Code Rebel (NASDAQ:CDRB) more than doubled on Friday after the enterprise software company entered into a non-binding Letter of Intent to engage in a merger with Aegis Identity Software.
Shares of the Kahului, Hawaii-based company doubled to $4.39 at 10:23 a.m. in New York after reaching $5.79 earlier in the session.
Aegis Identity is a privately-held company and a provider of on-premise and cloud-based identity and access management products and services for the K-12 and higher education markets.
Aegis Identity's enterprise software integrates key applications into a one identity/access platform that ensures the correct user is getting secure access to its authorized data anytime, anywhere and on any device, Code Rebel said in a statement late on Thursday.
Under the terms of the LOI, it is expected that Englewood, Colorado-based Aegis Identity will be merged with Code Rebel, which will remain the surviving entity.
It is contemplated that Aegis Identity's shareholders will own 60% of the issued and outstanding shares of Code Rebel, following the merger.
Code Rebel has also provided Aegis Identity with an unsecured loan of $0.5mln. The loan will be discharged in the proposed merger.
If the merger is not consummated, then the loan is due on June 30, 2016 or upon the occurrence of certain other specified events.