In pre-market session today, Communications Systems, Inc. (JCS) shares have been rising aggressively. As of 09:16 a.m. EST, the stock was at a rise of 111.21% to reach $11.30. The uptrend came on the heels of news about company’s merger deal.
The driving force:
Communications Systems, Inc. offers enterprise and industrial companies with IoT-enabled internet of things products and services. The Company operates under two operating segments — Electronics & Software and Services & Support. Our Electronics and Software segment brings customers easy provisioning and proactive management at network edge with its innovative solutions. This helps them minimize their administrative burden of the operator by providing actionable insights regarding their edge devices and connected endpoints. Its Services & Support segment provides services for designing, deploying, supporting, and maintaining customer networks.
In today’s announcement, JCS announced that it has reached a definitive merger agreement with privately held Pineapple Energy, LLC, a leading national provider of battery storage and solar solutions for residential and commercial premises.
- When the deal closes, JCS will trade as Pineapple Energy, leveraging a business model that is focused on the rapidly growing home solar industry.
- A new ticker symbol “PEGY” will be assigned to the newly combined company’s shares on the Nasdaq Capital Market.
- JCS’ Board of Directors has approved the merger agreement, and the transaction is subject to shareholder approval.
- A new JCS subsidiary will be merged with and into Pineapple in a statutory reverse triangular merger governed by Delaware law.
- Close of the deal is likely to occur in the second quarter of 2021.
- As a result of the merger, Pineapple will become a wholly-owned subsidiary of JCS.