Heidmar in second try to go public via new merger deal
Source: Splash247
Athens-based pool operator and shipmanager Heidmar has lined up a merger deal with lifestyle brand portfolio company MGO Global, marking the company’s second attempt at a stock market listing.
Pankaj Khanna-led Heidmar, with more than 60 tankers and bulkers under commercial management, first tried to go public via a merger with Home Plate Acquisition Corporation but dropped these plans in October last year.
The new deal will see the combined company operate under the Heidmar brand and be listed on Nasdaq. The boards of directors of both companies have unanimously approved the merger, which is expected to close late in the third quarter of 2024. MGO’s existing shareholders are expected to own approximately 5.6% of the merged entity.
Khanna (pictured) said the deal marks “a key inflexion point in the ongoing evolution of Heidmar as a global leader in the marine transportation services industry.”
Under the agreement, shareholders of MGO will receive one share of the new company for each stock they own, with an implied fully diluted equity value of $18m. Heidmar’s shareholders will exchange their shares of Heidmar common stock for $300m in registered common shares. The deal also includes an earnout payable to existing shareholders of Heidmar of $30m of additional registered common shares if the company achieves or exceeds $45m of revenue or $25m of net income for the fiscal year ending 2024.
Heidmar’s revenues grew tenfold, from $5m in 2021 to nearly $50m in 2023, and the company also generated a net profit of $19.6m in 2023, leading to approximately 40% net margins.
“Heidmar has established a sound foundation that is expected to effectively support substantial future growth through diligent execution of our business expansion strategies. I am very proud of what the Heidmar team has achieved since we assumed leadership of the company in 2020 and look forward to leveraging the Heidmar brand and relationships built over the last four decades to fuel further growth,” added Khanna.
The original article: belongs to Splash247 .
