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IDT Australia (ASX:IDT) has confirmed its proposed takeover offer from a company called Myndbio for 15cps has been scrapped.
While that deal was higher than IDT’s 11.5cps closing price on Tuesday, IDT says that somewhere along the way during its own Due Diligence activities, Mynd simply stopped getting back to the company.
“Following completion of its due diligence, Mynd has not submitted an updated proposal in a timely manner that could be considered by the board of directors of IDT,” the latter wrote on Wednesday.
“Accordingly, at this time, the Board does not consider that continued engagement with Mynd in connection with the Proposal is in the best interests of IDT shareholders and so has terminated discussions.”
What does that truly mean in between the lines? Who knows ā the reasons for “continued engagement” not being in the best interests of shareholders could mean a lot of things. (They’re not necessarily talking about the price of the offer at 15cps.)
But the most obvious implication is that Mynd didn’t like what it saw of the clinical goods manufacturer.
It’s been hard for IDT lately ā an oversupplied cannabis products market hurt it in the first half of FY24; it’s a loss-making company, its best business segment (Active Pharmaceutical Ingredient [API] manufacture) netted it $5.5M in FY24.
Perhaps most notable is that in the outlook section of its FY24 report, IDT described itself as at the start of its “recovery journey.”
(The first dot point on the first slide of its full year presentation was titled “returning to profitability.”)
IDT last traded at 11.5cps.
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