A gaming and media enterprise, HeadsUp Entertainment, has been targeted for a reverse triangular merger by a procurement firm.
This type of merger entails the acquiring company forming a subsidiary to take over the targeted company. After the deal is finalized, the targeted company absorbs the subsidiary, culminating in a new company fully owned by the acquiring entity.
HeadsUp, currently trading at $0.069 per share, is considered a “penny stock.” The company has indicated that one of the merger’s objectives is to gain access to a higher-tier exchange.
HeadsUp is currently an over-the-counter security, meaning it’s not listed on a formal exchange and is traded through a network of brokers.
The market has responded negatively to the news, with the company’s share price declining 22.7% since trading commenced today.
HeadsUp has been in a “quiet period” due to multiple confidentiality agreements. The company has signed several corporate financing agreements to consolidate its assets, including previously announced and upcoming transactions.
