Vsurance, a provider of pet health insurance, has cancelled its financing agreement with Standart Capital, and its affiliated European financial institutions, to provide up to $10 million in debt financing.

The board of directors of Vsurance have said that the debt financing agreement is not in the best interest of the company or its shareholders at this time.

Russell Smith, CEO of Vsurance, stated: On November 5, the company announced that it entered into a debt financing agreement with Standart Capital for up to $10 million. After further due diligence, and in light of the unusually heavy trading volume of the company’s stock subsequent to the financing announcement, the board concluded that there may be a correlation between the announcement of the financing agreement, the subsequent trading volume, and sharp decline of the share price.

In an abundance of caution, the board has terminated the debt financing agreement with Standart Capital.