MindArrow Drops Plan to Buy Irish Company

MindArrow Systems Inc., which recently had trading in its stock halted by the Nasdaq stock market for alleged irregularities, said Wednesday it has scrapped plans to buy a private Irish communications company.

MindArrow, an Aliso Viejo Internet software firm, and Twelve Horses Ltd. agreed to shelve a deal in which MindArrow was to acquire the Irish firm for 29% of its outstanding common stock.

Federal authorities are investigating how 1.1 million unauthorized shares of MindArrow stock may have been sold to the public. The company said RTT Transfers Inc., its former transfer agent, issued unauthorized shares between May 1999 and March 2000. The company’s stock, which has lost nearly 85% of its value in the last year, last traded at $4.50 per share.