Benzinga - by Adam Eckert, Benzinga Staff Writer.
SCWorx Corp (NASDAQ: WORX) shares are trading higher Tuesday after the company announced that it signed a definitive agreement and plan of merger with American Environmental Partners.
What Happened: SCWorx and American Environmental signed a definitive agreement and plan of merger on Dec. 21. Upon completion of the agreement, the combined company will be listed on the Nasdaq as American Environmental Partners, Inc. and trade under the ticker symbol "AEPT."
American Environmental Partners CEO Brad Domitrovitsch called the agreement a "transformational event" for SCWorx as it brings the company one step closer to listing on the Nasdaq.
"We have an exciting opportunity ahead of us and I'm confident we have the right team to execute on our strategy," Domitrovitsch said.
Following closing of the agreement, American Environmental shareholders will own 83% of the combined company and SCWorx shareholders will own 17%. Given American Environmental shareholders' majority ownership, the transaction will be considered a "reverse merger." The transaction has been approved by the boards of both companies and is expected to close in the first quarter of 2024.
SCWorx is a provider of data content and services related to the repair, normalization and interoperability of information for healthcare providers.
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WORX Price Action: SCWorx shares were up 11.4% at $1.95 at the time of writing, according to Benzinga Pro.
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