Privately-owned US fruit and vegetable company Urban Barns Food is to become a wholly-owned subsidiary of HL Ventures.

HL Ventures has entered into a binding letter of intent governing a share exchange agreement with the company.

The agreement obligates both companies to complete a share exchange transaction, subject to certain conditions and the completion of due diligence.

HL Ventures said that it has already started the process for the share exchange by changing its name with the Nevada secretary of state from HL Ventures to Urban Barns Foods.

The company will be filing for approval for the name change and a new ticker symbol from FINRA shortly.

Jerry Fitzpatrick, president of Urban Barns, said: "We are excited about completing our RTO with HL Ventures. We believe in Urban Barns and we believe that the investing public will see the great promise of our business."

Deniz Hassan, president of HL Ventures, said it was pleased to have found such a "promising merger" for the company and its shareholders.

"We were very impressed with Urban Barns' business plan and the vision of its management. Providing fresh nutritious, organic produce for urban populations is a socially responsible and ingenious business proposition which we are very excited about."

HL Ventures engages in the acquisition, exploration and development of natural resource properties.