Mobile social networking platform developer MOKO.mobi (ASX:MKB) has abandoned its planned $5.5 million purchase of a US mobile community business, after it was unable to come to terms with the buyer.
The company in March revealed plans to buy the mobile social business developed by Cellfish Media in an all-stock transaction for 27.5 million MKB shares.
But on Tuesday, MOKO.mobi said that it had pulled its offer after it became clear that the negotiations would not result in an agreement on purchase contract terms.
The decision to terminate negotiations was made in order to “preserve [our] working relationship and mutual desire to explore new marketing initiatives,” the company said in a statement.
A planned $5 million capital raising planned to support the acquisition will also be cancelled, MOKO.mobi said.
The company added that it is currently evaluating some other potential acquisitions, and is being advised by Merriman Capital on capital markets activities.
The company's purchase of UK-based mobile video community site EyeVibe closed in March.
MKB shares stayed flat on Tuesday at $0.085.
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