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by Mike Caswell

Baltic I Acquisition Corp., responding to a $1.3-million lawsuit from Alpha Exploration Ltd., denies owing anything to its former qualifying transaction target. Baltic says that it made all reasonable efforts to close a QT with Alpha, but the companies were unable to agree on terms of the deal. In particular, they could not settle on the share price for a $4-million financing and, as a consequence, were unable to prepare the necessary regulatory filings.

The statements from Baltic come in response to a lawsuit that Alpha filed on Feb. 11, 2021, in the Supreme Court of British Columbia. The suit sought damages over an agreement that the companies had entered on Sept. 14, 2020, in which Baltic was to acquire Alpha (owner of a mining property in Eritrea) as its QT. Terms called for Alpha to raise $4-million, with the number of shares issued in the QT being dependent on the share price in Alpha's financing.

The deal failed to close, with both sides now blaming each other for that state of affairs. In its lawsuit, Alpha said that Baltic repeatedly attempted to renegotiate the price of the financing and the number of shares to be issued in the QT. Baltic also failed to deliver documents to the TSX-V that were required to close the deal, such as the information circular. As Alpha saw things, this amounted to breach of contract on the part of Baltic.

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