Newegg Going Public: 13 Things to Know About the Lianluo Smart Limited Reverse Merger

Newegg, an online seller of electronics, is going public thanks to a reverse merger deal with Lianluo Smart Limited (NASDAQ:LLIT).

Image of the Newegg logo on the front of a building.
Source: JHVEPhoto / Shutterstock.com

Here’s what to know about the reverse merger plans between Newegg and Lianluo Smart Limited.

  • Newegg will merge with Lianluo Smart Limited’s subsidiary Lightning Delaware Sub.
  • Following this, Lianluo Smart Limited will terminate its Class B common stock and warrants.
  • This will leave it with only a single class of common shares, which the Class B shares will be converted to.
  • The warrants will also change to be exercisable with Newegg stock.
  • After this, the company’s name will change to Newegg Commerce.
  • This will also see the company’s stock ticker change from LLIT to a new ticker.
  • However, the stock will continue to trade on the Nasdaq.
  • This will see current Newegg shareholders own roughly 99% of the new company with the remaining 1% being LLIT shareholders.
  • Once the deal is complete, Lianluo Smart Limited’s Board of Directors and officers will be replaced by Newegg’s own Board of Directors and officers.
  • The deal has the unanimous support of both companies’ Boards of Directors.
  • It still needs approval from LLIT shareholders and regulators.
  • When the deal finally closes, Newegg plans to offer up shares of its stock on public markets.
  • The company expects to gain $30 million in financing from this pubic offering.

LLIT stock was up 30.4% as of noon Monday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/10/newegg-going-public-reverse-merger-details/.

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