Eshbal Functional Foods Cooperative Ltd. entered into a letter of intent to acquire Hakken Capital Corp. (TSXV:HAKK.P) in a reverse merger transaction.
Upon closing of the Proposed Transaction, the directors and officers of Hakken will resign and the board of directors of Hakken will be reconstituted to consist of seven directors. Five directors will be nominated by the selling members of ESHBAL, two of which will be independent directors who are yet to be determined, and two directors will be nominated by Hakken, one of which will be an independent director. Directors and officers of Hakken will include Yuval Levy ? Director; Tamir Dagan ? Director; David Bar-Meir ? Director; David Eto ? Director; Tomer Bar-Meir ? Chief Executive Officer; and Danit Kochva ? Chief Financial Officer.
Completion of the Proposed Transaction is subject to a number of conditions including, but not limited to, TSX Venture Exchange acceptance, receipt of all required corporate, shareholder, unit holder and third-party approvals, ESHBAL obtaining from the Israel Tax Authority a pre-ruling to treat the Proposed Transaction as a tax deferred merger, the completion of the private placement, the delivery of a sponsor report and independent valuation satisfactory to the TSX Venture Exchange (if required by the Exchange) and other conditions customary for a transaction of in the nature of the Proposed Transaction. Haywood Securities Inc. is acting as advisor to Hakken. Hakken will pay a corporate advisory fee to Haywood Securities Inc. in the amount of CAD 250,000 which shall be paid by the issuance of Finder?s Shares pursuant to an advisory agreement between Hakken and Haywood.