- Predictiv AI (OTC:INOTF) plans a reverse takeover to acquire Shift Technologies Canada and HouseStack Holdings.
- The transaction involves a 1:9 share consolidation and issuing approximately 62.7 million post-consolidation shares.
- A $1.5 million private placement is part of the deal, with shares priced at $0.10 per subscription receipt.
Predictiv AI Inc. (INOTF, Financial) has announced a strategic move to acquire Shift Technologies Canada and HouseStack Holdings through a reverse takeover transaction. The amended letter of intent outlines the acquisition process, which will involve a 1:9 share consolidation, resulting in the issuance of approximately 62.7 million post-consolidation shares. This exchange will give Shift and HouseStack shareholders a significant 78.4% ownership in Predictiv AI.
An integral part of the transaction is a $1.5 million private placement. The placement will issue subscription receipts at a price of $0.10 each, with each receipt converting into one share and one warrant, exercisable at $0.15. The company also agreed to make a $500,000 payment to Suman Pushparajah, divided between cash and a convertible note.
Alongside the proposed acquisition, Predictiv AI plans to delist from the TSX Venture's NEX board and seek a new listing on the Canadian Securities Exchange (CSE). The management team for the resulting issuer will be led by Suman Pushparajah as CEO, Khurram Qureshi as CFO, and Sana Srithas as COO, with a board that also includes Etienne Grima and Rob Barlow.
The completion of the transaction is contingent upon regulatory approvals, the completion of the financing, and other customary closing conditions. The move is seen as a strategic effort by Predictiv AI to expand its technology portfolio and enhance shareholder value through a robust management and operational framework.
