Aberdeen International Inc. and Dacha Strategic Metals Inc. Terminate Business Combination Agreement
TORONTO, ONTARIO -- (Marketwire) -- 10/12/12 -- Aberdeen International Inc. ("Aberdeen" or the "Company") (TSX: AAB) announces that due to potential regulatory challenges set out below, the parties have mutually agreed to terminate the previously announced business combination agreement entered into between the Company and Dacha Strategic Metals Inc. ("Dacha") (See Press Release dated August 15, 2012). Dacha and Aberdeen were not able to receive satisfactory assurances that the transaction in its proposed form would result in an immediate TSX listing on closing, as the pro-forma company would not meet the net income tests as required by the TSX. This would put the shareholders of Aberdeen in a disadvantaged position with respect to the combined company's ongoing business activities.
David Stein, President and Chief Executive Officer of the Company, noted that, "Aberdeen still believes the transaction in principle holds significant merit, however, the transaction in its current form will be very risky for all parties if the resulting company is not able to list on the TSX. As a result, the respective special committees and boards of both companies have decided not to proceed with the transaction at this time. Aberdeen continues to be committed to pursue both conventional and creative initiatives to increase shareholder value and we are very grateful for the support from shareholders we received over the past few months."
No break fees will be paid as result of the termination and each party will pay its respective expenses incurred in connection to the proposed business combination.
ABOUT ABERDEEN
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-initial public offering and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with moderate local political risk. Aberdeen seeks to provide value-added managerial and board advisory services to companies. Aberdeen's intention is to optimize the return on its investment over an 18 to 24 month investment time frame.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the future intentions of the Company with regard to its shareholdings; the Company's plan of business operations; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Contacts:
Aberdeen International Inc.
Mike McAllister
Manager, Investor Relations
+1 416-309-2134
info@aberdeeninternational.ca
Aberdeen International Inc.
David Stein
Chief Executive Officer
(416) 861-5812
dstein@aberdeeninternational.ca
www.aberdeeninternational.ca