Sensar and Israeli Start-Up Call Off Merger After Nasdaq Says No Way - TheStreet

Sensar and Israeli Start-Up Call Off Merger After Nasdaq Says No Way

Battered Web host, its shares down from $89 to $1.50 this year, is taking cheap data compression stock instead
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Salt Lake City-based Sensar (SCII) and Israeli start-up Net2Wireless have agreed to end their agreement to merge.

Sensar stock is 98% down from its March peak, from more than $89 to $1.50 intraday.

Nasdaq

has notified Sensar that if it merges with Net2, it will be delisted.

Net2 will give Sensar, a Web host and Internet service provider, 3 million shares at a total cost of $1.5 million. That is lower even than $1.86 a share, the exercise price of stock options allocated to its executives, among them Chairman David Rubner.

It will also and give it an option to buy another million shares at $10 each, significantly lower than $27, the price at the company's latest placement.

Sensar, in return, will also write off a $500,000 loan to Net2Wireless.

The start-up's incentive for the merger was to get a Nasdaq listing through the back door. Nasdaq is believed to have nixed the deal because of an earlier legal dispute with two major Net2 stockholders.

Net2Wireless is a specialist in data compression technology that enables faster cellular data transfer and faster Internet access