Canadian entertainment company Entertainment One (E1) has reversed its planned reverse takeover of Halifax production company DHX Media.
Announced in September, the move would have given E1 a listing on the Toronto Stock Exchange; E1, financed by the UK-based hedge fund Marwyn, currently has a listing on the LSE's AIM.
In a release, E1 said its senior lenders would not consent to the DHX transaction, set to close January 31, 2009. The transaction was conditional on such consent. E1 said it had asked DHX for an extension beyond January 31 but was rejected. As well, E1 said a proposal for a revised arrangement was rejected.
When the transaction was announced DHX shares were trading at C$0.85. E1 was offering C$1.59 a share, or approximately C$68m. Yesterday, DHX shares closed at C$0.425.
In as statement, E1 CEO Darren Throop said the company would independently pursue a primary listing on the TSX during this fiscal year. He said E1's four-year US$150 million senior credit facility through JP Morgan also would provide access to additional capital 'for continued future growth in line with our strategy.'
A DHX spokesperson was unavailable for comment.
On December 3, E1 announced interim results in line with its expectations. Its most recent release, Twilight, was the highest grossing film in Canada in the last two weeks. The company will release the film in the UK on December 19.
Announced in September, the move would have given E1 a listing on the Toronto Stock Exchange; E1, financed by the UK-based hedge fund Marwyn, currently has a listing on the LSE's AIM.
In a release, E1 said its senior lenders would not consent to the DHX transaction, set to close January 31, 2009. The transaction was conditional on such consent. E1 said it had asked DHX for an extension beyond January 31 but was rejected. As well, E1 said a proposal for a revised arrangement was rejected.
When the transaction was announced DHX shares were trading at C$0.85. E1 was offering C$1.59 a share, or approximately C$68m. Yesterday, DHX shares closed at C$0.425.
In as statement, E1 CEO Darren Throop said the company would independently pursue a primary listing on the TSX during this fiscal year. He said E1's four-year US$150 million senior credit facility through JP Morgan also would provide access to additional capital 'for continued future growth in line with our strategy.'
A DHX spokesperson was unavailable for comment.
On December 3, E1 announced interim results in line with its expectations. Its most recent release, Twilight, was the highest grossing film in Canada in the last two weeks. The company will release the film in the UK on December 19.
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