Close The Loop tanks 15% after takeover deal with Adamantem breaks down

Back in November, e-waste recycling stock Close the Loop (ASX:CLG) wanted private Adamantem Capital to buy it such that it agreed to extend the time Adamentem had to conduct due diligence on its books.

Adamantem was proposing a buyout offer of 100% at 27cps – worth $143.59M, compared to CLG’s market cap of $106M cap. The extension ran until January 20, 2025.

It’s now January 21, and there’s no deal.

None was more aware of that than Close the Loop itself on Tuesday.

“As of January 20, 2025, Adamantem continues to progress its due diligence and discussions between the parties are ongoing, however binding transaction documentation has not been executed,” CLG wrote.

“Therefore, in line with Close the Loop’s prior announcements, the Exclusivity Period has now concluded.

“At this stage, Close the Loop shareholders do not need to take any action in relation to the Indicative Proposal and the Directors note that there is no certainty that the parties will enter into binding documentation nor that a transaction of any kind will materialise.”

By 10.30am Sydney time, CLG shares were down -14.9%, to 20.cps.

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