ChargePoint is an infrastructure provider of EV charging stations. Back in 2018, the company committed to installing 2.5 million locations. However, the markets did not pay much attention to its vow to grow the network by about fiftyfold in the next seven years (now five years). After the successful SPAC listing, though, the cash added to its balance sheet could help it achieve that goal.
Before its SPAC reverse merger with ChargePoint, Switchback Energy traded at just $10. However, SBE stock soared to the $40 range within weeks in late November.
Right now SBE is down almost 10%, because of a very stupid thing. Retail investors forgot or were not aware that they needed to vote from their brokerage accounts in order for merger to happen, meaning deal is taking longer.
SBE stock is a SPAC, or a blank-check company, looking to take ChargePoint public via a merger. ChargePoint is a highly touted EV charging play, and is widely expected to do well once publicly traded. The trick is, in order for SBE stock to succeed, shareholders must approve the ChargePoint SPAC merger.
A special shareholder meeting was convened, and then promptly adjourned, due to a lack of quorum to approve the required proposals for this business combination.
Right now, SBE stock has votes from about 45% of its outstanding shares either directly or via proxy. Unfortunately, a majority is needed in order for the merger to be approved. Because a significant percentage of Switchback shares are held by individual investors who may otherwise never vote during such meetings, this highlights the shift we’re seeing today in how companies are going to need to deal with investors moving forward.
Switchback’s large retail investor base is neither good nor bad for the company. These investors are clearly eager about the long-term growth potential of ChargePoint’s business model. However, the intricacies of voting may need to be learned by a younger, more inexperienced group of investors.
Where Does SBE Stock Go From Here?
The next special meeting is scheduled for Feb. 25. Accordingly, the company is now doing everything in its power to get shareholders out to vote later this month. Switchback and ChargePoint are currently undertaking a media campaign to encourage shareholders to come out and vote.
It’s in the best interest of retail investors to approve this deal. SBE will be targeting all the investors, they just need 5% more voters, thus, I think this deal will go through in short order.
Once The merger is completed it should be attracting more investors and the price of the stock will be most likely benefiting from that.
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