TechPrecision Corporation TPCS shares are trading higher after the company announced the termination of the agreement to acquire Votaw Precision Technologies.
In particular, the company disclosed the termination of the Stock Purchase Agreement (SPA) between TechPrecision and Doerfer Corporation to acquire Votaw.
On April 2, 2024, Doerfer simultaneously notified that it was terminating the SPA effective immediately and, by a separate term sheet, offered to reinstate the SPA and extend the outside closing date in exchange for material concessions from the company.
After several days of negotiating the proposed reinstatement and extension terms, the company and Doerfer failed to reach an agreement, and the SPA remains terminated.
According to Section 7.02(a) (Termination Fee), Doerfer expects the company to issue 320,000 shares of TechPrecision to Doerfer and is reviewing the situation.
As part of the now terminated acquisition financing, the companies are engaged in confidential discussions with potential investors under Non-Disclosure Agreements (NDAs), under which we agreed, limited to the extent necessary, to publicly disclose certain information, including material non-public information.
On November 22, 2023, TechPrecision announced that it has entered into a definitive SPA to purchase all of the outstanding shares of Votaw for $85 million on a cash and debt-free basis.
Price Action: TPCS shares are up 24.84% at $4.12 on the last check Monday.
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