Denver company states there was a breach of agreements.
Glowpoint Inc., a publicly traded company based in Denver, said Monday it agreed with Jacksonville-based SharedLabs Inc. to terminate their planned merger.
SharedLabs, which had previously filed plans for an initial public offering, canceled the stock sale in November when it agreed to merge with Glowpoint. The agreement would have left SharedLabs as the surviving public company.
Glowpoint said in a news release it sent SharedLabs a "Notice of Breach and Reservation of Rights" on April 12 saying, "SharedLabs was in breach of certain of its agreements and certain of its representations and warranties under the Merger Agreement and that, as a result, the Company was entitled to terminate the Merger Agreement on or before May 12, 2019."
Also on April 12, SharedLabs sent a letter to the Florida Department of Economic Opportunity saying it was withdrawing from a $107,000 Qualified Target Industry Tax Refund that was approved for the addition of 107 new jobs at its Downtown Jacksonville headquarters.
Glowpoint also said Monday, "SharedLabs has agreed to work with the Company in good faith to reach a resolution with respect to the Company’s rights in connection with the termination of the Merger Agreement, including the payment by SharedLabs of fees and expenses in connection therewith. "