Sono Group N.V. (NASDAQ:SSM) stock jumped Tuesday after the company unveiled plans to combine with Sports One and enter the professional sports ownership market.
Sports One To Take Control
Sono Group and Sports One signed a nonbinding letter of intent Monday.
Under the proposed deal, Sports One shareholders would own a supermajority of the combined company. Sports One’s management team would lead the business. In addition, Sono Group expects to adopt the Sports One name.
The company would acquire and hold minority stakes in NFL, NBA, MLB and NHL franchises. It also plans to operate a sports intelligence platform. That business would provide athlete data, social media value scores and sponsorship valuations.
However, any franchise investment would remain subject to league and team approval.
Investors Buy 19.9% Stake
Alongside the agreement, a group of investors bought 283,500 Sono Group shares. The investment represents 19.9% of the company’s outstanding ordinary shares.
Investors paid the market price without a discount or warrant coverage. They also agreed to a 180-day lockup. Sono Group will use the proceeds for working capital and general corporate purposes.
Deal Remains Preliminary
The transaction still requires due diligence, final agreements, regulatory clearance and shareholder approval. Therefore, the companies cannot guarantee that they will complete the deal.
Sono Group currently operates as a digital asset treasury company. Its strategy focuses on Bitcoin holdings and covered-call income.
SSM Price Action: Sono Group shares were up 48.88% at $3.99 at the time of publication on Tuesday, according to Benzinga Pro data.
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