Communications Systems eyes best day ever after deal with Pineapple Energy
02/03/2021 18:58
** Shares of the connectivity infrastructure provider for
broadband networks JCS.O surge as much as 114% to a more than
five-year high of $11.45; on track for their best day on record
** JCS says it will merger with privately held U.S. home
energy company Pineapple Energy urn:newsml:reuters.com:*:nBw8xJsp0a
** Says deal is structured as reverse triangular merger
under which a new JCS subsidiary will be merged with Pineapple
and Pineapple will survive the merger to become a unit of JCS
** The deal is expected to close in Q2 and the new company
will trade on the Nasdaq under the ticker symbol "PEGY", says
JCS
** JCS says it will divest substantially all its current
operating and non-operating assets and distribute the sale
proceeds in the form of a cash dividend to its shareholders
** In addition to the proceeds from the divestitures, JCS
expects to pay its shareholders a cash dividend of at least
$1.00 per share prior to the closing of the deal
** JCS shareholders will initially hold about 37% of total
shares outstanding of the new company, but their ownership would
decrease over time due to earnouts to Pineapple shareholders
** Up to Monday's close, stock had gained about 17% this
year
(Reporting by Ankit Ajmera in Bengaluru)
((Ankit.Ajmera@thomsonreuters.com))