Nocera Signs LOI for 9.99% INERGX Stake in Cash-and-Stock Deal, Following Reverse Split
NCRA is trading near its 52-week low of $1.719 (2.9% below the low) on elevated volume (23× avg).
Summary
Nocera has signed a non-binding Letter of Intent (LOI) to acquire up to a 9.99% minority stake in INERGX Energy Optimisation through a cash-and-stock deal. This strategic move for the financially distressed company follows an 8-K filing today, which also announced the completion of a 1-for-30 reverse stock split yesterday. Nocera, which has been facing a Nasdaq delisting threat and issued a going concern warning, recently secured a highly dilutive $100 million equity facility. Further highlighting potential dilution and uncertainty from the stock component of the LOI and the equity facility, the company has filed to offer and resell up to 7.5 million common shares by a selling stockholder.
At the time of this announcement, NCRA was trading at $1.67 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $933.3K. The 52-week trading range was $1.72 to $72.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.