audiohighway.com Merged into Seattle Electronics Maker
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Privately-held Seattle-based Shannon Technologies Inc. Thursday inked a deal to acquire ailing music destination audiohighway.com in an all-stock transaction.
Financial terms were not disclosed, but audiohighway.com said that Shannon Technologies shareholders will own about 90 percent of its issued and outstanding stock at the merger's close.
The proposed merger is still subject to shareholder approval, but audiohighway.com said it expects to complete the deal by the end of June 2001. The company also said it will file a plan of reorganization with the U.S. Bankruptcy Court.
audiohighway.com filed for Chapter 11 protection on Jan. 10, 2001, after pruning its staff to a nine-member skeleton crew in November. It was delisted from the NASDAQ SmallCap Market on March 25, 2001.
audiohighway.com said the merged company will apply for re-listing on that market upon the merger's completion. To aid in that goal, the two companies signed a letter of intent with an unnamed investment banking firm to provide additional working capital.
Shannon Technologies is a provider of advanced electronics manufacturing and distribution services. Its primary customers are electronic manufacturers in the telecommunications and networking, consumer electronics and computer industries.