Celsius falls on breakdown of negotiationsA few months ago...

Celsius falls on breakdown of negotiations
A few months ago Celsius announced a deal with
Silvercorp Metals. At the time the transaction looked
positive for Celsius shareholders but the share price was
still selling at a discount to what was expected to be the
final figure. You can put that down to transactional risk.
There was no guarantee that the deal would be concluded
successfully and in fact, it has been reported that “The two
companies have not agreed on the terms of a definitive
agreement in line with those contained in the Term Sheet
and currently no negotiation is ongoing.” So, it looks like
the deal is dead.
The proposal by Silvercorp to buy the MCB copper project
was quite astute at the time, in the pre-permitting stage,
knowing that the project had a good chance of being
substantially de-risked by the time the acquisition
completed. However, it hasn’t quite worked out that way for
Silvercorp. Celsius shareholders expressed concern that
the deal could be improved upon and the Celsius Board
has responded accordingly.
The period of exclusivity has expired and it remains to be
seen whether Silvercorp are prepared to pay a higher
price. In the meantime the shares have come off by more
than 50% since the announcement. While it is a kick in the
guts for shareholders who were banking on the transaction,
the game isn’t over. Let us see who else might be
interested.