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All Posts Term: Recent Reverse Mergers
12 post(s) found

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.

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.

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