Reverse Triangle Merger Target Strategy: A HeadsUp Approach

A reverse triangle merger is a type of acquisition strategy where the acquiring entity forms a subsidiary to purchase the target company. After the completion of the deal, the target company will incorporate the subsidiary to establish a new company owned entirely by the acquiring business. Currently, the acquiring business trades at a price of $0.069 per share, classifying it as a penny stock. One of the objectives of the merger is to transition to a higher tier exchange. Presently, HeadsUp is an over-the-counter security, not listed on a formal exchange and traded through broker-dealer networks. However, the announcement did not receive a positive response from the market, resulting in a 22.7% drop in the company’s share price since the start of trading. During a period of non-disclosure agreements, HeadsUp was unable to disclose information. The company had entered into various corporate finance agreements to consolidate its assets, along with previously announced and upcoming transactions.