Rongcheng Group Enters Merger Agreement with GalaxyEdge, Valued at Approximately $350M
Rongcheng Group announced that it has entered into an agreement and plan of merger with GalaxyEdge Acquisition Corporation, Rongcheng Global and GLED Merger Sub, pursuant to which merger sub will merge with and into the company, with the company surviving as a wholly owned subsidiary of the purchaser, and GalaxyEdge will merge with and into the purchaser, with the purchaser surviving as the publicly traded company. Rongcheng is an integrated waste sorting service provider delivering end-to-end "consultation-implementation-training" solutions to enterprises and a variety of customers, including consultation, implementation support, and training solutions. Pursuant to the agreement, GalaxyEdge will merge with and into purchaser, its wholly owned subsidiary, which purchaser surviving the merger and becoming the publicly listed company, and its wholly owned subsidiary, Merger Sub, will merge with and into Rongcheng, with Rongcheng being the surviving company with the end result being purchaser as the publicly listed company, in each case subject to the terms and conditions of the agreement. The proposed transaction implies a pre-money equity value of approximately $350M for the company. Additional information regarding transaction proceeds, sources and uses of funds, and pro forma ownership will be included in the registration statement and other transaction-related materials to be filed in connection with the proposed transaction. The parties may also cooperate in connection with any additional financing arrangements sought in connection with the proposed transaction. The proposed transaction, which has been approved by the boards of directors of both GalaxyEdge and Rongcheng, is subject to regulatory approvals, the approvals by the shareholders of GalaxyEdge and Rongcheng, respectively, and the satisfaction of certain other customary closing conditions, including, among others, a registration statement, of which the proxy statement/prospectus forms a part, being declared effective by the SEC and the approval by the stock exchange of the listing application of the combined company.
