Concorde International Group Ltd (NASDAQ:CIGL) shares rose 61.11% in after-hours trading to $4.35 on Tuesday, following the announcement of a merger agreement with Hong Kong-based YOOV Group Holding Limited valued at $600 million.
Merger Agreement Filed With SEC
Concorde International Group filed a Securities and Exchange Commission filing disclosing the agreement and plan of merger.
According to the filing, YOOV, which provides artificial intelligence–as–a–service solutions focused on business automation through a cloud platform, will become a wholly owned subsidiary of CIGL through a merger.
Transaction Details
YOOV equity holders will receive 200 million newly issued Class A ordinary shares of CIGL. The merger values YOOV at $600 million on a fully-diluted basis, with conversion calculated using a $3 per share reference price for CIGL shares.
The transaction requires CIGL shareholder approval and Nasdaq listing authorization.
The filing also stated that Swee Kheng Chua holds 97.56% of CIGL’s voting power and has committed to vote in favor of the merger.
Upon closing, CIGL will add “YOOV” to its corporate name and adopt a new Nasdaq ticker.
Trading Metrics, Technical Analysis
Concorde International Group has a Relative Strength Index (RSI) of 72.36.
With a market capitalization of $72.86 million, CIGL has an annual trading range of $1.40 to $31.06.
The stock of the Singapore-based company, which provides security and safety solutions, has fallen 35.87% over 12 months, marking a difficult year for the company.
Currently, the stock is trading at about 4.4% of its 52-week range, very close to the low end.
Price Action: CIGL closed on Tuesday at $2.70, up 4.25%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate that CIGL has been consolidated over the long term but has shown upward movement in the short and medium term.
Photo Courtesy: jo.pix on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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