Vision Marine Technologies (VMAR) entered into a non-binding letter of intent last week with a privately held operating company regarding a proposed business combination, the company said Monday.

The identity of the operating company and financial terms were not disclosed.

The proposed transaction is expected to be a reverse takeover of Vision Marine that would result in a change of control of the company, the company said.

Current Vision Marine securityholders are expected to retain around 2.9% of the combined company at closing, the company said.

The two companies plan to announce a deal by Oct. 15 and complete it by Dec. 31, the company said.

The combined company will continue to be listed on Nasdaq, subject to approvals, the company said.