Here’s Why BitNile’s Share Price Soared 80.7% Upon TurnOnGreen Takeover

Key points:

  • BitNile shares jumped 80.7% following the takeover of TurnOnGreen by its subsidiary.
  • This move will see TurnOnGreen become a publicly traded company.
  • Imperialis will cease to exist much like a SPAC when TurnOnGreen takes over.

Bitnile Holdings Inc (NYSEAMERICAN:NILE) stock price soared 50% after it announced the acquisition of its electric vehicle (EV) charging and power solutions subsidiary TurnOnGreen by Imperalis Holding Corp.

The two companies 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 following the acquisition.

Investors wonder why BitNile initiated a takeover of one of its subsidiaries by another of its subsidiaries because Imperalis is publicly listed and TurnOnGreen is a private company.

It is much easier to get a private company listed by merging it with a public company, similar to what we have seen with special purpose acquisition companies (SPACs), than to apply for a direct stock exchange listing. , which is a long and expensive process.

Imperialis will change its name to TurnOnGreen once the takeover is complete, and the new company will be split into two operating divisions, Digital Power Corporation and TOG Technologies Inc.

In addition, Imepralis will proceed with the liquidation of its three dormant subsidiaries, leaving the new company to the two TurnOnGreen subsidiaries.

Milton “Todd” Ault, III, Executive Chairman of BitNile, said: “We are delighted to sponsor the acquisition of TurnOnGreen by Imperalis which, upon the closing of the SPA, will create a publicly traded company, TurnOnGreen, dedicated to the further development, manufacture and sale of its solutions. proprietary power and electric vehicle charging systems serving both the residential and commercial segments. We look forward to TurnOnGreen’s contribution to enabling the electrification of America’s vehicles and its participation in the overhaul of the nation’s infrastructure to support this green technology.

BitNile shareholders will benefit from the transaction as the company will distribute 140 million of its common shares to existing shareholders and a similar number of warrants to purchase shares.

Current TurnOnGreen CEO Amos Kohn and chief revenue officer (CRO) Marcus Charuvastra will continue to lead the company after the acquisition.

Amos Kohn, CEO of TurnOnGreen, said: “We look forward to the closing of the acquisition and TurnOnGreen’s ability to leverage public markets to drive the development and distribution of our innovative technology,”

Add:

“TurnOnGreen has a team of experienced professionals, and we are thrilled that BitNile shareholders will become shareholders of TurnOnGreen and together continue the journey to realize the vision of making green energy technology a part of our daily lives.”

Investors cheered the announcement, as evidenced by the massive rise in its share price, and more than 22.5 million shares had changed hands at the time of writing.

BitNile share price.

BitNile stock price 21-03-2022
Source: commercial view

BitNile’s stock price jumped 80.7% to trade at $1.0096, up from Friday’s closing price of $0.5587.

Eleanor C. William