Brüush Oral Care (NASDAQ:BRSH) stock is up by about 40% today. The company announced that it has entered into an agreement to merge with Arrive. Brüush operates as an e-commerce subscription provider of toothbrushes and brush head refills, while Arrive provides last-mile autonomous delivery services. Furthermore, Brüush is a wholly-owned subsidiary of PubCo.
This merger is quite interesting, as both companies operate in completely different industries. Following the merger, the combined companies will focus on Arrive’s mailbox-as-a-service (MaaS) platform. The platform facilitates the exchange of goods between humans, robots and drones using a smart mailbox with the assistance of artificial intelligence (AI). Brüush did not mention its oral care services being picked up by the combined entity.
“We are thrilled to announce this proposed merger with Arrive,” said CEO Aneil Manhas. “In a world hungry for a future of automated last-mile delivery, there is a critical need for a smart and secure exchange point, which Arrive is poised to redefine with its smart mailbox technology.
BRSH Stock: Brüush Agrees to Merge with Arrive
The combined entity will trade under the ticker symbol “ARRV” on the Nasdaq Capital Market following completion of the merger. It will be a wholly-owned subsidiary of PubCo. In addition, Arrive’s outstanding shares will be exchanged for shares of PubCo that will represent 94.5% of PubCo’s diluted issued and outstanding shares. PubCo’s legacy shareholders will own 5.5% of PubCo’s diluted issued and outstanding shares.
“Prior to Closing, PubCo will, among other things, effect a reverse stock split with respect to PubCo’s common shares at a ratio within the range of 6-for-1 to 200-for-1,” said Brüush. In addition, PubCo has agreed to maintain a minimum cash and cash equivalents balance of $10 million at the closing of the transaction.
Meanwhile, BRSH stock is currently in noncompliance with Nasdaq’s minimum bid requirement. Brüush has 180 calendar days, or until May 13, 2024, to regain compliance. It may be eligible for another 180 calendar day extension if it is unable to regain compliance by then. Regaining compliance requires having a closing bid price of at least $1 for at least 10 consecutive business days.
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On the date of publication, Eddie Pan did not hold (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.
