Syngas Limited (ASX: SYS) has agreed to postpone its proposed acquisition of Ceal Ltd, the operator of the Ardmore Park Quarry and Multiquip Aggregates in New South Wales.
Due to structuring challenges, the parties have agreed to delay and postpone the transaction until the issues can be resolved.
As a consequence the parties have agreed to terminate the Heads of Agreement as announced in January, however are continuing to discuss the potential merger of the two entities.
The transaction was conditional upon a 1 for 200 share consolidation, issue of 22,000,000 new shares to vendor shareholders, and a capital raising of up to $20 million by the issue 20,000,000 new shares at $1 each, with a condition that a minimum of $7.5 million is raised.
Syngas is currently capitalised at around $1 million.
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