Shares of IKONICS (NASDAQ: IKNX) are surging on Friday after the announcement of a merger agreement with TeraWulf, the bitcoin mining company.
The combined company will change its name to TeraWulf Inc and is expected to be listed on the Nasdaq under the trading symbol “WULF”.
TeraWulf is positioned to generate environmentally sustainable bitcoin at an industrial scale in the US using over 90% zero-carbon energy. With 60,000 miners on order, TeraWulf expects to have 50 MW of mining capacity online this year.
MN imaging technology company, IKONICS, is to become a subsidiary of the combined company and positioned for sale.
IKONICS shareholders will receive $5 per share and the contingent value right (CVR) and collectively retain 2% of the combined company's stock.
IKONICS shareholders will also be entitled to receive 95% of the net proceeds from any sale of IKONICS's legacy business completed during the 18 months following the closing of the business combination.
“As we prepare TeraWulf to trade on the public market, we are confident that we have the in-house technology, infrastructure and operations expertise to deliver unparalleled value for shareholders,” said Paul Prager, Chairman and CEO of TeraWulf.
IKONICS share price is currently trading at $16.73, up 48.05%, after initially climbing over 64% at the open.
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