Tera Group Inc. and MGT Capital Investments Inc. signed a letter of intent (LOI) to merge and allowing the former to become a publicly traded company. However, the reverse merger agreement that was supposed to take Tera public has hit an obstruction.
The details of the agreement were to be finalised by Monday this week, but the parties did not agree upon a binding extension. Moreover, MGT Capital did not specify the particular aspects of the agreement that needed revision.
Both the companies have made requests for further clarification, but no reply has been received yet.
"The upside opportunity of a deal is extraordinary for our stockholders, and we remain committed to working with Tera management and legal team to finalize the complex agreement", Robert Ladd, CEO of MGT, commented in a press release.
