ELSE - Electro-Sensors stock gains premarket on merger with Mobile X Global

Electro-Sensors (NASDAQ:ELSE) stock gained 19% premarket on Monday after the firm and Mobile X Global said they will merge in a reverse triangular merger. The combined firm, which will be re-named Mobile X Global, will launch Mobile X - a new brand that will offer personalized wireless data, voice and messaging services. Mobile X Global's cloud-native platform is expected to enable synergies between Mobile X and ELSE's wireless industrial sensor business. Once the merger closes, Mobile X Global shareholders will own ~76% of the combined firm, ELSE shareholders ~11%, and new equity investors ~13%. ELSE shareholders will also receive special cash dividends of ~$18M, or ~$4.83 per ELSE share. A third-party institutional investor will provide equity financing of up to $20M to Mobile X Global on closing of the merger. Mobile X Global CEO Peter Adderton will become chairman and CEO of the combined firm, which will be re-named Mobile X Global. ELSE's current

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Electro-Sensors stock gains premarket on merger with Mobile X Global