SigmaTron to Merge with Pet Tech OEM

摘要

SigmaTron and pet tech company Wagz have executed a letter of intent to merge in an all-stock deal. The deal calls for SigmaTron to issue approximately 2.27 million new shares of stock, giving Wagz shareholders approximately one-third of the combined company. The deal is expected to close by the end of August, subject to a material definitive agreement and SigmaTron's raising of $7.5 million in additional capital that it projects will be needed for the expanded operations. Upon completion, Wagz will be a standalone operation of SigmaTron. For the past two years Wagz has outsourced part of its product portfolio to SigmaTron. "Over the last two years, we have become immersed in the pet tech market with Wagz as our customer," said Gary R. Fairhead, president and CEO, SigmaTron. "We have been impressed with the growth of the pet sector, and data show it is practically recession-proof. Recent reports indicate pet ownership during Covid-19 has increased, accelerating what was already a very strong market. Wagz would benefit from our ability to provide world-class manufacturing services through our global footprint and supply chain, and SigmaTron would benefit from new high-margin recurring revenue."