- Industrial monitoring systems firm Electro-Sensors, Inc (NASDAQ: ELSE) and Mobile X Global, Inc, a connectivity-as-a-service company, agreed to merge and re-name the combined company Mobile X Global, Inc.
- Mobile X Global, Inc will launch Mobile X, a new wireless brand positioned to disrupt the wireless industry.
- Shares of the company will likely trade on the Nasdaq under the ticker symbol "MOBX" upon closing the merger by the third quarter of 2022.
- Mobile X Global shareholders will likely own 76% of the company, Electro-Sensors shareholders 11%, and new equity investors 13% of the company.
- In addition to their continuing interest in the combined company, Electro-Sensors shareholders will receive special cash dividends expected to total $18 million, which would be $4.83 per share of Electro-Sensors, whose closing price on June 10, 2022, was $4.85.
- Mobile X Global Chair and CEO Peter Adderton will become the Chair and CEO of the combined company.
- Adderton said, "We believe the new combined company will also provide the vehicle for future expansion so that we can serve a new generation of borderless consumers and use our proprietary XO.1 platform to help connect the billions of IoT devices expected worldwide. "
- Price Action: ELSE shares traded higher by 19.59% at $5.80 in the premarket on the last check Monday.
Read at Benzinga