Sphere 3D to issue 111 million common shares to Gryphon shareholders
Peter Tassiopoulos, the CEO of Sphere 3D said that Gryphon’s future focus on mining with 100% renewable energy will set the standard for mining firms. He said that they have been designing GPU-based convergent systems for a long time and they are thrilled to apply what they learned to improve Gryphon’s operations. Peter added that the merging of the two firms will be opportunity to create shareholder value.
As part of the merger, Sphere 3D will issue 111 million common shares to Gryphon shareholders, subject to adjustment, resulting in Sphere 3D shareholders owning approximately 23% of the combined company on a fully diluted basis and Gryphon shareholders owning the remaining 77%. The merger will close in the third quarter of 2021, subject to stockholder approval and other closing conditions.
The Company will continue to trade on the NASDAQ once the merger is completed and all regulatory approvals have been obtained. Already boards of directors of both companies have given their approval to the deal. It is important to note that the merger agreement is subject to closing conditions and the parties may terminate it in certain situations.
Rob Chang to be CEO of the new combined company
Rob Chang, the Chief Executive Officer of Gryphon, will be the CEO of the combined firm. Equally, several Gryphon leadership members will hold vital roles in the combined firm. The post-merger combined company’s board of directors will be made up of seven directors, including two members of Sphere 3D’s current board of directors.