After taking part in a share exchange transaction, Romeo Power Inc. (NYSE: RMO) shares were up 6.06% at $0.56 at the last check. In the last session, RMO’s stock closed at $0.53 fluctuating between $0.5301 and $0.62.
RMO has reminded of what?
In an exchange offer by Nikola Corporation, Romeo Power (RMO) reminded its stockholders to tender their shares.
- RMO reminded shareholders to exchange all their shares of common stock by midnight Eastern Time on September 26, 2022.
- As announced on August 1, 2022, Nikola and RMO have entered into a definitive joint venture agreement.
- As a result of the transaction, RMO shareholders will receive 0.1186 Nikola stock shares for each RMO share, representing a pro forma ownership interest of approximately 4.5%.
- Romeo’s equity would be valued at approximately $144 million at the exchange ratio, which represents a premium of approximately 34% over Nikola’s and RMO’s closing share prices on July 29, 2022.
- Following a comprehensive evaluation of strategic alternatives, RMO’s Board of Directors unanimously determined that the Merger Agreement was in the best interests of its stockholders and Romeo.
- Romeo stockholders are therefore encouraged to tender their shares under the Offer as recommended by the RMO Board.
- In the event that less than a majority of the outstanding shares of RMO common stock are tendered, Nikola will not be able to complete the Offer.
- RMO common stock can be tendered by instructing their broker or another nominee if they hold shares through a broker, dealer, commercial bank, trust company, or another nominee.
- Tenders should be submitted promptly by stockholders through their brokers or other nominees.
Reasons to Tender to the Nikola Offer
- According to the proposed exchange ratio, Romeo Power’s closing share price on July 29, 2022 was approximately 34% higher than today.
- In order to determine what strategic alternatives may be available to Romeo, the Board of Directors conducted a comprehensive review.
- Romeo Power (RMO) and its stockholders deemed a merger with Nikola to be in their best interests for a variety of reasons.
- RMO stockholders will be able to participate in Nikola’s continued growth through the combination.
- Additionally, the combined company’s value is likely to reflect any potential appreciation.
