Alto Metals Ltd (ASX:AME) has been granted a trading halt by the ASX pending an update on the shortfall placement shares in relation to the current takeover offer from Middle Island Resources Ltd (ASX:MDI).
The trading halt will remain in place until the start of trading on Thursday, May 16, 2019, or when an announcement is made, whichever occurs first.
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 had triggered a defeating condition of the Middle Island takeover offer.