Magnetite Mines Ltd. said it terminated the proposed acquisition of Lodestone Equities Ltd. from Coffee House Group Ltd., which is indirectly owned by Magnetite Chairman and CEO Gordon Toll. The executive will step down as a result of the failed deal.
Since the terms of the acquisition were not in line with certain ASX requirements, the parties engaged in discussions to amend the proposal but were unable to reach a deal.
The parties struck a deal releasing them from any claims arising out of the proposed transaction.
Toll, who is also a director, resigned from the company as a result of the deal termination. The company plans to seek shareholder approval to give him a total of 30 million options since he did not draw a cash salary between January 2017 and June 2018.
The company said Sept. 3 that it will appoint Peter Schubert as chairman and the existing board will carry out the duties of a CEO until a successor is named.