Canadian affiliate business Enteractive Media to go public in US SPAC deal
Enteractive Media plans to list on Nasdaq through a merger with special purpose acquisition company (SPAC) Parsec Capital Acquisitions.
While financial details of the deal were not disclosed, the board of directors of both companies have approved the transaction, which is expected to close before the end of this year, subject to regulatory and shareholder approval, as well as other closing conditions.The combined business will remain listed on Nasdaq, as Parsec is now, but will operate under the name Enteractive Media Inc with a new ticker symbol.
The board of directors of the combined operation will consist of one director nominated by Parsec Capital and four from Enteractive.
Parsec chairperson and CEO Patricia Trompeter: “We view the transaction valuation as highly attractive to investors. We believe that through our merger, coupled with the management’s background, we have the potential to create significant value for shareholders.”
Parsec chairperson and CEO Patricia Trompeter commented: “We are excited to have Enteractive for this business merger and look forward to consummating this transaction.“We believe that, with the value proposition Enteractive brings to this transaction, it is well-positioned for substantial growth and sustainability.
“We view the transaction valuation as highly attractive to investors. We believe that through our merger, coupled with the management’s background we have the potential to create significant value for shareholders,” she added.
SPACs allow private companies to go public with fewer barriers to entry than an IPO. The method soared in popularity throughout 2020 and 2021 as US gambling became a stock market darling following the 2018 Supreme Court repeal of PASPA.
However, the number of completed transactions has tumbled this year amid recession fears and concerns over the long-term profitability prospects of US sports betting and iGaming companies.
In September, global lottery operator Allwyn abandoned its US SPAC listings plans, while Playtech announced in August that it had decided not go ahead with its plan to publicly list Caliplay.