Crown Electrokinetics announces merger agreement at $3.15 per share

LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ: CRKN), a company specializing in optical and fiber infrastructure solutions, has entered into a definitive merger agreement with Crown EK Acquisition LLC and its subsidiary Crown EK Merger Sub Corp. The transaction was announced today, with the company’s Chairman and CEO, Douglas Croxall, leading the acquiring entity. The announcement comes as Crown’s stock trades near its 52-week low, having declined nearly 97% over the past six months. According to InvestingPro analysis, the company currently maintains a market capitalization of just $2.1 million.

Per the agreement terms, a tender offer will be initiated to acquire all outstanding shares of Crown’s common stock for $3.15 each, representing a significant premium to the current trading price of $1.20. This offer is expected to begin within the next 15 business days and will remain open for 20 business days, subject to extension according to the merger agreement and SEC rules. InvestingPro data shows the company holds more cash than debt on its balance sheet, though it’s been quickly burning through its cash reserves.

A special committee of independent directors has unanimously approved the proposed transaction, which aims to make Crown a wholly owned subsidiary of the parent company. The committee also obtained a fairness opinion from an independent financial advisor, affirming the deal’s fairness to Crown’s unaffiliated public stockholders.

The completion of the tender offer and subsequent merger is not contingent on financing and is anticipated to close swiftly after the tender offer concludes, including the potential use of a top-up option if necessary.

Crown, recognized for its innovative technology infrastructure solutions, operates across smart windows and construction sectors. The company aims to challenge industry norms and redefine standards with its cutting-edge solutions. However, InvestingPro analysis reveals challenging fundamentals, with negative gross profit margins and a weak overall financial health score. For deeper insights into Crown’s valuation and 15+ additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

The communication contains forward-looking statements regarding the acquisition and its potential effects. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.

The tender offer has not yet begun, and the communication is not an offer to purchase or a solicitation of an offer to sell Crown’s shares. Detailed tender offer materials will be filed with the SEC and made available to Crown’s stockholders.

Investors and stockholders are urged to read the tender offer materials and the Solicitation/Recommendation Statement when they become available, as they will contain important information about the tender offer.

This news article is based on a press release statement. Additional information about the transaction will be filed with the SEC and will be accessible on Crown’s investor relations website.

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