Funding problems have scuppered Pinnacle Technology`s talks with a potential black economic empowerment (BEE) equity partner.
The group announced in January that it was in advanced talks with Rokunda Investment Holdings, a BEE entity that intended to acquire a 26% shareholding in Pinnacle.
The talks centred on the issue of Pinnacle shares to Rokunda for cash.
In March Pinnacle said the talks were still under way.
However, the company has told its shareholders that "the BEE entity has been unable to secure the funding to facilitate its proposed investment in the company, on sufficiently favourable terms, and the discussions have unfortunately been terminated as a result".
Pinnacle, an IT products and services supplier, says it remains committed to the principle of BEE and is in preliminary talks with other BEE entities.
"Shareholders will be timeously advised as soon as any of these discussions reach an advanced stage."
The Pinnacle share price was unchanged at 22c on the JSE this morning.
Related stories:
Pinnacle in BEE talks
Share
