Aberdeen International Inc. and Dacha Strategic Metals Inc. Terminate Business Combination Agreement
TORONTO, ONTARIO--(Marketwire - Oct. 12, 2012) - Aberdeen International Inc. ("Aberdeen" or the "Company") (TSX:AAB) announces that due to potential regulatory challenges set out below, the parties have mutually agreed to terminate the previously announced business combination agreement entered into between the Company and Dacha Strategic Metals Inc. ("Dacha") (See Press Release dated August 15, 2012). Dacha and Aberdeen were not able to receive 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 as 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.
David Stein, President and Chief Executive Officer of the Company, noted that, "Aberdeen still believes the transaction in principle holds significant merit, however, the transaction in its current form will be very risky for all parties if the resulting company is not able to list on the TSX. As a result, the respective special committees and boards of both companies have decided not to proceed with the transaction at this time. Aberdeen continues to be committed to pursue both conventional and creative initiatives to increase shareholder value and we are very grateful for the support from shareholders we received over the past few months."
No break fees will be paid as result of the termination and each party will pay its respective expenses incurred in connection to the proposed business combination.