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.