Sure it is. Read the terms. There were other parties other than Rontan who had to fulfill specific conditions for the deal to close. We had no news even of the opinion letter that was the basis of the deal completing in the first place. And if GDSI violated something in clause "c" below Rontan would have cause. Since the company hasn't given an update other than to say the deal was terminated who knows.
Specific conditions to closing consist of:
a.) Purchaser’s receipt of written limited assurance of an unqualified opinion with respect to Rontan’s audited financial statements for the years ended December 31, 2013 and 2014 (the “Opinion”);
b.) The commitment of sufficient investment by General American Capital Partners LLC, (the “Institutional Investor”), in the Purchaser following receipt of the Opinion;
c.) The accuracy of each Parties’ representations and warranties contained in the SPSA;
d.) The continued operation of Rontan’s business in the ordinary course;
e.) The maintenance of all of Rontan’s bank credit lines in the maximum amount of R$200 million (approximately US$52 million) under the same terms and conditions originally agreed with any such financial institutions, and the maintenance of all other types of funding arrangements. As of the date of the SPSA, Rontan’s financial institution debt consists of not more than R$200 million (approximately US$52 million), trade debt of not more than R$50 million (approximately US$13 million) and other fiscal contingencies of not more that R$95 million (approximately US$24.7 million);
f.) Rontan shall enter into employment or consulting service agreements with key employees and advisors identified by the Purchaser, including Rontan’s Chief Executive Officer; and
g.) The Sellers continued guarantee of Rontan’s bank debt for a period of 90 days following issuance of the Opinion, among other items.
