SHAREHOLDER NOTICE: Brodsky & Smith Announces an Investigation of Broadmark Realty Capital Inc. (NYSE – BRMK)

BALA CYNWYD – February 27, 2023 /Newsfile/ – Law office of Brodsky & Smith announces that it is investigating potential claims against the Board of Directors of Broadmark Realty Capital Inc. (“Broadmark” or the “Company”) (NYSE – BRMK) for possible breaches of fiduciary duty and other violations of federal and state law in connection with the Company’s agreement to merge with Ready Capital Corporation (“Ready Capital”) (NYSE -RC). Under the terms of the agreement, each share of Broadmark common stock will be converted into 0.47233 shares of Ready Capital common stock. The respective closing stock prices for Ready Capital and Broadmark on February 24, 2023 imply an offer price of $5.90 per Broadmark share. Upon the closing of the merger, Ready Capital stockholders are expected to own approximately 64% of the combined company’s stock, while Broadmark stockholders are expected to own approximately 36% of the combined company’s stock.

The investigation concerns whether the Broadmark Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including the dilution to Broadmark shareholders in the combined company and whether the deal price is too low.  For example, the implied deal consideration is below the 52-week high of $8.91 for the Company’s shares.

If you own shares of Broadmark stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Marc L. Ackerman, Esquire at Brodsky & Smith, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, or call toll free 855-576-4847.

Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.