HeadsUp target of reverse triangle merger
![HeadsUp](https://igamingbusiness.com/img-srv/nul1SOyA-DzFE4V5fI7FT763AfiwrsdSkyCztmJZv5U/resizing_type:auto/width:0/height:0/gravity:sm/enlarge:1/ext:webp/strip_metadata:1/quality:90/bG9jYWw6Ly8vaWdhbWluZ2J1c2luZXNzLmNvbS93cC1jb250ZW50L3VwbG9hZHMvMjAyMy8wMy9wZXhlbHMtdC1yb3ljZS14YW4tMTA3ODU5NjAuanBn.webp)
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.