Ademi LLP is investigating Broadmark (NYSE: BRMK) for possible breaches of fiduciary duty and other violations of law in its transaction with Ready Capital.
Ademi LLP alleges Broadmark’s financial outlook and prospects are excellent and yet Broadmark shareholders are expected to receive only 0.47233 shares of Ready Capital common stock for each of share of Broadmark share. The transaction agreement unreasonably limits competing bids for Broadmark by imposing a significant penalty if Broadmark accepts a superior bid. Broadmark insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Broadmark’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Broadmark.