Hexima Limited (ASX:HXL) Announces Termination of Acquisition

Acquisition Details

Hexima Limited (ASX:HXL) has announced that the proposed acquisition of RealThing Entertainment Pty Ltd will not proceed. This decision comes as the Board assesses the inability to meet various conditions precedent necessary for the acquisition, which include shareholder approvals and raising capital to comply with ASX Listing Rules.

Board’s Decision

The Board concluded it could not ensure that capital raising and general meeting arrangements would be satisfied by the deadline of 16 December 2024. Thus, they determined that it would be imprudent to allocate resources toward calling the general meeting for approvals. As a result, Hexima has provided notice to terminate the share sale agreement with RealThing and its vendors, with no exit fees due under the agreement.

Future Outlook

Following this development, Hexima is exploring opportunities related to its biotech intellectual property portfolio, which includes retained royalty rights. The Company remains open to alternatives and anticipates making further announcements on potential opportunities.

Financial Position

According to the September 2024 quarterly activities report, Hexima closed the quarter with nearly $2 million in cash. With the scrapping of the acquisition, no general meeting will be necessary for the resolutions related to the acquisition or associated matters.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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