Transaction in its current form will be very risky for all parties if the resulting company is not able to list on the TSX, Aberdeen said.
Aberdeen International Inc. (TSX: T.AAB, Stock Forum) said Friday that due to potential regulatory challenges, it and Dacha Strategic Metals Inc. (TSX: V.DSM, Stock Forum) have mutually agreed to terminate a previously announced business combination.
Dacha and Aberdeen were unable to secure satisfactory assurances that the transaction in its proposed form would result in an immediate TSX listing on closing as the pro-forma company would not meet the net income tests required by the TSX.
“This would put the shareholders of Aberdeen in a disadvantaged position with respect to the combined company’s ongoing business activities,’’ Aberdeen said in a press release.
Trading at 37.5 cents on Friday, Aberdeen has a market cap of $32.6 million, based on 86.9 million shares outstanding. The 52-week range is 71 cents and 35 cents. Dacha was unchanged Friday at 51 cents, leaving the company with a market cap of $38.3 million, based on 75.1 million shares outstanding.
The 52-week range is 71 cents and 32.5 cents.