Glen Allen, VA-based Dynex Capital Inc. entered into the definitive agreement with California Investment, a San Diego-based private real estate firm, to buy a Virginia-based mortgage lender for $90 million in cash on Nov. 7. But Friday, Dynex announced it had exercised its right to bail out of the agreement.
In its brief announcement released Friday, Dynex Capital says only that it ended its agreement with California Investment "for failure to comply with certain terms of the agreement."
"In addition, the company has made claims under the escrow agreement between the parties for the escrow amount," according to the statement.
California Investment Fund had agreed to deposit 572,178 shares of Dynex common stock that it owns into an escrow account and had agreed to deposit an additional $1 million into escrow within 30 days. It was unclear fromDynex's statement how much it expects to recover from the escrow. Company officials could not be reached for comment.
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