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All Posts Term: Reverse Merger
7 post(s) found

3D Printer Manufacturer Zortrax To Go Public In Reverse Merger

3D Printer Manufacturer Zortrax To Go Public In Reverse Merger

Zortrax

Zortrax, the Polish 3D printer manufacturer, has signed a reverse merger deal with Corelens, the optical medical firm, that will enable it to be a publicly-listed company on the Polish NewConnect stock exchange.

The deal means that all of Zortrax's assets will be transferred to Corelens which will issue 97 percent of its shares to Zortrax shareholders in exchange. This will enable Zortrax to expand on the medical applications of its systems and after the merger it will have a value of $39.6 million.

Zortrax Product Lines

Based in Olsztyn, Poland, the company specializes in manufacturing desktop 3D printers as well as offering a variety of post-processing, printing materials and software solutions to its customers. The company markets its products through a network of 130 partners in 90 countries to service industries ranging from automotive design and architecture to the textiles sector.

An example of a recent application of the firm's 3D printing technology is the German company Lightning Cosplay which used Zortrax's M200 printer systems to fabricate video-game inspired cosplay outfits. The company has also developed a range of bio-compatible resins (under the Inkspire label) that is aimed at the growing popularity of medical desktop 3D printing.

Zortrax Reverse Merger

In order to capitalize on the growth in demand for these type of applications (and to enhance the medical compatibility of its printers) the company has opted to merge with the clinical firm Corelens as a good strategic fit. As an added benefit it could also raise a significant funding by floating its shares on the stock exchange, depending on the company's future financial results and the confidence of its investors.

The reverse merger will result in Corelens issuing Zortrax's investors with approximately 111,937,500 shares which represent the equivalent of 97 percent of the company. Fifteen new Corelens shares will be issued in exchange for each Zortrax share to the company's existing shareholders so that they retain the same percentage of ownership in the new company that they had before.

Newegg (N) Reverse Merger

Newegg (N) Reverse Merger

NewEgg

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.

Faraday Futures Announces Public Listing

Faraday Futures Announces Public Listing

FaradayFutures

Faraday Futures is the latest startup to announce a public listing through a reverse merger using a special purpose acquisition company (SPAC) in what is fast becoming a trend for companies in the electrical vehicle space. SPACs have become popular during the pandemic to consolidate funds raised by other financial entities and as a faster means to listing while facing fewer regulatory hurdles.

CEO Carsten Breitfeld

The company's chief executive, Carsten Breitfeld, announced the reverse merger and SPAC vehicle and while he said an announcement would be made 'quite soon' there is as yet no definitive date set for the company going public. Breitfeld, who was previously the co-founder of electric vehicle startup Byton, also declined to offer any details about who Faraday Futures will use to complete the deal.

FF91 Luxury Electric SUV

Faraday Futures is based in California and was founded in 2014 as an electric car maker but has yet to produce a commercially available vehicle. It has announced that its first vehicle that will go into production will be the FF91 - a luxury electric SUV that was presented at CES 2020. Its eye-catching design was apparently met with considerable enthusiasm by attendees. The company aims to raise around $850 million to put this model into production by the end of the first quarter of 2020. This is in addition to the $225 million of bridge financing provided by a group of investors led by Birch Lake Associates.

Faraday Futures Bankruptcy

Investors may be wary of the company's somewhat checkered past; Faraday Future's former CEO and founder, YT Jia, entered Chapter 11 bankruptcy and was forced to sell off his stake in the company to pay debts and to secure the company's future. He is still involved in the company, however, and will be the Chief Product and User Ecosystem Officer. The pandemic has also impacted the company though a $9 million forgivable loan form the US Small Business Administration measure helped it stave off closure and allowed it to keep its employees.

The restructuring of the company is now complete and having Jia's personal financial problems untangled from it may make it a more attractive target for investors in the EV space. Breitfeld also emphasized that the startup's history makes it vital that trust is restored in the brand and that it shows stability as it moves forwards.

ChargePoint Goes Public In Reverse Merger

ChargePoint Goes Public In Reverse Merger

ChargePoint

ChargePoint, an electric vehicle recharging network, has announced a public listing through a reverse merger with Switchback Energy Acquisition Corp. Switchback, based in Dallas, was created in 2019 specifically for the transaction and raised $300 million in its IPO. ChargePoint, based in Campbell, California, is valued at $2.4 billion with the acquisition. The deal includes a $225 million private investment in public equity placement valued at $10 per share according to a company announcement.

Who is ChargePoint

ChargePoint is the largest electric vehicle charging provider in the world and was previously backed by BMW, Daimler and Siemens as well as Baillie Gifford, a Scottish investment trust company. The company intends to use the funds raised to expand in Europe and North America aiming to ride the increasing uptake of electric vehicles by consumers. In 2019 it lost $133 million on revenue of $147 million as a result of continuing investment, according to the company.

Demand for Electric Car Charging Stations

The potential market for electric vehicles is massive and demand for electric cars have risen across the globe even as demand for traditionally powered cars has fallen. The availability of charging stations will become crucial as uptake increases and the company was established in 2007 to take advantage of this. According to the company, they have built a robust, scalable platform to meet the coming demand for charging stations around the world. The company claims it has installed about 100,000 charging stations across Europe and the US and has captured over 70% of the US market.

