RE:What Happened ??Looks like this deal was set @ $1.00 per share so maybe the parties are needing to renogotiate this taking into account the share price of AFI since the deal was announced?
The wording of the announcement was very clear and definite on the June 30th deadline. If this deal falls through and doesn't go ahead I think this should be actually viewed as good news. Never could see much reason for AFI to do the deal in the first place. AFI can make much better use of their financial resources in fast tracking the construction of the Saskatchewan grow house.
Basic terms of the LOI provide for the acquisition of all the securities of Fab-All Manufacturing and associated Sig & Ron Ltd. for an aggregate of $5-million in cash and $5-million in common shares at a deemed price of $1 per share. The assets of Fab-All include a 30,000-square-foot building, four acres of land and all the state-of-the-art machinery. Fab-All owner Ron Adolf and his team would continue to manage operations, however it would be 100 per cent owned by Affinor.
The acquisition will be subject to the parties entering into a definitive acquisition agreement, including standard not-compete provisions for principals and the corporation's due diligence, which is expected to be completed in a timely manner, but no later than June 30, 2014.