PERTH (miningweekly.com) – ASX-listed Crusader Resources has officially pulled the plug on a proposed merger with Aim-listed Stratex International, after that company’s shareholders tanked the deal.
A number of Stratex shareholders called a general meeting in early November to allow shareholders to vote on the proposed merger of the two companies, under which Stratex would have purchased Crusader in an all-scrip transaction which valued the company at A$54-million.
Stratex had offered 6.6 common shares for each Crusader share, which would have left the Australian company with an 81% interest in the combined company.
However, Stratex shareholders vetoed the deal, with the company subsequently terminating the employment of CEO Marcus Engelbrecht.
Crusader on Wednesday told its shareholders that following advice from its legal advisers, the company had formally terminated the agreement with Stratex, and had been advised that it was under no obligation to repay amounts advanced by Stratex under a short-term funding arrangement, for a period of six months from when the repayment is sought by Stratex.
The company would now consider previously received, as well as new approaches from third parties, and would work with advisers to develop a path forward that would best achieve value for shareholders.