Electro-Sensors Shares Pop On Its Merger With Mobile X Global

Author: Anusuya Lahiri | June 13, 2022 09:23am

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.