Baden Resources has announced its reverse takeover plans of NorthStar Gaming via a non-binding letter of intent. According to the proposal, Baden will acquire all of NorthStar’s shares in exchange for its own shares, whereas NorthStar shareholders will have the option to convert their existing shares in NorthStar into Baden shares.
The Proposed Deal Is Still Not Locked In
Both Baden and NorthStar noted that the deal is not official yet and there’s no telling whether the proposal will go forward. There are several conditions that Baden would have to adhere to if a deal is made.
First, negotiation of definitive documentation is to be provided by June 27, as well as a regulatory approval receipt. Additionally, Baden will have to join the Toronto Stock Exchange Venture Exchange. To do so, the company will have to first delist from the Canadian Securities Exchange.
Thanks to reverse takeovers, private companies have the ability to become publicly traded companies without the need of going through an initial public offering (IPO).
This news comes days after NorthStar announced that Jennifer Barber was appointed as the new chief financial officer of the company.
NorthStar Gaming Secured Its Canada Market Share With NorthStar Bets
Recently, Ontario officially launched online gambling and NorthStar entered the market via its brand NorthStar Bets. The platform is powered by Playtech, which provided NorthStar with casino and live casino services, as well as its well-known IMS platform.
Michael Moskowitz, the CEO of NorthStar Gaming, stated that NorthStar Bets puts the customers at the top level and acknowledged the fact that Playtech will help the platform provide its players with a unique experience.
Back in February, when NorthStar Bets was officially announced, Moskowitz noted that the platform pays tribute to the company’s local roots. He also added that since the company is a Canadian-owned and operated brand, everyone at NorthStar is proud to provide Ontario players with a unique gaming experience.
Ontario is the “talk of the town” in the online gaming industry recently as many operators are looking to receive a license from the AGCO and start offering their services in the province, which is Canada’s largest.
Other reputable brands that have launched their services in Ontario include DraftKings, FanDuel, Entain, BetMGM, Bet Rivers and SkillOnNet. AGCO has made sure that each of these brands adheres to the industry standards and showed that it will not shy away from penalizing those that do not respect the rules.
That’s exactly what happened to BetMGM and PointsBet. Both of these operators have breached rules concerning advertising and bonusing shortcomings and hence, were fined by the Ontario regulator. BetMGM’s fine was $48,000 and PointsBet’s fine was $30,000.