- Rainy Hollow Ventures (RHV.P) has entered into a letter of intent, agreeing to a reverse-takeover by Sustainable Produce Urban Delivery
- SPUD is an online shopping platform which allows customers to order and schedule home delivery of groceries and other goods
- As a capital pool company, Rainy Hollow must complete a qualifying transaction in order to gain regular TSXV listing
- Subject to a definitive agreement and SPUD’s brokered financing, the companies will complete the qualifying transaction
- Rainy Hollow Ventures (RHV.P) is currently under a trading halt, and will remain so until the transaction is complete
Rainy Hollow Ventures (RHV-P) has entered into a letter of intent, agreeing to a reverse-takeover by Sustainable Produce Urban Delivery.
SPUD is an online shopping platform, which allows customers to order and schedule home delivery of groceries and other goods. Led by CEO Peter von Stolk, the business is focused on organic and natural foods.
Rainy Hollow Ventures is a capital pool company, which must complete a qualifying transaction before it can gain regular listing on the TSXV. If completed, this reverse-takeover will achieve that goal and introduce SPUD to the Venture Exchange.
The two companies must first negotiate and enter into a definitive agreement for the transaction before it can go forward.
SPUD intends to complete a brokered financing of unsecured convertible debentures around October 10, 2020. This is for the purpose of raising a principal amount between C$5 million and $10 million, which will be converted into SPUD shares.
SPUD also intends to complete a separate brokered financing, for aggregate gross proceeds of at least $25 million. This will consist of SPUD shares or subscription receipts, at a price to be determined in the market context.
Prior to the transaction, Rainy Hollow will complete a share consolidation. This will be on the basis of one new Rainy Hollow common share for seven old Rainy Hollow common shares outstanding.
Subject to the definitive agreement and SPUD’s financing, Rainy Hollow will acquire all issued and outstanding securities in SPUD. The resulting issuer or entity will carry on under the name Sustainable Produce Urban Delivery.
Rainy Hollow Ventures (RHV-P) is currently under a trading halt, and will remain so until the transaction is complete.