According to the proposed agreement, Baden would receive all outstanding NorthStar shares in return for Baden shares via a three-cornered merger or another arrangement that would be agreed upon by both parties.

An offering of subscription receipts by NorthStar and a share consolidation by Baden, the ratio of which is still unknown, would need to be finished before such a deal could be finalised.

Before a deal may be finalised, all relevant regulatory clearances must be secured and definitive documentation must be negotiated by June 27, 2022.

In order to fulfil the requirements of a possible takeover, Baden would also have to "obtain conditional approval to list on the TSX Venture Exchange" and delist from the CSE prior to any deal.

There is, however, the customary guarantee that no takeover agreement is guaranteed to be executed on these specified conditions, or at all, given that the letter of intent is nonbinding.

NorthStar is the owner and operator of NorthStar bets, a sportsbook and casino platform with an Ontario location that offers Canadian players a customised experience.

NorthStar has made efforts to secure a number of new alliances and contracts in an attempt to make a name for itself in the quickly expanding gaming industry in Ontario.

NorthStar and Playtech entered into a partnership in June 2022, when the gaming operator implemented Playtech's casino and live casino services, along with its IMS system.