, analysts have projected that CDCa™s true inherent value is in excess of $10 per share. The investigation further concerns whether the board of directors of CDC may have breached their fiduciary duties by not acting in CDC shareholders' best interests in connection with the sale process of CDC.

If you own CDC common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact

Tripp Levy
Tripp Levy PLLC
125 East 82^nd Street
9^th Floor
New York, New York
Toll Free: 877-772-3975
Email: [ contact@tripplevy.com ]

Tripp Levy PLLC is a national law firm that specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States.

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