- 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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.