Lianlou Smart (LLIT) Stock Rockets on Merger News

Lianlou LLIT Stock News

Lianluo Smart Ltd (NASDAQ: LLIT) is making a run for the top in the market this morning, and for good reason. In a weekend press release, the company announced that it has entered into a merger agreement. Here’s what’s going on:

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LLIT Stock Is Flying on Merger News

In a press release issued over the weekend, Lianlou Smart entered into an Agreement and Plan of Merger with Newegg. Upon the closing of the transaction Newegg shareholders will become the majority shareholders of LLIT.

As part of the transaction LLIT said that it will sell its equity holdings in Lianlou Connection Medical Wearable Device Technology to Beijing Fenjin Times Technology Development. The disposition will become effective immediately folling the completion of the merger.

Also, upon completion of the merger, Lianlou Smart will conduct a public offering of common stock with the expectation of raising $30 million. Of course, LLIT will seek shareholder approval of the Restructure as well as an amended memorandum and articles of association to eliminate its dual class structure, to move forward with a reverse split if needed to meet Nasdaq compliance, and to increase its number of authorized shares.

Once the transaction comes to a close, LLIT plans on changing its name to Newegg Commerce. The company also expects to continue to be listed on the Nasdaq under a new ticker symbol. Finally, upon the completion of the merger, the board of directors at LLIT will replace the board of directors and officers of Newegg.

In a statement, Anthony Chow, Global CEO at Newegg, had the following to offer:

Over the course of nearly two decades, Newegg built a highly reputable and widely recognized name in the tech-focused ecommerce market. As we prepare to become a publicly traded company, we are well positioned to build on this foundation to take Newegg to the next level. Combining our deep market expertise in ecommerce and leadership in technology, we are structured and prepared to capitalize on new strategic initiatives and partnerships.

The Bottom Line

The news released by Lianlou Smart proved to be overwhelmingly positive. This merger will greatly expand the company’s offering and overall value. So, it’s not surprising to see that investors are excited and LLIT stock is running for the top.

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