The attempt by Cacola Furniture International to reverse its fortune with a new business venture has hit a snag.
Cacola announced this morning the proposed reverse takeover of the group by Sharp Year Ventures has been terminated.
Explaining the move, Cacola says the market conditions are not conducive for raising funds to satisfy the cash consideration.
In addition, the company and the vendor believe that certain conditions precedent are unlikely to be fulfilled by the Long-Stop Date.
“Accordingly, the Company and the Vendor have by mutual agreement, entered into a deed of termination on 29 September 2015,” says Cacola.
In April, Cacola announced the group was to be acquired by He Liangping, through Goyes Investment Holdings Group. After a restructuring exercise, Sharp Year - which is owned by He - will be the sole shareholder of the target group.
The businesses in the target group focus on livestock breeding, meat processing and related trading, tourism as well as property development.
Cacola will pay Sharp Year a maximum of 1.32 billion yuan ($296 million), of which 250 million yuan will be paid in cash and 1.07 billion yuan will be paid through new Cacola shares.
To fund the cash portion, Cacola plans to carry out fund raising activities, with details to be announced later.
Cacola was placed on the SGX Watch-list on March 5 after it recorded pre-tax losses for the three consecutive financial years.
Cacola last traded at 0.9 cent.
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Cacola announced this morning the proposed reverse takeover of the group by Sharp Year Ventures has been terminated.
Explaining the move, Cacola says the market conditions are not conducive for raising funds to satisfy the cash consideration.
In addition, the company and the vendor believe that certain conditions precedent are unlikely to be fulfilled by the Long-Stop Date.
“Accordingly, the Company and the Vendor have by mutual agreement, entered into a deed of termination on 29 September 2015,” says Cacola.
In April, Cacola announced the group was to be acquired by He Liangping, through Goyes Investment Holdings Group. After a restructuring exercise, Sharp Year - which is owned by He - will be the sole shareholder of the target group.
The businesses in the target group focus on livestock breeding, meat processing and related trading, tourism as well as property development.
Cacola will pay Sharp Year a maximum of 1.32 billion yuan ($296 million), of which 250 million yuan will be paid in cash and 1.07 billion yuan will be paid through new Cacola shares.
To fund the cash portion, Cacola plans to carry out fund raising activities, with details to be announced later.
Cacola was placed on the SGX Watch-list on March 5 after it recorded pre-tax losses for the three consecutive financial years.
Cacola last traded at 0.9 cent.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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