Baden Announces Letter of Intent for Reverse Takeover of NorthStar Gaming
Baden Resources has entered a letter of intent with NorthStar Gaming. The motive is the reverse takeover of Baden by NorthStar Gaming. However, the agreement remains non-binding as it is only in the proposal stage. There are further talks to be held and pending regulatory approval.
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Roles to Play in the Reverse Takeover
The reverse takeover will see Baden purchase all outstanding NorthStar shares using its own. The process will allow NorthStar, a private company, to become a publicly-traded entity without going through an initial public offering. The takeover will be pursuant to a three-cornered amalgamation or other mutually agreed structure.
However, several criteria are required before the deal is finalized. Baden will have to complete a share consolidation at a ratio to be determined. After which NorthStar Gaming would need to make an offering of subscription receipts - "concurrent offering."
Both parties are expected to make their move in the coming days. A definitive agreement is to be negotiated by the 27th of June, 2022.
What Comes Next?
The agreement is not certain yet, but if it does pull through, the next step would be to obtain the necessary regulatory approvals.
One of the final conditions of the proposed transaction requires Baden to delist from the CSE and "obtain conditional approval to list on the TSX Venture Exchange."
Since the letter of intent is merely a proposal with no binding effect on either company, the chances are that the reverse takeover deal, if at all finalized, may not be completed on these specific terms.
NorthStar's Efforts within the Canadian Market
NorthStar Gaming is a Canadian company and owner of the Ontario-based casino and sportsbetting platform NorthStar Bets. NorthStar Bets is designed specifically for the local market. The uniquely tailored user experience comprises real-time sportsbook news, stats, analysis, and live scores.
The company is in pole position to push the convergence of sports media and sports wagering in the region. This endeavor is propelled thanks to strategic partnerships with leading media companies in the region.
NorthStar also provides top online casino games. Earlier this month, they entered into a partnership with global gaming leader Playtech, which will see the supplier provide its IMS platform to NorthStar alongside casino and live casino services. Under the partnership, Playtech will also be providing Poker content to the operator later this year.
With Playtech's "unrivaled multichannel technology," NorthStar is "uniquely positioned to become a leader in the Canadian iGaming market." The company is staking its claim in one of the largest iGaming markets in North America and is focused on ensuring that local players' entertainment dollars stay within the province of Ontario.
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