YESTERDAY morning Cellular Goods informed investors that its proposed £18.6m reverse-takeover deal with Cannaray has been scrapped.
In a brief RNS, the CBD retailer said it had ‘terminated negotiations in relation to the transaction’, first announced in September last year.
Cannaray has informed BusinessCann that the deal has been pulled due to the ‘decrease in Cellular Goods’ share price’ since its initial negotiations.
The news sent Cellular Goods’ already heavily depressed share price plummeting further throughout the day yesterday to hit lows of 0.54p at the time of writing.
With the proposed deal seen as a life jacket for the struggling company, providing Cellular Goods with a much-needed access to capital, marketing and a supply chain to expand its lacklustre sales, questions are now being raised over the company’s future.