Middle Island had offered Alto shareholders five shares in Middle Island for every one Alto share held.
However, Alto’s board recommended its investors to reject the offer.
On May 6, 2019 Alto revealed that it will issue about 16.7 million new ordinary shares and 8.3 million new options to its chairman Terry Wheeler.
Importantly, the agreement to issue the additional Alto securities has triggered a defeating condition of the Middle Island takeover offer.
Offer to lapse or to be withdrawn
Middle Island will not waive the breach of the defeating condition and reserves its right to rely on the trigger of the defeating condition to allow the offer to lapse or to apply for ASIC consent to withdraw the offer.
Middle Island will update Alto shareholders by way of further disclosure if and when it decides to rely on this defeating condition to allow the offer to lapse or apply to ASIC for consent to withdraw the offer.