Thumbs down for Nickelore solar acquisition after 18 months of work
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Explorer Nickelore has pulled the pin on a foray into solar energy, after a plan to buy Brazilian rooftop solar supplier Helio fell through.
Nickelore (ASX:NIO) shares have been suspended from trade for more than a year as it worked on the deal, which was announced back in January 2016.
At the time, Nickelore announced the acquisition as “an opportunity to enter an exciting new market with strong prospects for growth”.
As recently as July, Nickelore said the acquisition would “result in a significant change to the nature and scale of the company’s main business, which the Nickelore board considers to be positive and in the best interests of Nickelore shareholders”.
On Thursday that plan came unstuck.
“Helio has advised the company that it has changed strategy and will not be proceeding with the transaction,” Nickelore told investors.
The company would “now evaluate its position and … will also be evaluating a number of other opportunities.”
Nickelore still has an interest in a nickel exploration project in WA, but had planned to sell off the project after completing the Helios deal.
With just $178,000 in the bank at the end of June and no revenue streams, the company is now considering its options.