Red Alert, a developer of alert technology related to homeland security, and SIMEX, a provider of digital surveillance systems, are merging their companies through an all-stock transaction.
As part of the deal, the merged company will be called Red Alert, and a new stock ticker will be sought. SIMEX traded over the counter under the symbol SMXT.
The stock closed at 13 cents on Monday. It has a 52-week high of $1.01.
Tim Holly, chief executive officer of Red Alert, will lead the merged company. SIMEX officers and board directors stepped down other than Kjell Jagelid, who served as president of SIMEX.
Under the deal, Red Alert stockholders are to receive 3.9 million shares of SIMEX preferred stock. They will be convertible to 30 shares of common stock at a later date. Red Alert ends up owning 78 percent of the combined venture, the companies said in a statement.
“SIMEX’s digital surveillance systems business, coupled with Red Alert’s security business, will provide a strong foundation in the rapidly growing homeland security market,” Holly said in a statement.
Red Alert: www.redalertgroup.com