Nuvo Energy Grid to be Acquired by Arrowhead Gold

Private Toronto-based company Nuvo Energy Grid is going to be acquired by Arrowhead Gold (CSE:AWH).
According to the press release:

Pursuant to the LOI, Arrowhead will acquire all shares of Nuvo from the Nuvo shareholders in exchange for 13.25 million post consolidated common shares of Arrowhead. Nuvo has sufficient working capital to develop its business plan.
AWH proposes to reduce the number of Common Shares of the Company, as management believes it is in the Company’s best interest to consolidate the shares to increase the Company’s share price and conceivably improve trading liquidity. Many brokerage houses and institutional investors have policies which either, incline to exclude individual brokers from recommending low-priced shares to their customers, or prohibit them from investing in low-priced shares. Upon completion of a proposed 1:6 consolidation, AWH’s current issued capital of 20,940,494 common shares would become 3,490,080 common shares. The proposed consolidation is subject to Shareholder and Regulatory approval.

Click here to read the full press release.