Blue Star Capital says that investee company The Drop Esports Inc is planning to reverse into a TSX Venture Exchange shell which intends to move to the Canadian Stock Exchange.
Fibresources Corporation, which has the quotation, will issue shares (after a consolidation) to buy the Canadian esports organiser The Drops, whose shareholders will receive one new share for every two they currently own. This will double the number of Fibresources shares in issue to around 90 million.
Cash will then be raised for working capital. Prior to that Blue Star could have a 9.3% stake in Fibresources.
Blue Star previously announced six esports investments. It invested C$250,000 in The Drops.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.