After a seven-month suspension, shareholders of electronic marine safety equipment maker Mobilarm (ASX:MBO) could not be blamed for jumping overboard.

Mobilarm first requested a trading suspension in February — and extended it no fewer than five times while awaiting confirmation of a “proposed transaction”.

On Monday, that transaction fell through.

“The third party transaction referred to in the request by the company to suspend trading in its shares has not been completed and is no longer being negotiated,” a company statement said.

Perth-based Mobilarm provides “man overboard” solutions and emergency beacons through subsidiary Marine Rescue Technologies.

In a bid to diversify, the company announced it would invest in music attribution service Jaxsta last May.

At the time, ASX queried the deal, voicing concerns that a planned 40 per cent acquisition of the music company would constitute a change in the nature of Mobilarm’s operations.

“Our strategy to balance our operation through continuing to increase our Jaxsta investment, as funding is required, is on track and now stands at 7.7 per cent with the option to increase this to 40 per cent,” chief executive Ken Gaunt told shareholders in October.

“We believe our ongoing investment has the potential to create substantial returns for all our shareholders.”

Jaxsta announced a partnership with the Recording Academy, the team behind the Grammys, in August this year, with a prototype product expected before year’s end.

But that will now be without Mobilarm’s backing. Chief executive Jorge Nigaglioni told Stockhead that Mobilarm would instead re-focus on its marine safety rental business.

“The Jaxsta investment remains in its place but it is just a passive investment and something we looked at in the past,” he said.

“The transaction that required us to put on a suspension did not materialise… but we are very excited about the future.

“We intend to put new products to market in the next two years and grow our service and rental offerings that are doing well.”

Sales were down last financial year from $7.3 million to $5.3 million

The company had $742,743 in the bank at the end of the period.

Featured Companies

You might be interested in