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

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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.