A Sydney-listed company has pulled out of a share purchase deal to acquire the Roxy Casino in Bavet City, citing slack company procedures that suggest the casino “is not currently ready for public company life,” a filing to the stock exchange says.
Cell Aquaculture Ltd., which entered into an agreement to acquire 100 percent of the casino in March, said in a letter filed with the stock exchange on Wednesday that the casino struggled to find skilled management personnel, particularly in accounting, who were willing to relocate to the border town.
“This inability to appoint staff has caused difficulties with Roxy providing monthly reports to the company during the due diligence process, and provid[ing] meaningful budgets and 24 month expenditure and working capital estimates…. In the circumstances the Company has come to the view that Roxy is not currently ready for public company life, as it is not able to meet the ongoing reporting requirements of ASX in a timely fashion,” the filing says.
After months of refurbishment and the casino’s soft opening in May, Cell Aquaculture reported “modest” profits.
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