We are investigating Kirkland Lake Gold Ltd. (KL) (“Kirkland” or the “Company”) for potential violations of the federal securities laws.
On November 25, 2019, Kirkland announced entry into a definitive agreement to acquire all outstanding securities of Detour Gold Corporation for $3.68 billion (the “Detour Acquisition”). Following the announcement, investment analysts questioned the economics of the Detour Acquisition, which had the effect of significantly increasing Kirkland’s all-in sustaining costs and was extremely dilutive of Kirkland’s reserve grade, and downgraded the Company’s price target. On news of the Detour Acquisition, Kirkland’s stock price fell $8.18 per share, or 17.18%, to close at $39.44 on November 25, 2019.