The proposed Newegg (N) reverse merger plans to offer a stock worth $30 then convert its name to Newegg Commerce under a new Nasdaq symbol ticker to N. The reverse merger book-runner being Maxim Group.
Here are some critical elements of the merger:
• Newegg mergers with Lightning Delaware, a subsidiary of Lianluo Smart Limited
• Lianluo expects to terminate some of its warrants and Class B common stock that will be exercisable to Newegg Commerce stock
• The company's name will be changed to Newegg Commerce, together with its stock ticker.
• What remains constant is the stock trade name Nasdaq.
Reverse merger as a strategy comes with several benefits. As much as it involves more of a reverse takeover, the merger will create a chance for the company to achieve public financing.
The publicity will also be felt both in the ordinary and stock market. Having common shares in the market will create an opportunity for the business to succeed.
How Newegg benefits from the reverse merger
• With the merger, Newegg will operate at a lower cost as compared to initial public offerings.
• It offers a less time-consuming option. To go public, time and money are needed. This is why reverse merger offers the best option.
• With the merger, the company will be able to enjoy flexibility in financing and liquidity. The financial alternatives that come with the merger attract more investors in the process.
• There will be an increased value of the company's liquidity and stock when Newegg reverse merger is actualized. The shares and numbers in the stock market will improve in the process.
• The merger allows for additional compliance within the company. This means sufficient time and energy will continue to run, and the business grows in the process.
What does Newegg do?
Newegg is an online platform that deals with electronics. For a private company, it is essential to create and have a significant online presence. With the availability of a reverse merger with Lianluo Smart Limited, Newegg can now go public.
The publicity that comes with a reverse merger is extensive. This involves shareholders, the stock market, and regulators.
What is a reverse merger?
Many companies wish to go public. It is relevant as it creates the right presence needed for the business. However, it is hectic for a company to go public and hence a decision of a reverse merger.
A reverse merger, also known as a reverse takeover, involves an existing public company acquiring a private company. It aims at helping private companies that seek to go public to bypass the complex processes involved.
The best way for any business to create a public presence is through a reverse merger. This is the strategy that allows the company to reach its potential within a short period.