Amigo Holdings, the U.K. guarantor-loan provider, has announced that its proposed deal to enter the music and film streaming industry has fallen through. The company, which is currently winding down its operations, revealed that the exclusivity agreement it had signed on October 17 with Craven House Capital and other parties to explore potential transactions has been terminated at the request of various individuals.
The deal had the potential to result in a reverse takeover, with Amigo acquiring assets such as the music streaming service ONE Bas.com, the digital magazine platform Magazinos, the film streaming service TV Zinos, and the payments provider Payzinos. In return, newly issued shares and a minimum cash subscription of £5 million ($6.2 million) were to be offered.
Amigo’s Chief Executive, Danny Malone, expressed disappointment at the news and stated that the group remains open to considering other viable options that would be beneficial to shareholders and stakeholders.
The company intends to request the lifting of the temporary suspension on its shares, which has been in place since the announcement of the proposed transaction.