US FEC and esports chain GameWorks has entered into an agreement with GTA Financecorp to complete a reverse merger transaction.
Such a move is an option for a company that has an interest in going public, but instead of making an initial public offering, the company will merge with another firm that has already gone public.
"GameWorks and GTA intend to apply to list the common shares of the resulting issuer on the Canadian Securities Exchange, giving us access to capital to execute our growth strategy and invigorate the company," said GameWorks chairman and CEO Philip Kaplan.
"This milestone in the history of GameWorks provides us a platform to continue to fortify our leadership role in the growing esports and entertainment sector. As a leader in esports nationally, this will allow us to continue to emphasise our esports offering and bring players and spectators the experience they demand in settings that cater to their distinct gaming needs. The company intends to continue expanding its concept in key strategic regions throughout the US as well as select international markets, including Canada."
The closing of the merger is subject to a number of conditions, including the completion of a US$7.5M financing by no later than January 31, 2019, and CSE approval of the transaction.
GameWorks was founded as a joint venture between Sega, Universal Studios and DreamWorks, with locations throughout the US, but is now owned by ExWorks Capital.
