Apparently according to a number of sources, including the SAN DIEGO PRNewswire, InfoSonics Corporation (NASDAQ:IFON) could soon be partners with the Cooltech Holdings Corp. This follows after the two companies announces that they have finally entered into a definitive merger agreement. With this agreement, it will be possible for InfoSonic to acquire major shared which have recently been held by Cooltech. This, therefore points to the direction that InfoSonic will be a major shareholder while the other partner becomes a minor shareholder. This new development, according to different sources will see to it that InfoSonics acquires Cooltech both in short and in the long run.
A Close Insight about Cooltech
Sources have it that Cooltech is an independent company which has been licensed by Apple Corporation to operate as a vertically integrated company which deal in retail responsibilities of brands developed by Apple. With this new agreement, Cooltech will be in a position to support its operations because of the fact that InforSonics also deals with manufacture of devices which are in line with what Cooltech and its other partners are doing. According to different business analysts, Cooltech will be in a good position to grow its business ventures with the presence of InfoSonics as one of its partners.
Expectations from the Merger between the Two Companies
Much is expected from the merger between these two companies. According to different sources, Cooltech will become a wholly-owned subsidiary of InfoSonics. And this will mean that $62.5 million worth of stocks will be transferred to the InfoSonics common stock. Apparently, the merger has already been approved by the Special Committee of InfoSonics’s Board of Directors meaning that the only thing remaining is the approval by the company’s shareholders. It is expected that the whole transaction process will close by the end of 2017.
In a statement, the President and the CEO of Cooltech, Mauricio Diaz, expressed his excitement when he said “we are excited about this combination with InfoSonics to enter he public markets as we continue to execute on our growth plans in various regions with strong partners” From this statement, it is clear that with experience in retailing consumer electronics from high profile companies, Cooltech will be in a good position after all.
InfoSonics Corporation stocks closed yesterday’s session at $0.52 after declining $0.02 or 2.86.
