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Wed. 10 Aug 2022, 3:57pm ET Benzinga Earnings, M&A, News, Penny Stocks, Movers, Trading Ideas

CarLotz Inc (NASDAQ:LOTZ) shares are trading higher Wednesday after the company announced a merger agreement with Shift Technologies Inc (NASDAQ:SFT). CarLotz also reported financial results Tuesday after the close.

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%.

Q2 Earnings: 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. 

See Also: CAE Shares Plunge On Mixed Q1 Performance

LOTZ Price Action: CarLotz has traded between $2.58 and 37 cents over a 52-week period.

The stock was up 18.2% at 67 cents at time of publication.

Photo: David from Flickr.