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.