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InfoSonics Closes Acquisition of Apple Partner Cooltech in Stock Transaction
Tuesday 13 March 2018

13 March 2018 - California, US-based wireless device supplier InfoSonics Corp. (NASDAQ: IFON) has closed the acquisition of Florida, US-based licensed Apple partner and reseller Cooltech Holding Corp. in an all-stock transaction, the company said.

Upon the closing of the merger transaction, Cooltech will become a wholly owned subsidiary of InfoSonics in exchange for 62.5m shares of InfoSonics common stock.

Additional terms of the transaction were not disclosed.

InfoSonics said it believe this merger represents an accretive opportunity for InfoSonics shareholders to participate in Cooltech's growth and maximise the value of the company with several synergies between the businesses.

Under the deal, Cooltech shareholders received 1,874,769 InfoSonics shares consisting of 1.241m common shares and 633,769 shares of the company's 0% series A convertible preferred stock to those Cooltech shareholders who, as a result of receiving common stock, would own in excess of 4.99% of the company's common stock after the merger, in exchange for each share of the Cooltech's capital stock outstanding immediately prior to the merger.

In addition, in accordance with the terms of a securities purchase agreement, dated as of August 3, 2017 between the company and certain accredited investors, the company issued an aggregate of 175,000 shares of common stock and 175,000 warrants to purchase 175,000 shares of common stock in exchange for an aggregate of USD 1.75m in cash.

Cooltech said that, through InfoSonics, it will enter public markets and execute on growth plans in various regions with strong partners.

InfoSonics manufactures wireless handsets, tablets and related products to carriers, distributors and retailers in Latin America under the verykool brand.

Cooltech is an Apple-licensed partner and reseller that operates as a vertically integrated company combining a diverse distribution business with a growing retail footprint under its OneClick branded stores.
Date Published: 13/03/2018
Target: Cooltech Holding
Country: USA
Deal Size: 33.75m (USD)
Sector: IT/Online Services
Type: Corporate acquisition
Financing: Stock
Status: Closed
Buyer: InfoSonics Corp