Shares of SBE Inc. (Nasdaq: SBEI) skyrocketed up the charts yesterday after news of its merger with Neonode was included in a press release issued by Neonode. Shares closed up $5.09 (179 percent) at $7.94 per share on volume of 2,038,668.SBEI has filed with the Securities and Exchange Commission (SEC), and will soon mail to all its stockholders, its definitive proxy materials relating to the previously announced merger of SBEI and Neonode, an increase in the number of shares authorized for issuance under SBEI’s 2006 Equity Incentive Plan and an amendment and restatement of SBEI’s Amended and Restated Certificate of Incorporation to (i) reverse stock split of either 1-for-2 or 1-for-3, with the specific ratio to be determined by SBEI’s board of directors; (ii) increase the authorized shares of common stock from 25 million to 40 million and (iii) change SBEI’s name from SBE Inc. to Neonode Inc.
A special meeting of SBEI stockholders to vote on the proposed merger agreement and the other proposals set forth in the definitive proxy statement has been scheduled for August 10, 2007.
SBEI stockholders of record as of July 3, 2007 will be entitled to vote at the special meeting. The failure to vote or abstaining from voting will have the same effect as a vote against the merger agreement and other proposals.
If the merger is approved, upon closing of the transaction, each outstanding share of Neonode common stock will be converted into the right to receive 3.5319 shares of SBEI common stock. For the merger to occur, holders of a majority of the outstanding shares of SBEI common stock entitled to vote must approve and adopt the merger agreement.
Neonode was founded in 2001 and is a Swedish developer of mobile devices. The mobile devices are based on patented technologies which enable a unique user experience. After shareholder approval of the merger with SBEI, the combined company’s headquarters will be in Stockholm, Sweden, where Neonode’s current corporate headquarters is located.
SBEI designs and provides IP-based storage networking solutions for an extensive range of business critical applications, including back-up and disaster recovery. SBEI delivers a portfolio of scalable, standards-based software products designed to enable optimal performance and rapid deployment across a wide range of next-generation storage systems.