ChargePoint Reverse Merger

Some have criticized the merger because of its lack of transparency and the presence of investors who are looking for a quick return and unlikely to stay the course in the long term. However the chief executive, Pasquale Romano, has stated that the company is a legitimate business pointing to the fact that they have been in existence for over a decade, have a well-defined market and potential for growth worldwide as electric vehicle uptake accelerates. He went on to say that the timing for becoming a public entity is right given the increased financing that will be required to roll out their stations and that this was the only consideration when going through with the transaction.

QuantumScape To Go Public In Reverse Merger

QuantumScape To Go Public In Reverse Merger

quantumscape

QuantumScape is a US-based battery developer that is backed by car manufacturer Volkswagen. The company has announced that it has agreed to a reverse merger financing deal with Kensington Capital Acquisition Corporation, a special purpose acquisition company as well as a $500m private investment placement.

The QuantumScape reverse merger will result in a new company that will list on the New York Stock Exchange with a valuation of approximately $3.3bn after the transaction is completed. The deal is expected to close by the end of 2020 and the new company will trade on the New York Stock Exchange under the ticker symbol QS.

QuantumScape was founded in 2010 to develop solid-state lithium batteries that are used mainly in electric vehicles. Unlike current lithium-ion batteries, that use liquid or gel to create a charge, solid-state batteries use a solid material instead. The design replaces the traditional graphite/silicon anode with a lithium-metal anode which is said to improve recharge time providing up to 80% capacity in under15 minutes. In addition, the new battery has a much higher energy density that exceeds 400 watt-hours per kilogram compared to the 250 watt-hours per kilogram that the best current lithium-ion batteries can deliver. While this new battery technology offers a potentially higher energy density and some safety advantages they have faced challenges in reaching the market, particularly with regard to their high cost and questions about their durability.

The company is expected to use the proceeds from the reverse merger to continue product development of their battery technology and to undertake validation of the technology through a production phase in which the batteries will be included in Volkswagen's range of electric vehicles. Volkswagen had previously formed a joint venture with QuantumScape to mass produce their batteries and they have been in collaboration since 2012. Volkswagen has also committed to investing an additional $200m in the company which adds to its 2018 investment of over $100m.

Recent and Upcoming Reverse Mergers

Recent and Upcoming Reverse Mergers

Vroomlogo

What are reverse mergers? A reverse merger also referred to as a reverse IPO, is where a private company merges with a publicly traded company with the end result of the private company becoming a public company. This saves the private company the very complicated and lengthy process of becoming a public company.

Vroom Reverse Merger

Reverse mergers have been on the rise recently during the COVID-19 pandemic. One of the most recent mergers is of Vroom Inc whose share price has since gone up. This can be attributed to the shift to online used car buying as opposed to the traditional way of buying used vehicles. The current rise in online shopping accelerated by the pandemic could serve as a big boost, not only to Vroom Inc but also other companies such as Velodyne Lidar and Shift Technologies.

Velodyne Lidar Reverse Merger

Velodyne Lidar Inc, a company that specializes in the manufacture of sensors for autonomous cars is set to complete a reverse merger with Graf Industrial Corp. This will in effect place Velodyne Lidar Inc on the New York Stock Exchange giving the company a big opportunity for growth in the autonomous vehicle industry. Besides the strategic backing by investors such as Nikon, Baidu and Ford Motor Co, the company's valuation combined with Graf Industrial Corp will not only create huge opportunities for its investors but also its employees.

Shift Technologies and Insurance Acquisition Corp

Shift Technologies, a market leader in used cars online selling is also set to join the New York Stock Exchange through a reverse merger with Insurance Acquisition Corp. Online car buying is set to be on the rise with the pandemic keeping potential buyers from physical car dealerships. Buying a used car will basically shift from the traditional handshake deals to having it delivered at home. This trend whose main contributor is the ongoing pandemic crisis could rise in the near future.

The used car market is a billion dollar industry, which is headed for a major disruption by players such as Shift Technologies who also have huge investment backing from Lithia Motors and Goldman Sachs. Going public will bring about a huge capital infusion which will in turn fund the company's growth strategies and increase its range of product offerings.

Famous Reverse Mergers


There are three key ways for companies to go public, each with its own advantages and disadvantages. The first is to use an investment bank and Initial Public Offering (IPO). The second option is to use a lawyer and auditor to file paperwork reporting as a public company, and the third, and arguably the most advantageous, is to initiate a reverse merger.


What is a Reverse Merger?
Reverse mergers are mergers acquired by a private company in order to make themselves public. While the initial process of becoming a public company is complicated, long-winded and expensive, using a reverse merger is an easy way for a private company to convert to public and get listed on the exchange.
Reverse mergers have becoming a very respected way for businesses to restructure. While lawsuits are fairly common, reverse mergers have a number of advantages, and help private companies become listed as public without the issues that stem from listing a company via an IPO.

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