(Sharecast News) - Multimedia and branded content company Immedia has terminated talks with Sprift Technologies, it announced on Thursday, with immediate effect.
The AIM-traded firm said that as the proposed acquisition would have been classified as a reverse takeover under the AIM rules, its shares were suspended from trading from 0730 GMT on 26 March.
As a result of due diligence and subsequent valuation discussions, the negotiations had now been terminated, and the company had requested the suspension of trading in its shares to be lifted from 0730 BST on 15 July.
As it had previously announced, Immedia agreed to provide Sprift with a secured loan facility of up to £0.9m for working capital purposes in three tranches, which had now been drawn in full. Immedia said that as it had withdrawn from reverse takeover negotiations, the loan had become repayable, in full, in 12 months from the withdrawal from negotiations, and would attract interest at a rate of 15% per annum, payable monthly.
"The company is negotiating with Sprift for the recovery of costs of up to £150,000, which would be added to the amount owed to Immedia in respect of the loan, on the same terms," the board said in its statement.
"The directors currently believe that Sprift will be able to repay the Loan in accordance with its terms, but this may be dependent on its future trading performance and its ability to secure additional working capital funding as and when required.
"The loan is secured by a debenture containing fixed and floating charges over Sprift's business and assets, granted by Sprift in favour of Immedia."
Following the drawdown of the loan, the company said it had net cash of £2.09m available as at 30 June.
Immedia's directors said they were continuing to consider divestment options for its main trading subsidiary, Immedia Broadcast, noting that any proposed disposal would require the approval of shareholders.
At 1603 BST, shares in Immedia Group were down 48.31% at 18.35p.
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