Communication Systems (NASDAQ:JCS) stock is on the rise Tuesday after announcing merger plans with Pineapple Energy.
Here’s everything investors in JCS stock need to know about the merger deal.
- The plan is for a reverse merger that will have a subsidiary of Communication Systems merging with Pineapple Energy.
- Following this, Pineapple Energy will become a wholly-owned subsidiary of Communication Systems.
- After that, Communication Systems will change its name to become Pineapple Energy.
- This will also see shares of JCS stock switch over to the new PEGY stock ticker.
- The combined company will be lead by a mix of leaders from the two companies.
- This will have Pineapple Energy CEO Kyle Udseth taking on that same role at the combined company.
- The same is also true for Communication Systems executive chairman Roger Lacey and CFO Mark Fandrich.
- Communication Systems is an Internet of Things (IoT) edge products and services company.
- Pineapple Energy is a company that offers “residential solar, battery storage, and grid services solutions.”
- When the deal closes, the combined company will focus on the growing home solar market.
- The deal still needs to complete customary closing conditions before it’s complete.
- That includes getting approval from regulators and shareholders.
- So long as there are no problems with this, the deal is set to close in the second quarter of 2021.
JCS stock was up 60.8% as of Tuesday morning and is up 95% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.