City View Green Holdings (CSE: CVGR) (OTC Pink: CVGRF) recently warned investors it was considering a pivot out of cannabis and becoming an investment issuer. Now it’s making that official.

The company has proposed to spin out its wholly owned subsidiary, 2590672 Ontario Inc. Following the spin-out transaction, the company said it would remain a reporting issuer to complete a reverse take-over transaction with a business that has yet to be identified.

City View also said that the spin-out would allow shareholders to realize the expected growth and returns from the cannabis sector through direct ownership in the “SubCo” – or the spin-out property – and that it was expected to file with the Canadian Securities Exchange to list the shares there. That exchange ratio has yet to be determined.

As part of the proposed plan, City View told the market that it has entered into an agreement of principle with an arm’s length party referred to as the “Target.” City View will buy an ownership interest in said Target in exchange for the issuance of shares in the capital of City View.

While it didn’t name the company, City View did say that the Target is a technology company with a primary focus on assisting online creators and influencers to monetize their YouTube, Twitch and X livestreams by matching the individual creators and influencers with brands.

“The creators and influencers will use the proprietary live broadcast software to integrate the ads into their livestreams. The Target, using AI, will be able to track all interactions by the viewers with the ads, bill the advertisers accordingly and remit payment to the creators and influencers,” the company said in its statement.

Despite the lengthy description, City View acknowledged it is still doing its due diligence on the company and has signed no definitive agreement.

The proposed plan is also dependent upon a shareholder vote approving the move.