QT Vascular shares see sell-off after proposed reverse takeover falls through
Fiona Lam
Singapore
QT Vascular's (QTV) share price lost ground amid active trading on Monday, after the Catalist-listed medtech company announced that a proposed reverse takeover involving a Mongolian mining and energy firm had fallen through.
The stock lost 0.3 Singapore cent or 33.3 per cent to trade at 0.6 cent as at 10.01am. It closed at 0.7 cent, down 0.2 cent or 22.2 per cent from Friday's close, after about 190 million shares changed hands.
It was the sixth-most actively traded by volume on the Singapore bourse for the day.
The balloon catheter specialist said in a bourse filing on Sunday night that the conditional sale and purchase agreement (SPA) for its proposed acquisition of Tengri Coal and Energy (TCE) was scrapped, as the deal's conditions precedent were not met by the deadline.
In August, QTV had said it was looking to acquire the entire interest in TCE for S$1 billion in cash and new shares.
In the Sunday filing, QTV noted that the SPA ceased because two conditions precedent were not fulfilled or waived as at Nov 21: The compliance placement was supposed to have been finalised while the parties were to obtain the Singapore Exchange's approval, both within three months from the SPA's date.
If completed, the deal would have resulted in an RTO of QTV, with the medtech firm's existing assets and liabilities disposed of so that it would become a shell company into which TCE could be injected. QTV's board had said in August that the RTO would give the company "a new lease of life" and potentially increase its market capitalisation.
Singapore-incorporated TCE's operating entities are Tengri Petrochemicals, which holds mining licences issued to mine coal deposits in Mongolia, and Tsaidam Energy, which holds licences to construct power plants and energy facilities in the country.
On Sunday, QTV said it will continue to source for other corporate opportunities as and when available, to enhance value for shareholders.
It added that the cessation of the SPA for TCE is not expected to have a material impact on the group's consolidated net tangible assets or earnings per share for 2020.
On Aug 25, QTV's share price had more than doubled to close at 1.7 Singapore cents, after the planned RTO was unveiled. Investors at the time cheered the prospects of a potential turning point for the firm. Following that, during the stock's rally, QTV chief executive Eitan Konstantino and its largest shareholder Tanhum Feld separately offloaded their holdings.
