SeqLL Inc. (NASDAQ: SQL) experienced a notable upswing in its after-hours trading activity this past Friday. The SeqLL stock exhibited a substantial 14.56% surge, reaching a closing price of $12.12 at the conclusion of the weekend session. This surge was a direct response to a strategic maneuver, effectively counterbalancing the preceding 4.51% decline endured by SQL stock during the regular trading session, culminating at $10.58.
In the previous week, SeqLL (SQL) publicized a pivotal decision taken by its Board of Directors, involving the cancellation of both a special cash dividend and a stock dividend. Initially, SeqLL had contemplated disbursing a cash dividend to its common stockholders.
This proposition was intricately tied to its planned acquisition of Lyneer Investments LLC ("Lyneer") and the divestment of its current business operations, subject to certain conditions. SQL had previously established September 26, 2023, as the record date for the dividends, yet neither the Board had officially declared the dividends nor had the precise dividend amounts been determined.
The decision to cancel these dividends was primarily prompted by the formidable logistical challenges associated with their execution, which, in the Board's assessment, posed a substantial risk to the successful completion of the Company's planned acquisition. In lieu of distributing the cash and stock dividends, SeqLL is now poised to extend a settlement offer to all stockholders as of the aforementioned Record Date within 90 days following the completion of its Lyneer acquisition.
This revised strategy aims to address any potential claims arising from the failure to disburse said dividends, by providing affected stockholders with the equivalent cash and common stock shares they would have received had the dividends been formally declared and executed.
In the month of May, SeqLL formally engaged in a conclusive merger accord with Lyneer Investments, the ultimate overseeing entity of Lyneer Staffing Solutions, LLC, Atlantic Acquisition Corp., and associated entities. As per this agreement, Lyneer is destined to transform into an entirely possessed subsidiary of SeqLL.
In adherence to the stipulations delineated in the Merger Agreement, SeqLL will disburse the sum of $60,000,000 in currency to the stakeholders of Lyneer. Furthermore, SeqLL will grant an aggregate of 159,866,898 shares of its common stock to the stakeholders of Lyneer and Atlantic in exchange for the entirety of Lyneer's membership interests.