The company that was set to buy Input Capital Corp. has backed out of the deal.
The publicly-traded company, based in Saskatchewan, announced an agreement to be bought by Bridgeway National Corp. in August 2020 for approximately $97.5 million.
Input Capital offers canola “streaming” financing, where the company provides capital in exchange for a stream of canola via multi-year fixed-volume canola purchase contracts.
Eric C. Blue, Bridgeway CEO, sent a letter to Input Capital indicating that the Washington, D.C.-based company was “not in a position to complete the Plan of Arrangement” as set out in the purchase agreement.
Bridgeway will pay the termination fee set out in the original agreement.
Input’s board of directors says it will return to the company’s strategic plan that was in place prior to the August 12, 2020 announcement, and that it will “continue to consider internal or external proposals that would enhance and grow shareholder value.”
Input postponed capital deployment in May of 2019 in light of canola trade uncertainties with China and the effect of this uncertainty on capital availability.