M&A - STAR EQUITY HOLDINGS, INC.

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Form Type: 8-K/A

Filing Date: 2025-03-05

Corporate Action: Merger

Type: Update

Accession Number: 000070738825000025

Filing Summary: On March 3, 2025, Star Equity Holdings, Inc. entered into an Agreement and Plan of Merger with Alliance Transaction, Inc., several Merger Subsidiaries, and Alliance Drilling Tools, LLC, among others. The transaction will see Alliance Drilling Tools become a wholly owned subsidiary of Star Equity. Consideration for the acquisition includes $4,900,000 in cash and 775,000 shares of Series A Preferred Stock. The cash consideration has portions held in escrow to cover indemnification claims and working capital adjustments. Additionally, a Loan and Security Agreement was secured to provide a line of credit and term loan supporting the merger. Preliminary financial metrics for the fiscal quarter ending December 31, 2024, were also announced in a press release. This filing amends the original report from March 4, 2025, clarifying financing details and adjusting previous disclosures.

Document Link: View Document

Additional details:

Entry Date: 2025-03-03


Merger Agreement: Agreement and Plan of Merger


Cash Consideration: $4,900,000


Stock Consideration: 775,000 shares of Series A Preferred Stock


Escrow Amounts: $1,000,000 and 100,000 shares held in escrow


Loan Amount: $639,000


Line Of Credit: up to $3,000,000


Maturity Date: 2028-03-04


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