Coffee Holding Inks Merger & Share Exchange Agreement With Delta Corp Holdings

  • Coffee Holding Co Inc JVA has entered into a definitive merger and share exchange agreement with a Bulk & Energy logistics holding company, Delta Corp Holdings Limited.
  • Coffee Holding and Delta will each become wholly owned subsidiaries of a newly created holding company incorporated under the laws of the Cayman Islands, Delta Corp Holdings Limited (Pubco).
  • The combined public company will have an implied diluted pro forma enterprise value of approximately $655 million.
  • The transaction will be completed at a 127% premium to Coffee Holding's stock price, translating into an implied price per share of $5.50.
  • Delta shareholders will become the majority shareholders of Pubco.
  • The deal is expected to close in the first quarter of 2023.
  • The newly formed company is expected to trade on Nasdaq under the ticker symbol "DLOG."
  • Coffee Holding held $1.4 million in cash and equivalents as of July 31, 2022.
  • Price Action: JVA shares are trading lower by 1.03% at $2.40 on the last check Friday.
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