Meteoric Resources cancels its plan to buy People Post, gets $250,000 exclusivity fee back
Less than two months after mining firm Meteoric Resources announced its plan to buy courier company People Post, the deal fell apart for unknown reasons.
On February 1, Meteoric declared its plan to acquire People Post in an all-share deal in exchange for 370 million shares, with an indicative value of $8.1 million at a market price of $0.022 per share.
The diversified mineral explorer also paid a $250,000 exclusivity fee to Peoples Post, which was returned once the deal was called off.
However, less than two weeks after the announcement Meteoric requested a trading halt to “facilitate an orderly market in the company’s securities pending an announcement in relation to the signed Heads of Agreement entered into with People Post”.
The trading halt remained in place until March 17, when it eventually announced the deal was off.
“Parties to the heads of agreement to acquire People Post as advised to the Australian Stock Exchange (ASX) have agreed to not to proceed with the transaction,” a company announcement stated.
Headquartered in Sydney, People Post says it services across Australia, Europe and China.
The company has earlier reported a 100 per cent month on month growth since October 2015, with a “highly scalable revenue and business development model”.
ATN is awaiting comment from both companies on why the deal was cancelled.