Baden Resources has entered a non-binding letter of intent (LOI) with NorthStar Gaming, in respect of a proposed reverse takeover of the Canadian media business that operates the NorthStar Bets brand.
It was proposed that Baden – which owns Canadian property business Midway property – would acquire all of the outstanding shares of NorthStar in exchange for shares of Baden. Shareholders would be given the option to cnvert their NorthStar shares into Baden shares.
The reverse takeover remains subject to a number of conditions, including the negotiation of definitive documentation by 27 June and the receipt of required regulatory approvals.
Baden would also be required to delist from the Canadian Securities Exchange and join the Toronto Stock Exchange Venture Exchange in order to proceed with the proposed deal.
The two companies noted that there is no assurance that the proposed transaction will go ahead.
NorthStar Gaming is both the owner and operator of NorthStar Bets, an online casino and sportsbook gaming platform that went live in the Canadian province of Ontario earlier this month.
The NorthStar Bets brand went live with support from both Playtech and Kambi. Playtech supplied its IMS platform, casino and live casino technology to the platform, while Kambi provided its sportsbook technology.
The launch followed the opening of Ontario’s regulated online gambling market on 4 April this year. The market’s opening was the culmination of three years of work, following the announcement that the province was ending the lottery’s legal monopoly on online gambling in 2019.