A planned backdoor listing by Perth technology business Cloud Lands Digital Fortress, which was established by prominent company promoter Ross Smith, has been cancelled.
Listed exploration play Resource Star announced today that the deal had been terminated by mutual agreement.
It noted that the deal was dependent on a number of conditions, including a $3.5 million capital raising.
Resource Star’s planned move into the technology space was announced in August last year.
Three months later, Resource Star said it had exercised its option to acquire Cloud Lands, which in the interim had struck two deals with Fujitsu, for access to its IT services and its data centre.
Cloud Lands was founded by Mr Smith, who recently made headlines when he resigned from the board of newly-listed medical marijuana company PhytoTech Medical in controversial circumstances.
Mr Smith told Business News he had resigned from Cloud Lands in late November, after Resource Star had exercised its purchase option.
He was not a director of Cloud Lands but had been an investor relations consultant.
In a statement, Resource Star said today that Cloud Lands would pursue a new corporate strategy that may include an initial public offering on the ASX.
Resource Star said its own board was reviewing alternative investment opportunities.