MIDL Parties over folks
Tuesday June 16, 10:51 am Eastern Time
Midland Inc rescinds merger with Arcon
DENVER, June 16 (Reuters) - Midland Inc. said Tuesday that it is rescinding its reverse merger with Arcon Energy Inc. and that John Spriggs, who replaced Dan Fisher as chief executive last week, has resigned.
In January, Midland said it had acquired Arcon -- a company that makes a high quality gasoline blendstock that is rich in octane and oxygen -- in a transaction valued at $50 million, paid for with the company's preferred stock.
As part of the ''reverse merger,'' Arcon was to take over management of the combined company. Arcon's Dan Fisher was named chairman and chief executive, and John Spriggs was named president and chief operating officer.
Last week, Dan Fisher resigned and John Spriggs was named chief executive.
Midland said it has stopped transfers of stock to Dan Fisher and has hired a lawyer to assist with litigation.
The company said Spriggs has agreed to cancel his 50,000 Preferred Series ''B'' shares.
Midland, a holding company, said it is negotiating with other parties about acquisition and joint venture possibilities.
Midland stock traded at $0.53 a share Tuesday morning, down $0.09.
--------------------------------------------------------------------------------
More Quotes and News: Midland Inc (OTC BB:MIDL - news)
Related News Categories: US Market News
|
