MGO Global (NASDAQ:MGOL) stock is rocketing higher on Thursday after the lifestyle brand portfolio company announced a business combination with Heidmar.
Heidmar is a pool management company serving the crude oil and refined petroleum tanker market. The business combination will see it survive the merger. This will also have MGOL switching to the HMAR stock ticker.
The merger will be handled through a holding company structure. This will see MGO Global and Heidmar become wholly owned subsidiaries of a Marshall Islands company.
With this agreement, shares of MGOL stock will be traded for shares of the Marshall Islands company on a one-for-one basis. Holders of Heidmar will also receive $300 million of shares of the new company in an exchange. This matches the price per share offer for MGOL.
Additionally, Heidmar investors can get earnouts of $30 million in additional shares. This is contingent on the combined company generating $45 million of revenue, $30 million EBITDA or $25 million of net income in fiscal 2024.
Details of the MOGL Stock Deal
The boards of both companies have given their unanimous support to the deal. One it has approval from regulators and shareholders, the merger agreement will close in the third quarter of 2024.
MGOL stock is up 133% as of Thursday morning. That comes with more than 120 million shares of the stock traded. This is well above its daily average trading volume of about 7.4 million shares.
Investors will want to keep reading for more of the most recent stock market stories!
We have all of the hottest stock market news available on Thursday! A few examples include what’s going on with shares of Nvidia (NASDAQ:NVDA), Palantir (NYSE:PLTR) and Super Micro Computer (NASDAQ:SMCI) stock today. All of this news is ready at the links below!
More Stock Market News for Thursday
- NVDA Stock Keeps Climbing as Nvidia Dethrones Microsoft as No. 1 Company
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- Elon Musk and His Grok AI Are Supercharging Super Micro (SMCI) Stock
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On the date of publication, William White 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.
