Sendero Resources Corp. entered in a binding letter of intent to acquire Intertidal Capital Corp. (TSXV:TIDE.P) for CAD 6.5 million in a reverse merger transaction.

Sendero Resources Corp. entered in a binding letter of intent to acquire Intertidal Capital Corp. (TSXV:TIDE.P) for CAD 6.5 million in a reverse merger transaction on May 18, 2022.

Pursuant to the transaction, the Intertidal Capital will issue common shares in the capital of Intertidal to the holders of common shares in the capital of Sendero on the basis of one Intertidal Share for one Sendero Share, which is expected to result in the issuance of 25.66 million Intertidal Shares. Upon completion of the transaction, it is expected that all the directors and officers of Intertidal will resign and be replaced by nominees of Sendero. The transaction is subject to a number of terms and conditions, including, but not limited to, the parties entering into a definitive agreement with respect to the transaction on or before July 2, 2022, the completion of satisfactory due diligence investigations, the completion of a private placement by Intertidal and Sendero of subscription receipts for gross proceeds of a minimum of CAD 5 million, and the approval of the TSX-V and other applicable regulatory authorities.

Sendero intends to use the net proceeds of the Private Placement to fund the transaction. Upon completion of the Transaction, the Company intends to change its name to “Sendero Resources Inc.” or such other name as Sendero may determine, and the parties expect that the TSX-V will assign a new trading symbol for the Resulting Issuer.