How did MBND blow this one? It would seem a good thing that they did not pay 3.20 for the entire company that is now valued at 50% of such value. They bought two subsidiaries and reduced the escrow to just $250K if they walk away now from the original $2MM.
I still think a renegotiated price is possible, but it would not surprise me if both companies shares went higher once the status of this deal is announced tomorrow. MBND has an overhang that it might still pay 3.20 and need to finance it. Either buy WPCS for a lower price or move forward elsewhere. Company has plenty of cash flow and ebitda.
They diluted shareholders with the secondary last year in order to help finance WPCS. So now they have simply diluted the shareholders and have nothing to show for it. That is why they have blown this IMO.