It's not unusual for a company to do due diligence on a proposed takeover or merger target, and decide not to proceed if they find that the expected benefits of proceeding do not outweigh the possible downside.
Developing the Canadian hydroponics arm organically but in co-operation with another business in the same field might turn out to be a good option, without risking any capital in a takeover deal.
Ann: Canadian Hydroponics Division and Restatement of Objectives, page-9
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