Mayne Pharma rejects Cosette's scheme termination notice
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The news: Mayne Pharma has rejected a notice by former suitor Cosette Pharmaceuticals seeking to terminate the companies' scheme implementation deed (SID).
The context: After market closed on Tuesday, Cosette issued a termination notice, flagging Mayne's failure to satisfy Foreign Investment Review Board (FIRB) precedent, and requiring the parties to consult in good faith.
Mayne said this morning that it has attempted to engage in good faith, but "has not been able to reach any position with Cosette that might allow the scheme to proceed".
It consequently said Cosette's termination notice is invalid because it failed to comply with its obligations under the SID and that failure "directly and materially" contributed to a failure to satisfy FIRB precedent.
Last week, Mayne accused US-based Cosette of "wilful and intentional" material breaches of the SID, which had the effect of preventing FIRB approval.
Cosette attempted to terminate its takeover of ASX-listed Mayne earlier this year, before Treasurer Jim Chalmers eventually killed the deal after refusing FIRB approval amid concerns Cosette would close Mayne’s manufacturing facility in Salisbury, South Australia.
The source: ASX
