- Gooroo Ventures has pulled out of a $20.1 million merger with software company AIS Anywhere
- Gooroo planned to buy out AIS back in August, and company shares were suspended as it performed some due diligence
- The ASX told Gooroo shares would likely be denied readmission, however, if the merger went ahead
- Gooroo decided it was best to pull out of the deal, and will keep shares out of trade until it comes up with a new plan
- Gooroo shares have been suspended since they closed for 5.4 cents each on July 31, 2019
Gooroo Ventures pulled the rug from under its $20.1 million takeover of software company AIS Anywhere today.
The deal was initially announced in early August, with Gooroo later seeking $1.5 million in funds from investors to support the buy.
Gooroo and AIS both work in the artificial intelligence (AI) realm, so it was hoped the companies could combine forces to expand globally and help lead AI integration into the average workplace. After Gooroo completed its due diligence, however, it seems the relationship was not meant to be.
Gooroo shares were suspended from trade as the company took the necessary action to make sure the merger went ahead smoothly.
Unfortunately, the company told the market today the Australian Securities Exchange (ASX) said there was a high chance it would decline Gooroo’s application for readmission to the market should it go ahead with the AIS purchase.
Following some thorough due diligence, Gooroo has decided to call it quits with AIS.
The company said it is now reviewing its options and eyeing out some other potential mergers.
Ironically, the company will keep its shares suspended until it comes up with a new game plan — meaning shares have not traded since they closed for 5.7 cents each on July 31, 2019.
The company said its Board is disappointed with the outcome but insists its decision was in the best interests of shareholders. While punters may be eager to see some movement once more in Gooroo shares, the company has asked for more patience as it makes some crucial decisions.