Fieldex Exploration Inc said on Monday it will acquire Copeland Biosciences through a reverse takeover of the Canadian mineral exploration firm by Copeland and its shareholders, which will involve a three-cornered amalgamation among Fieldex, 1209908 B.C. Ltd (Subco) and Copeland.
A reverse takeover (RTO) is a type of merger that private companies engage in to become publicly traded without resorting to an initial public offering (IPO). Initially, the private company buys enough shares to control a publicly traded company.
The proposed transaction will result in Copeland Biosciences combining its corporate existence with Subco. The new entity will be a wholly owned subsidiary of Fieldex, the Canadian company said.
Copeland Biosciences, a cannabis pharma company, will also undertake private placement of subscription receipts at $0.30 for aggregate gross proceeds of a minimum $2 million and maximum of $6 million, Fieldex added.
Upon the deal closure, Fieldex will be listed on the Canadian Securities Exchange and will be renamed Copeland Biosciences Corp, the mineral exploration firm said.
Source: Reuters.com