OSLO: Element ASA has announces that the discussions regarding the acquisition of at least 95% of the shares in Harmonychain for a total of 51 million Element considerations shares has been terminated and the conditional NOK 60 million private placement has consequently been cancelled.
Reference is made to the stock exchange notices published on 3 December 2020 regarding the potential acquisition of Harmonychain and the conditional NOK 60 million private placement.
Based on findings in the due diligence process, the Board of Directors of Element concluded that the commercialization stage for the Scrypt microchip would materialize later than initially indicated. To balance the perceived increase in risk, the Board extended an adjusted offer to the shareholders of Harmonychain.
The adjusted offer was not accepted by the sellers and the negotiations regarding a final share exchange agreement have, in agreement with the sellers, therefore been terminated.
The NOK 60 million conditional private placement which Element announced on 3 December 2020 was conditional based on inter alia that Element ASA has entered into a final share exchange agreement with Harmonychain shareholders representing at least 95 % of the Harmonychain shares. As this condition will not be be fulfilled, the private placement has been cancelled, and, consequently, the contemplated repair issue has also been cancelled.
Element will continue to pursue alternative targets for a business combination which can increase shareholder value for all Element shareholders. www.elementasa.com
Element buying Harmonychain for commercialization of blockchain microchip mining system