The shares of cryptocurrency miner BitNile (NYSEMKT:NILE) are soaring after the company announced that it planned to enable its subsidiary, TurnOnGreen, to become a separate, public company. TurnOnGreen develops electric vehicle charging solutions. Despite soaring 60% in early trading to 90 cents, NILE stock remains well below its 52-week high of $3.70.
So what do you need to know?
According to the press release, TurnOnGreen will become a subsidiary of Imperalis (OTCMKTS:IMHC), another subsidiary of BitNile. After Imperalis acquires TurnOnGreen, Imperalis will change its name to TurnOnGreen.
Additionally, BitNile said it plans to help Imperalis list its shares on the Nasdaq after the merger.
What Happened With NILE Stock
NILE stock is soaring today thanks to another key detail from the press release. BitNile said that it “expects to distribute to BitNile stockholders approximately 140 million of its common shares and an equal number of warrants” to buy TurnOnGreen’s stock. In other words, NILE shareholders will have early access to a new EV charging player. Executive Chairman Todd Ault III said:
“TurnOnGreen [will be] dedicated to continuing the development, manufacturing and sales of its proprietary power solutions and EV charging systems serving both residential and commercial segments. … We believe this transaction, creating a pureplay public company focused on EV chargers and power solutions, will be accretive in value for our stockholders.”
BitNile mines Bitcoin (BTC-USD) and makes a variety of other products. The market capitalization of NILE stock is $75 million.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
