CarLotz Inc (NASDAQ: LOTZ) shares are trading higher in Tuesday's after-hours session after the company reported financial results and announced a merger agreement with Shift Technologies Inc (NASDAQ: SFT).
CarLotz said second-quarter revenue increased 51% year-over-year to $76.5 million, which beat the estimate of $71.5 million, according to Benzinga Pro. The company reported a quarterly net loss of 31 cents per share, which missed the estimate for a loss of 25 cents per share.
In connection with its financial results, CarLotz announced that it entered into a definitive agreement with Shift to combine in a stock-for-stock merger. The combined company will remain listed on the Nasdaq and continue to trade under the ticker "SFT."
"Shift's technology and consumer sourcing abilities combined with our consignment and retail remarketing expertise will provide one extraordinary, omnichannel experience," said Lev Peker, CEO of CarLotz.
CarLotz shareholders are expected to receive approximately 0.692158 shares of Shift common stock for each share of CarLotz common stock held. Following the merger, Shift's equity holders will own approximately 52.9% of the combined company, and CarLotz's equity holders will own approximately 47.1%.
LOTZ Price Action: CarLotz has traded between $2.58 and 37 cents over a 52-week period.
The stock was up 26.70% in after-hours at 72 cents at press time.
Photo: gaborszoke from Pixabay.