NorthStar Gaming targeted in reverse takeover
Vancouver-based minerals company signs letter of intent with Ontario-licensed sportsbook operator
Mineral exploration company Baden Resources has confirmed entry into a non-binding letter of intent to proceed with a reverse takeover of igaming and sportsbook operator NorthStar Gaming.
Under the terms of the proposed deal, Baden would acquire all of the outstanding shares in NorthStar in exchange for shares in Baden.
In the period prior to completion of the proposed transaction, Baden would complete a share consolidation exercise to buy all outstanding shares from shareholders.
While this is taking place, NorthStar would complete its own public offering of shares in the business.
The letter of intent is currently non-binding and is subject to the receipt of a definitive takeover proposal by June 27, as well as regulatory approval and the completion of NorthStar’s offering.
Baden is also required to delist from the Canadian Stock Exchange and then obtain conditional approval to list on the Toronto Stock Exchange’s Venture Exchange index.
NorthStar, which announced its plans to enter the regulated Ontario gaming market in March 2021, began building its executive team soon thereafter.
The rapid buildup culminated with NorthStar recently launching its first B2C offering, NorthStar Bets, a full online casino and sportsbook powered by Kambi.
The NorthStar Bets sportsbook provides an integrated betting experience whereby users can access real-time news, stats, analysis, and scores in-app, while its online casino product features all of the most popular games.
Ontario has rapidly become one of the most hyper-competitive markets in North America, as over 70 operators are currently in the licensing process with the Alcohol and Gaming Commission of Ontario.