JCS - Communications Systems to merge with Pineapple Energy

Communications Systems (JCS) rallied 31% premarket after entering into a definitive merger agreement with privately held Pineapple Energy, a growing U.S. operator and consolidator of residential solar, battery storage, and grid services solutions.On closure, CSI will commence doing business as Pineapple Energy, with a business model focused on the rapidly growing home solar industry; members of both CSI's and Pineapple's management teams will assume leadership roles in the combined company.Under merger agreement terms, each CSI shareholder will receive Contingent Value Rights that reflect the right to receive that shareholder's percentage of the net proceeds from the sale of legacy CSI businesses and assets; Members of Pineapple will receive base consideration of 15.6M shares of CSI.As of Sep. 30, 2020, CSI's net book value was $47.2M, it had cash, cash equivalents, and investments of $21M and had working capital of $28.5M.Current CSI shareholders will retain shares in the combined company, initially holding ~37%

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Communications Systems to merge with Pineapple Energy