Logiq Inc. said it has signed a non-binding letter of intent to acquire a privately held operating company in exchange for newly issued Logiq shares for 100% ownership.
The private company will become a wholly-owned subsidiary and is expected to place executives in senior management positions, the company said, adding that the preliminary confidential target valuation is between $225million and $300 million.
“We are excited about the late-stage discussions underway with this privately held operating company to complete a transaction that is win-win for both companies’ shareholders. Our next step is to execute a definitive merger agreement, which we will communicate to our shareholders as soon as we are able to do so, along with further details about the identity and attributes of the target acquisition,” Logiq chief executive officer Brent Suen said in a statement.
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Logiq said the private company in question operates in a popular industry offering above-market secular growth potential and has large institutional shareholders including an American fund management company, a Swiss bank, and an Asian conglomerate.
The transaction would be executed simultaneously with Logiq’s pending Abri de-SPAC deal. Properly structured, post-transaction the combined entity is expected to apply for Nasdaq or NYSE up-listing and complete a significant capital raising, the company said.
The intended transaction is expected to occur not later than March 31, 2023, but could be considerably sooner depending on the timing of a definitive merger agreement and the timing of Logiq’s de-SPAC transaction with Abri SPAC I.
Logiq is a US-based provider of e-commerce and digital customer acquisition solutions by simplifying digital advertising. It provides data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.
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