Revolution Bars Group PLC (AIM:RBG) has rejected a takeover proposal from Nightcap PLC (AIM:NGHT) as it said a transaction is "incapable of being delivered".
While Revolution's existing directors want to raise £12.5 million to carry out a restructuring plan, legal advisers have suggested the plans suggested by Nightcap as part of its offer would throw a spanner in the works as funding would not be in place in time for the planned relaunch.
Nightcap's due diligence would also add more time, which Revolutuon says would add "material delivery risk" and possible require additional funding, further complicating the feasibility of the proposal.
Earlier this month, Revolution said its hunt for a potential rescue deal had yielded 32 potential buyers, but management believe their proposed £12.5 million offer and restructuring plans are the only viable way forward.
"The board notes that, should the restructuring plan proceed and be sanctioned by the court, it would preserve value for the company's current shareholders by comparison to the offers received from the M&A process which provided no equity value, whilst acknowledging the dilutive effect of the Fundraising for those Shareholders who have not participated in its pro rata to their current shareholdings," Revolution said.