Gaming operator and media business HeadsUp Entertainment has announced it has identified and been identified by an acquiring company as a target for a reverse triangle merger.
A reverse triangle merger is a type for acquisition where the acquiring entity forms a subsidiary for the purpose of purchasing the target company. Once the deal is completed, the target company will absorb the subsidiary to create a new company, fully owned by the acquiring business.
The business – which currently trades at $0.069 per share, making it a penny stock – says that one of the goals of the merger is to move to a “higher tier exchange”.
HeadsUp is currently an over-the-counter security, meaning that it is not currently listed on a formal exchange, and instead traded through broker-dealer networks.
The markets have not reacted positively to the announcement, with the company’s share price dropping 22.7% since the beginning of trading today.
According the HeadsUp, the business had been in a “mandated quiet period” due to a number of non-disclosure agreements. The operator had entered into multiple corporate finance agreements to consolidate its assets, as well as its previously announced and upcoming transactions.
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