Key points:
- BitNile stock soared 80.7% on TurnOnGreen’s takeover by its subsidiary.
- The move will see TurnOnGreen become a publicly-traded company.
- Imperialis will cease to exist much like a SPAC as TurnOnGreen takes over.
The Bitnile Holdings Inc (NYSEAMERICAN: NILE) stock price soared 50% after announcing the acquisition of its electric vehicle (EV) charging and power solutions subsidiary TurnOnGreen by Imperalis Holding Corp.
Also read: The Best EV Charging Stocks to Buy Right Now.
The two companies have signed a securities purchase agreement (SPA) allowing Imperalis Holding Corp. (OTC Pink: IMHC), a publicly-traded subsidiary of BitNile, to acquire TurnOnGreen, which will become a subsidiary of Imperalis after the acquisition.
Investors wondering why BitNile has initiated a takeover of one of its subsidiaries by another one of its subsidiaries is because Imperalis is publicly traded and TurnOnGreen is a private company.
It is much easier to get a private company listed by merging it with a public company, much like what we have seen with the Special Purpose Acquisition Companies (SPACs), than applying for a direct listing to the stock market, which is a lengthy and costly process.
Imperialis will change its name to TurnOnGreen once the takeover is complete, and the new company shall split into two operating divisions, Digital Power Corporation and TOG Technologies Inc.
Furthermore, Imepralis will liquidate its three dormant subsidiaries leaving the new company with the two TurnOnGreen subsidiaries.
Milton “Todd” Ault, III, BitNile’s Executive Chairman, said: “We are excited to sponsor the acquisition of TurnOnGreen by Imperalis that will, upon closing of the SPA, result in a publicly-traded company, TurnOnGreen, dedicated to continuing the development, manufacturing and sales of its proprietary power solutions and EV charging systems serving both residential and commercial segments. We look forward to TurnOnGreen’s contribution towards enabling the electrification of American vehicles and its participation in reshaping the nation’s infrastructure to support this green technology.”
BitNile shareholders will benefit from the transaction since the company will distribute 140 million of its common shares to existing shareholders and a similar number of warrants to purchase shares.
TurnOnGreen’s current CEO Amos Kohn and its Chief Revenue Officer (CRO) Marcus Charuvastra will continue leading the company after the acquisition.
Amos Kohn, TurnOnGreen’s CEO, said: “We look forward to the closing of the acquisition and the ability of TurnOnGreen to leverage public markets to drive the development and distribution of our innovative technology,”
Adding:
“TurnOnGreen has a team of experienced professionals, and we are excited about the stockholders of BitNile becoming stockholders of TurnOnGreen and together continuing the journey to deliver on the vision of making green energy technology a part of our everyday lives.”
Investors cheered the announcement, as evidenced by the massive rally in its share price, and over 22.5 million shares had changed hands at writing.
BitNile stock price.
BitNile stock price surged 80.7% to trade at $1.0096, rising from Friday’s closing price of $0.5587.