(Reuters) - 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.
Reporting by Rishika Chatterjee in Bengaluru, Editing by Sherry Jacob-Phillips