Shares of Lithium X Energy Corp. fell over 20% from the Feb. 27 closing price on March 1 as shareholders doubted the ability of the company's potential buyer, NextView New Energy Lion HongKong Ltd., to pay the C$265 million price tag.
The reservations were fueled by NextView's failure to complete its previously reported £31.2 million investment in Bacanora Minerals Ltd.
The Chinese institutional fund management group had agreed in December 2017 to acquire a 19.89% interest in Bacanora. However, NextView failed to forward the proceeds to the company, leaving it in default.
According to the March 1 release by Lithium X, NextView told the company on Feb. 27 that it is finalizing the debt facilities to satisfy the cash consideration for the arrangement.
"If it is not finalized before the end of next week, [NextView] will draw-down on its funding commitment from Tibet Summit in order to fund the arrangement no later than March 9, 2018," Lithium X wrote.
Under the definitive agreement, Lithium X will have to pay C$15.9 million and NextView will pay a reverse break fee of C$20 million if either party terminates the agreement.
Lithium X noted Feb. 15 that all conditions have been fulfilled except for the receipt of the cash from NextView.
