Following its decision to sell CounterpartyLink in April, Cicada has recently issued a letter of intent to list on the Toronto Stock Exchange (TSX) via a reverse merger with venture capital firm JJR II Acquisition.
“At this time, it is still a letter of intent – in other words, there has not been a completed transaction in this regard,” explains Hubert Holmes, executive vice president of Cicada. “Rather, it is one of several options Cicada is considering as we look to rapidly accelerate our business plans for new Cicada product and service offerings, most particularly MarketPrizm.”
Holmes continues: “Our strategy in terms of the various capital markets options we are looking at, is to maximise the new investor interest we are receiving in Cicada, and to leverage the best of those additional funding possibilities to hyper-drive our business plan for the European markets.”
JJR II is currently listed on the TSX and is an affiliate firm of JJR Capital Corp. The total transaction, if it goes through and following the completion of the qualifying transaction, has been valued at approximately US$55 million.
It has been agreed that Cicada will nominate the five board members of the newly restructured firm if the transaction is approved. The principal shareholders of Cicada are Andover Capital SPC, Segregated Portfolio ACL 10,008, Hubert Holmes and Mike Hensley, who collectively will hold more than 90% of the shares of Cicada and have agreed to enter into a support agreement to vote their shares in favour of the transaction or tender their shares into an offer by JJR II.