Digiplus deal NOT - latest from NY

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    New Tel Provides An Update On DigiPlus Acquisition

    NEW YORK -(Dow Jones)- New Tel Ltd. (NWLL) said its planned acquisition of Australia's DigiPlus Investments Ltd. fell through because the companies didn't satisfy some required conditions of the deal.
    In a press release Friday, Australia's telecommunication company New Tel said it will receive a $4 million refund covering a deposit it originally made to DigiPlus for the acquisition.

    The news follows last month's announcement that New Tel didn't complete its year financial statements because of the planned DigiPlus acquisition. The terminated deal, which originally was announced in mid-March, was expected to materially affect New Tel's cash flow and double its revenue to $250 million.

    At the time of that announcement, New Tel asked the Nasdaq SmallCap Market to halt trading shares of the company until the DigiPlus acquisition was completed. The company's shares remain halted with a last trade at 29 cents.

    New Tel is continuing discussions with the DigiPlus sellers and other parties regarding their perspective businesses, and the company will announce further details to the market when new arrangements have been confirmed.

 
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