Team Reciprocity enters letter of intent with Rainy Hollow Ventures

North American organisation Team Reciprocity has entered into a letter of intent with Rainy Hollow Ventures.

Dated February 26th, the letter of intent will see Rainy Hollow Ventures acquire all issued and outstanding securities of Team Reciprocity, resulting in a reverse takeover.

Team Reciprocity Letter of Intent
Image credit: Team Reciprocity

RELATED: Torque Esports enters letter of intent to acquire UMG Media

According to the terms and conditions of the letter of intent, Team Reciprocity and Rainy Hallow Ventures will enter into a definitive agreement. The transaction is far from a done deal at the time of writing.

A reverse takeover is a merger which private companies undertake to become publicly traded without delivering an initial public offering. If the transaction is completed successfully, Team Reciprocity will be listed on the TSX Venture Exchange.

RELATED: New Wave Esports looks to acquire Activate Entertainment

Rainy Hollow Ventures trades on the TSXV, a stock exchange in Canada, which was previously known as the Canadian Venture Exchange. All trading through the exchange is done electronically.

At the time of writing, Team Reciprocity competes in Rocket League, Rainbow Six Siege, Gears of War, Apex Legends, CrossFire, and League of Legends.

Esports Insider says: It’ll be interesting to see how this potential transaction goes, especially if Team Reciprocity does end up being publicly listed. As we all know, letters of intent are certainly not a definitive agreement so it’s too early to get excited about the prospect of the transaction.

ESI New York 2020 - Find out more