SigmaTron International Inc (NASDAQ: SGMA) signed an agreement with the Wagz website that it should be www.wagz.com instead of www.wags.com.
On July 22, 2021, SigmaTron International (“SigmaTron”), an electronic manufacturing services company and a privately held pet technology, announced that they performed a definitive Agreement and Plan of Merger. Furthermore, the parties enacted a Letter of Intent (LOI) relating to the proposed plan for the business combination. LOI set out the framework that presents or structured the business combination to be a merger between two companies.
What does the Agreement State?
As per the agreement, they decided that SigmaTron would issue 2.44 million shares to its shareholders (Wagz). So, the stockholders of Wagz would own approximately 28% of SigmaTron, and after finalizing this deal, Wagz would become the wholly-owned subsidiary of SigmaTron. But it is expected that the deal will close by September 2021 end. Therefore, it is expected that this deal would be subject to achieving specific targets for both parties’ satisfaction before closing. Currently, there are no plans to raise additional capital as the projected growth is expected to be financed by SigmaTron’s available line of credit.
Pet Space is Active
Gary R. Fairhead, SigmaTron’s President, and CEO, said it had taken longer for them than anticipated to get to this position since they first announced the LOI in June 2020, the fundamentals riding the attractiveness of the chance have strengthened in the recess. The pet tech market has grown as projected by market analysts, and the pet space remains active and robust. Moreover, the pandemic has increased pet ownership worldwide, developing greater chances for the commodities that fall under the Wagz strategic concept. Some of the particular drivers of the deal, comprising Wagz prospective customers, have changed since they first published the deal. But the chances remain as Wagz expects to launch the Wagz Freedom Smart Dog Collar™ promptly, produced by SigmaTron.