Trius Investments, Starling Brands call off merger 2020-03-02 17:11 ET - News Release
Mr. Joel Freudman reports
TRIUS AND STARLING TERMINATE PROPOSED REVERSE TAKEOVER
Trius Investments Inc. and Starling Brands Inc. have agreed to terminate their proposed business combination pursuant to the business combination agreement dated July 8, 2019 (as subsequently amended), among Trius, Starling and Trius's wholly owned subsidiary, 11436465 Canada Inc. The termination was effective on Feb. 27, 2020.
Joel Freudman, president and chief executive officer of Trius, stated: "We continue to believe that Starling represents a compelling and unique growth story, led by an experienced and passionate management team. Unfortunately, due to negative developments across the cannabis sector over the past several months, we and Starling have determined that Trius needs to find another transaction candidate in the current market environment. We wish the Starling team all the best as they continue to expand and achieve significant commercial progress."
Added Mike Reynolds, CEO of Starling: "Starling will continue to pursue alternative transactions. We will keep working hard to grow our business for the benefit of our shareholders and those who rely on our products for wellness, and believe that this difficult decision also provides flexibility to Trius and its shareholders."
Starling has paid Trius a termination fee of $125,000 in cash.
Trius will recommence its search for new business opportunities and/or transaction partners, with a focus on established, revenue-generating businesses. In addition, Trius will seek the resumption of trading of its common shares on the NEX board of the TSX Venture Exchange.