NewMarket Tech, Action Products End Deal
Monday November 27, 11:56 am ET
NewMarket Technology, Action Products International End Merger Plans
DALLAS (AP) -- NewMarket Technology Inc., an integrator and maintenance services provider, confirmed Monday it is no longer in merger talks with toy maker Action Products International Inc.
Last week, Orlando, Fla.-based Action Products said the companies terminated formal negotiations after legal and financial teams agreed they weren't able to make progress on final terms.
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Philip Verges, chief executive and chairman of NewMarket Technology, on Monday sent shareholders a letter that said an accelerated listing on the Nasdaq was a primary objective of the planned merger, but "the operational opportunity did not prove compelling enough in the final analysis."
Verges said NewMarket is on track to achieve $70 million in annual revenue and has outgrown the over-the-counter Bulletin Board exchange on which its stock is currently listed.
"Given NewMarket's current operational expanse, management can not effectively pursue both aggressive operational growth and building shareholder value quickly," Verges wrote. "Accordingly, management has made the decision to engage an investment banking firm to manage share price alignment strategies through an upgraded listing and an organized communication campaign with institutional investors."
Shares of Action Products dipped 8 cents, or 4.7 percent, to $1.61 in morning trading, while NewMarket Technology added a penny, or 3.9 percent, to 27 cents.
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