R8 Capital Investments is set to acquire Redwood Financial Partners, the parent company of Redwood Bank, a prominent specialist business lender, through a reverse takeover. The transaction is valued at over £50 million ($61 million) in shares.
Under the terms of the deal, the cash shell, previously known as Mode Global Holdings, will finance the acquisition entirely through the issuance of R8 shares. However, the final amount is yet to be determined and will be subject to a comprehensive due diligence process. Additionally, R8 intends to conduct a contemporaneous fundraising campaign to contribute to Redwood Bank’s tier 1 regulatory capital.
With the announcement of the acquisition, R8 Capital Investments has requested the suspension of its shares until the publication of a prospectus or an official statement confirming the termination of the transaction.
It is important to note that the completion of this deal is contingent upon the successful completion of due diligence and obtaining regulatory approvals. Therefore, there is no guarantee that the acquisition will ultimately take place.