Nettaxi, Vaultus Call Off the Wedding
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Troubled Internet portal and e-commerce site Nettaxi.com called off merger discussions with Vaultus Inc., a provider of mobile infrastructure software.
Campbell, Calif.-based Nettaxi, its stock trading at 17 cents on the OTC bulletin board, had announced on July 9 that a non-binding letter of intent had been signed with privately held Vaultus.
"Despite our efforts, we were unable to structure a transaction acceptable to both parties," said Robert A. Rositano Jr., chief executive officer of Nettaxi.com. "We both determined that it would be in the best interest of our shareholders to discontinue our ongoing discussions."
Rositano, said the company plans to continue to pursue an acquisition strategy announced last May and is seeking companies with business models that will add value to its shareholders.
That value would seem to be sorely needed; Nettaxi, has never made any money and saw its revenues decline 57 percent for the first quarter of this year, to $1.2 million. The net loss was $2.4 million. The site, sort of a poor man's Yahoo!, offers, news, community, e-mail and shopping.
A deal with New York City-based mobile applications provider Vaultus would likely have transformed Nettaxi's business model into something with more of a solid financial footing.