Both Sonic Frontiers Inc. and The Lenbrook Group of Ontario, Canada stated June 5th that they will not be proceeding with a deal announced earlier.

According to Sonic Frontiers' Chis Johnson, "We mutually agreed that it would be in the best interest of both parties not to complete the transaction. Everyone came to realize the deal would not make a perfect fit."

In a statement, Sonic Frontiers said: "Notwithstanding this event, Sonic Frontiers remains focused upon allying itself with a strategic partner, and remains committed to its product and marketing strategies. Sonic Frontiers' home-theater product development initiative [see report on the SGHT website], which commenced several months ago, is still on target to produce products for release this fall."

In addition, Sonic Frontiers will begin appointing independent sales representatives immediately, to augment and support a marketing strategy that includes the expansion of its North American distribution network.

Lenbrook's plan to expand its business interests in the high-end audio/video segment will proceed through its previously formed "Lenbridge" initiative. Future announcements should be expected.