Duluth’s Ikonics merges with cryptocurrency mining company
The boards of directors of both companies have agreed to the terms of the merger, which includes TeraWulf’s management teams taking over the management of the company. Paul Prager, current CEO and Chairman of TeraWulf, will continue to play his role in the new company. All members of Ikonics’ board will resign and be replaced by people appointed by TeraWulf, the statement said.
TeraWulf’s goal is to generate environmentally friendly bitcoin cryptocurrency on an industrial scale using 90% carbon-free energy, the statement said. Bitcoin mining is a computer process that calculates and solves complex mathematical problems to produce new bitcoin and verify its transaction information, making the network reliable and secure. Minors should verify that a transaction is accurate and not duplicated.
In the statement, Glenn Sandgrem, CEO of Ikonics, said: “The agreement will be instrumental in ensuring the long-term viability of Ikonics’ historic business, enabling it to continue to meet the needs of our customers with a secure supply of our high quality products. products in addition to ongoing employment opportunities for our workforce. “
The statement said TeraWulf has 60,000 miners on order and expects to have 50 megawatts of online mining capacity this year. The company plans to have 800 MW of mining capacity by 2025.
Shareholders of Ikonics, currently listed on NASDAQ at IKNX, will receive $ 5 in cash for each outstanding share, plus a contingent value entitlement and a share of the combined company’s common stock.
“This transaction offers ideal results for our shareholders, customers and employees,” said Sandgrem. “It offers our shareholders the opportunity to make a substantial upfront cash payment while continuing to benefit from the value of our legacy imaging business, and provides them with the opportunity to participate in the potential rise of TeraWulf at an exciting time for cryptocurrency mining space. . “
IKNX shares rose more than 90% at one point on Friday and closed on Friday with a 64% increase.
The Brodsky & Smith litigation law firm of Bala Cynwyd, Pa., Which represents shareholders across the United States, announced Friday afternoon that it was investigating potential claims against the board of directors of ‘Ikonics for possible breaches of fiduciary duty. It will review whether the board did not conduct a fair process, including the dilution of the stake in the shared company, the Brodsky & Smith statement said.
Ikonics was founded in Duluth as Chroma-Glo Inc. in 1952 and specializes in photochemistry and coated films. According to the Ikonics website, the company has 83 full-time employees, including 78 in Duluth.