Fortune Industries and Ide amend merger agreement
Amendments have been made to the merger agreement between Fortune Industries and Ide.
Fortune Industries has restructured its merger agreement with Ide Management Group and amended it, although it still intends to go ahead with the tie-up.
Contract negotiations have resulted in the amended agreement stipulating that Ide combines with a subsidiary of Fortune Industries to become a wholly-owned subsidiary of the firm, although the organisation with which Ide will merge has yet to be set up.
Sole member of Ide Mark Ide will receive a significant majority of Fortune Industries' shares in exchange for full ownership of Ide.
Furthermore, Ide is to pay Fortune Industries $300,000 as part of the deal, which has already been placed into an independent third party bank's escrow account.
Chief executive officer of Fortune Industries Tena Mayberry said: "This amended agreement provides current company shareholders the opportunity to continue to own shares in a publicly-traded entity, which we believe should enhance their liquidity."
Ides manages and owns assisted living and nursing facilities, owning 20 centres throughout Illinois, Wisconsin, Indiana and Iowa.
Posted by David Gleck
Source: Fortune Industries press release, September 20th