08/10/2014 - 14:46

Cell backs out of Cambodian casino buy

08/10/2014 - 14:46

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Perth-based marine farming company Cell Aquaculture has cancelled a deal with Noble Rate to buy its Roxy Casino in Cambodia after it failed to source skilled workers and keep up with ongoing reporting procedures.

The Chinese city of Haikou.

Perth-based marine farming company Cell Aquaculture has cancelled a deal with Noble Rate to buy its Roxy Casino in Cambodia after it failed to source skilled workers and keep up with ongoing reporting procedures.

Cell said the decision had been made following discussions about the problems Roxy has had finding and employing skilled management staff, particularly in the accounting department, who were prepared to relocate to the area.

“This inability to appoint staff has caused difficulties with Roxy providing monthly reports to the company during the due diligence process, and provide meaningful budgets and 24 month expenditure and working capital estimates,” Cell said in a statement.

“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.”

Meanwhile, Cell said it had to alter its share sale agreement with Tang Dashun and Beijing Properties over full ownership of the Haikou project, the first and only shopping centre to be constructed in a free trade zone in China, after delays in completing the acquisition.

Cell said its vendors had to advance about $3.42 million in funds to Rayport and Haikou Peace Base Industry Development, the legal owners of the Haikou project.

“The vendors and the directors of the company have agreed to vary the share sale agreement with BPH to provide for the repayment of the vendor loans, from the capital raising of $45 million to be conducted under a prospectus,” the company said.

The heads of agreement to acquire the projects was originally priced at $83 million.

The centre will be constructed on a 44,000 square metre property, and will consist of several multi-storey buildings containing factories, warehouses and a retail complex.

It is due to open in April next year.

Cell’s share price closed 1 per cent lower at 9.8 cents per share.

 

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