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Starcrest Education backs out of acquisition of National Training Company
10th Dec 2021 15:36
(Sharecast News) - Shares in Starcrest Education resumed trading on Friday, after the company confirmed the cancellation of its intended acquisition of National Training Company (NTC), which it initially announced on 6 August.
The London-listed firm said the non-legally binding heads of terms it had signed comprised the acquisition of up to 80% of the issued share capital of NTC, and put options to require it to purchase the remaining 20% of NTC, which would amount to a reverse takeover under the listing rules.
On 6 August, at the time of the announcement, the directors of Starcrest said they considered NTC to be an "excellent opportunity".
They said in a statement on Friday that they still did, but that due to current market conditions, it was no longer able to proceed with the reverse takeover.
"The company's funds as of 9 December totalled £70,000," the board said.
"On 28 September, the company announced that it has received a letter of support confirming that up to a further £0.5m is available from its parent company, Starcrest Education Management Company, in the event the proposed transaction does not proceed.
"In this regard, the company has now requested funds from Starcrest Education Management to support the company while it determines its ongoing strategy as a listed company."
The London-listed firm said the non-legally binding heads of terms it had signed comprised the acquisition of up to 80% of the issued share capital of NTC, and put options to require it to purchase the remaining 20% of NTC, which would amount to a reverse takeover under the listing rules.
On 6 August, at the time of the announcement, the directors of Starcrest said they considered NTC to be an "excellent opportunity".
They said in a statement on Friday that they still did, but that due to current market conditions, it was no longer able to proceed with the reverse takeover.
"The company's funds as of 9 December totalled £70,000," the board said.
"On 28 September, the company announced that it has received a letter of support confirming that up to a further £0.5m is available from its parent company, Starcrest Education Management Company, in the event the proposed transaction does not proceed.
"In this regard, the company has now requested funds from Starcrest Education Management to support the company while it determines its ongoing strategy as a listed company."