The Growhub Ltd (NASDAQ:TGHL) shares are trending on Wednesday night.
Shares of the Singapore-based agri-tech company jumped 73.08% to $1.41 after the bell, after The GrowHub disclosed in a Securities and Exchange Commission filing that it had signed a merger agreement on Tuesday with South Korea’s EnChem Co., Ltd. and its U.S. subsidiary, EnChem America Inc.
Deal Details
The merger values EnChem, a maker of electrolytes and high-functionality additives for rechargeable batteries, at approximately $400 million. According to the SEC filing, EnChem’s shareholders will receive about 142.8 million newly issued GrowHub Class A ordinary shares, representing up to 85% of the combined company on a fully diluted basis.
The deal still needs the SEC to approve a new registration statement, Nasdaq to approve the company’s listing and shareholders to vote in favor of it.
