(Alliance News) - Auctus Growth PLC on Friday said it could not agree terms with a firm it was looking to buy, but confirmed it is still pursuing a reverse takeover amid "competitive" market conditions.
Auctus, which was formed to make an acquisition, reported in April it was in discussions with a firm to assess a potential takeover.
Despite going as far as the due diligence stage, Auctus said talks broke down over the value of the deal and other key terms.
Auctus said: "The harsh reality is that in a competitive marketplace either the quality of opportunities being introduced or the lack finance attached to deals has led to a number of failed processes which has been very frustrating and disappointing for management and shareholders alike.
"However, the board continues to actively evaluate a number a potential transactions across a variety of different sectors. At this time no formal agreement has been entered into by the company however the board remains focused on delivering a transaction that brings both value and growth potential to the shareholders of Auctus Growth in the near term."
In the six months to June 30, the company posted a widened pretax loss of GBP19,388 from GBP12,573 last year. This was due solely to operating expenses, as it reported no net trading income of any kind during the half.
Auctus said: "Costs continue to be prudently monitored and are in line with the previously announced budget of GBP50,000 per annum (the majority of which is comprised of Financial Conduct Authority costs, audit and registrar costs). The directors continue to draw no salary or fees from the company."
Shares in Auctus were untraded in London on Friday morning, last quoted at 32.00 pence each.
By Eric Cunha; ericcunha@alliancenews.com
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