TORONTO — Privately owned VMedia Inc. announced Wednesday that it has a preliminary, conditional agreement to obtain a listing on the TSX Venture Exchange through a reverse takeover of Phoenix Canada Oil Company Ltd.
According to documents filed with regulators, Phoenix currently gets minimal revenue from oil and gas and primarily funds its operations from income and gains generated by its investments, worth about $9.4 million as of June 30.
VMedia’s main business is providing internet and television services to residential customers, in competition with large communication service providers such as BCE’s Bell and Rogers Communications.
The two companies have signed a letter of intent for a transaction that will result in VMedia gaining control of Phoenix, its assets and its stock listing, through the reverse takeover process.
VMedia co-founder George Burger says a completed deal would give his company more opportunities to raise money through public markets and to use Phoenix’s assets to grow VMedia’s business more aggressively.
Companies in this story: (TSXV:PCO, TSX:BCE, TSX:RCI.B)
The Canadian Press