Predictiv AI Inc (TSX-V:PAI) announced it has entered into a letter of intent to acquire Shift Technologies Canada and HouseStack Holdings, two private firms majority-owned by Suman Pushparajah.
Shift Technologies Canada has created an AI-powered, all-in-one fleet management platform designed to help businesses streamline their operations with advanced features like real-time tracking, predictive maintenance, intelligent route planning, AI inspections, and more.
HouseStack, meanwhile, is a real estate intelligence platform that provides AI-powered solutions for real estate agents.
The LOI outlines the terms of the acquisitions, which will result in Shift and HouseStack becoming wholly-owned subsidiaries of Predictiv AI through a share exchange or similar transaction.
Predictiv AI will acquire both Shift and HouseStack in exchange for 70% of its total and outstanding shares, estimated to be approximately 300 million shares on a pre-consolidation basis.
This deal is expected to be a reverse takeover transaction under TSX Venture Exchange (TSXV) policies, with trading in Predictiv AI shares remaining halted until the transaction is complete.
As part of the transaction, Pushparajah will receive a cash payment of $250,000 and a promissory note with a principal amount of $250,000, with an option to convert the note into shares.
The deal is contingent on several conditions, including regulatory approvals, completion of financing, and satisfactory due diligence.
It is expected that immediately before closing, Predictiv AI will undergo a 1 for 6 share consolidation.