CarLotz Inc. (NASDAQ: LOTZ), a Richmond used car company that’s struggled amid a tight market, said Tuesday it has agreed to combine with San Francisco’s Shift Technologies Inc. (NASDAQ: SFT) in an all-stock merger.
Shift also works in used car sales, but through e-commerce on the West Coast. CarLotz started as a local startup and sells used vehicles on a consignment as opposed to a commission model. It primarily operates in the Mid-Atlantic after scaling back its brick-and-mortar operations in June in what it billed at the time as a cash-saving move.
CarLotz shareholders are expected to receive about 0.69 shares of Shift common stock for each CarLotz share they own, the companies said. The combined company will be headquartered in San Francisco and trade on the Nasdaq under Shift’s ticker symbol, “SFT.” The companies said they expect to have a combined cash position of $125 million after the deal closes, likely in the fourth quarter. Shift’s equity holders are expected to…
Read the full story from the Washington Business Journal.
