Ellington Financial And Great Ajax Corp. Announce Mutual Termination Of Merger Agreement; Ellington Financial Agreed To Pay Great Ajax $16M With $5M Payable In Cash And $11M Paid As Consideration For 1,666,666 Shares Of Stock Purchased At $6.60/Share

Author: Benzinga Newsdesk | October 20, 2023 04:15pm

The termination was approved by both companies' boards of directors after careful consideration of the proposed merger and the progress made towards completing the proposed merger. In addition, Ellington Financial has agreed to pay Great Ajax $16 million of which $5 million is payable in cash and $11 million was paid as consideration for 1,666,666 shares of Great Ajax common stock, which were purchased at a per share price of $6.60. Ellington Financial will now hold approximately 6.1% of Great Ajax's stock. In addition, an affiliate of the external manager of Ellington Financial owned 273,983 shares of Great Ajax common stock as of June 30, 2023. Ellington Financial remains a securitization joint venture partner as well. The two companies intend to continue to work together on mortgage loan opportunities.

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