Xos, Inc (XOS)

[WeTheMarket]

Repost from Stocktwits:

- Calculated current number of XOS shares based on initial merger PR stating that XOS management owns 3.23 million shares, representing 49.5% of all outstanding XOS shares, so XOS outstanding shares = 3.23/0.495 = 6.5 million.

- After the merger XOS will own 79% of the shares in the combined company, which can be estimated by 6.5/0.79 = 8, or 8 million shares.

- SOLO shares = 8 - 6.5 = 1.5 million

- There are currently 119 outstanding SOLO shares, so exchange ratio = 1.5/119 = 0.01261

- Assuming a combined company worth of $100 million, XOS shares would be worth 100/8=12, or $12 a share at time of merger, SOLO shares at time of merger would be worth 0.21x$100=$21 million/119 million oustanding shares = $0.18

The share information in the initial merger announcement PR, was given only to show the likelihood of the merger being approved. A 2/3 majority of votes from both shareholders is needed. XOS management, owning 50% of outstanding shares, pretty much guarantees approval. However, SOLO management only owns 2-3% of outstanding shares, so not a guarantee. Since only voted shares count, it should increase the likelihood that the merger is approved by shareholders of both companies.