- The stock price of MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) fell by 23.81% today. This is why it happened.
The stock price of MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) fell by 23.81% today. Investors have been responding negatively to Mer Telemanagement Solutions announcing that its shareholders voted to approve all of the resolutions included on the agenda of the extraordinary meeting of MTS’s shareholders, held on July 21, 2021 — including the proposed merger with SharpLink, the appointment of a new board of directors for the post-merger company, and other matters related to the merger.
SharpLink has been pioneering innovative sports betting conversion and engagement technologies that enable sports leagues, fantasy sports sites, and sports media companies to connect fans to relevant and timely betting content sourced from SharpLink’s sportsbook partners.
The resolutions were approved by an overwhelming majority of MTS shareholders, consisting of about 99% of the votes cast at the meeting. And the company expects that the merger will be consummated promptly following the fulfillment or waiver of other outstanding conditions to closing, including the receipt of listing approval for the combined entity from The Nasdaq Stock Market.
MER Telemanagement Solutions had announced the deal originally back in April.
And under the terms of the merger agreement, the holders of SharpLink’s outstanding common stock and preferred stock immediately prior to the merger will receive ordinary shares and preferred shares, as applicable, of MTS in the merger. On a pro forma and fully-diluted basis for the combined company, SharpLink shareholders are expected to own about 86% of the combined company (inclusive of a stock option pool of 10% of the fully-diluted outstanding share capital of the combined company).
KEY QUOTE:
“We are pleased with the very strong vote of confidence by our shareholders for the transaction with SharpLink. We believe this merger and new direction for the company has the potential to provide significant value for our shareholders as we rapidly expand our business in the U.S. online sports betting industry. The SharpLink team, led by industry veterans with proven track records of success, has built a pioneering company in this sector that we believe will thrive following access to the public capital markets. We look forward to closing this transaction in the very near term.”
— Roy Hess, MTS CEO
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