Under the terms of the acquisition agreement, Hubei Longdan is obligated to pay all of All-State’s expenses relating to the transaction, as well as expenses relating to maintenance of the company and its registration as a public company.
The chairman of Hubei Longdan advised the company that it was unable or at least unwilling to fulfill its contractual commitment to pay these expenses.
Based on this breach of contract, All-State said that it will terminate the acquisition agreement and intends to dissolve itself as the acquisition agreement has been terminated.