On July 30, United Royale Holdings Corp (OTCMKTS: URYL) announced that it had executed a letter of intent with TrueNorth Quantum Inc. The LoI is a non-binding agreement and allows URYL to build decentralized apps of institutional-grade for different industries. URYL intends to build these apps for HealthTech, AgTech, MedTech, and FinTech.
What’s the deal?
According to the terms of LoI, the company has offered acquisition of all common and outstanding shares of TrueNorth. These are based upon the 14:1 ratio, which means that for each TrueNorth’s common share, URYL will offer 14 of its common shares. As a result, TrueNorth will become United Royale Holdings Corp’s subsidiary. However, both entities are still in the process of negotiating definitive documents to structure the transaction.
The common shares of United Royale Holdings Corp are quoted and traded currently in the OTCQB market or OTC. The transaction is still subject to shareholders’ approval from TrueNorth. At the same time, there are still a few conditions that require a nod from TrueNorth’s shareholders. The two companies are soon to execute the definitive agreements, after which TrueNorth is expected to release its formal press release. The details regarding additional terms and conditions apart from definitive agreement details shall be stipulated in the press release.
Market Update for the shareholders
After the announcement, URYL’s shares dropped 13.85% to close at $0.56 after trading in the range of $0.53 – $0.75 for the day. The all-time high of URYL is $6.50, while its 52-week low is The difference between the high and low prices over the past 52 weeks $0.53. The company has a market capitalization of $79.51 million. However, on July 30, there were 712 shares trading in the exit hours, higher than its average trading volume of 327.