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HeadsUp target of reverse triangle merger

| By Zak Thomas-Akoo
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 to 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.

Read full story on iGB North America

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