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.
Either party may terminate the agreement if the other party breaches its terms, Nasdaq rejects the listing, shareholders do not approve the deal, or the transaction is not completed by Dec. 2.
Growhub has 14.87 million shares outstanding.
Trading Metrics, Technical Analysis
Growhub has a market capitalization of $20.65 million, with a 52-week high of $4.25 and a 52-week low of $0.27.
The Relative Strength Index (RSI) for TGHL is 67.40.
Over the past 12 months, the small-cap stock has dropped 75.90%.
TGHL is currently trading near its 52-week low.
The stock’s steep decline and weak performance point to continued pressure. Investors may want to see stronger signs of a recovery before confidence improves.
Price Action: The stock of the tech company closed the regular session on Wednesday at $0.81, up 23.17%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate that TGHL is experiencing long-term consolidation along with medium and short-term upward movement.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Gorodenkoff on Shutterstock.com
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