Low6 has confirmed that it will become a wholly owned subsidiary of 13197735 BC (735 BC), a British Columbia corporation that is a reporting issuer under the securities laws of Alberta and British Columbia.
A statement issued by the sports technology firm clarified that the two companies have entered into a binding letter agreement to “combine their business operations resulting in a reverse takeover”.
Pursuant to the terms of the agreement, the duo will enter into a business combination “by way of an arrangement, amalgamation, share exchange or other similar structure”.
The transaction, which is expected to be executed in the short term, is subject to tax, corporate, and securities law advice.
Once a definitive agreement between both parties is executed, Low6 and 735 BC intend to apply to list the common shares of the resulting issuer on the TSX Venture Exchange.
Last week, Low6 outlined its intentions to publicly list in the US via an initial public offering (IPO), after completing a $5m funding round.
The company had planned to conduct its IPO later this year, something which has been a long term ambition for Low6.