SilverSun Technologies, Inc. (NASDAQ: SSNT) operates as a business apps, technology and consulting company, which provides software and IT solutions to enterprise customers. Shares of the B2B tech services provider are rallying 22% through afternoon trading on Thursday, September 29, 2022. Over the past three months, SilverSun Technologies has seen average daily volume of 292,180 shares. However, volume of 797,208 shares or dollar volume of around $2.38 million, has already exchanged hands through afternoon trading.
Shares of SilverSun Technologies are gaining after the company announced that it has entered into a definitive agreement to merge with Rhodium Enterprises, Inc., an industrial-scale Bitcoin mining and digital asset technology company. Rhodium is among the largest Bitcoin mining companies in the United States and incorporates liquid colling systems and proprietary software to optimize the performance, capabilities and efficiency of its mining assets.
Under the terms of the merger agreement, SilverSun Technology shareholders will receive a cash dividend of $1.50 per share and a stock dividend representing 100% of the outstanding shares in the aggregate subsidiary of SWK Technologies Holdings, Inc. (HoldCo), and will collectively hold approximately 3.2% of the combined company’s common shares.
The HoldCo, devised of SilverSun’s largest revenue generating assets, will continue to operate under existing procedures and will retain its existing management to lead the company. HoldCo also plans to apply for a public listing, which will allow the company to distribute its stock dividend via an SEC Form 10 filing.
The transaction is estimated to close before the end of calendar year 2022. However, the deal still requires regulatory approval, as well as SilverSun and Rhodium shareholder approvals.
Chase Blackmon, Chairman & Chief Executive Officer of Rhodium: “We believe this strategic transaction will unlock long-term accretive value for Rhodium’s shareholders. We believe access to U.S. capital markets is paramount to sustainable, long-term success in our capital intensive industry. Rhodium represents an exciting new paradigm for bitcoin mining, with proprietary technology that creates industry-leading efficiency, while simultaneously controlling and managing operational risks. We are excited to begin our relationship with public markets and to prove our ability to execute.”
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