Mayne Pharma Group Ltd (ASX: MYX) has formally terminated its $672 million scheme of arrangement with US-based Cosette Pharmaceuticals, saying it is not obligated to pay any break fee after the deal was effectively scuttled by Treasurer Jim Chalmers last month.
The company said it has now issued Cosette with a notice terminating the scheme implementation deed (SID) entered into on February 20.
Mayne alleges Cosette “materially” breached the deed through “wilful and intentional” actions that resulted in the Foreign Investment Review Board (FIRB) not approving the transaction, meaning a condition of the deed was not satisfied.
Concerns that Cosette could close Mayne’s Adelaide manufacturing plant were central to Dr Chalmers’ decision to block the deal.
Mayne said it will continue to consider all options available in connection with Cosette’s alleged material breaches and has described as “invalid” a termination notice served by Cosette following the FIRB decision.
“While this brings the SID to an end, Mayne Pharma continues to reserve all of its rights against Cosette, and its owners and controllers Hamilton Lane and Avista, in connection with their conduct relating to the SID,” the company said.
Shares in small-cap Mayne Pharma (ASX: MYX) were last quoted at $3.18 down $1.24%.