China-based Lianluo Smart, which designs, develops and markets medical products and medical components, has signed a merger agreement with US e-commerce company Newegg.
According to the agreement, Lianluo Smart’s fully owned subsidiary Lightning Delaware Sub will merge with Newegg.
Subsequently, the stockholders of Newegg will become the majority owners of Lianluo Smart.
Furthermore, Lianluo Smart will sell its equity stake in Lianluo Connection Medical Wearable Device Technology to Beijing Fenjin Times Technology Development according to the equity transfer agreement.
The arrangement will be effective immediately after the closing of the merger and will provide full ownership of Lianluo Connection to Fenjin Times.
The financial details of the deals were not disclosed.
Lianluo Smart will also conduct a public offering of its common shares with expected gross proceeds of approximately $30m.
In connection with the closing of the merger agreement and the financing, the company plans to change its name to Newegg Commerce. It will remain listed in Nasdaq under a new ticker symbol.
The board of directors and officers of Lianluo Smart will be replaced by the board of directors and officers of Newegg once the merger is completed.
Commenting on the development, Newegg Global CEO Anthony Chow said: “Over the course of nearly two decades, Newegg built a highly reputable and widely recognised name in the tech-focused e-commerce market. As we prepare to become a publicly traded company, we are well positioned to build on this foundation to take Newegg to the next level.
“Combining our deep market expertise in e-commerce and leadership in technology, we are structured and prepared to capitalise on new strategic initiatives and partnerships.”
The completion of the restructuring and the financing ventures are subject to a number of conditions, including the approval by Lianluo Smart shareholders.