"This merger took months of planning, approvals and precise execution. We have been able to consolidate and get rid of every class of preferred stock between the two companies. Meredian Holdings Group Inc. is now the new holding company with only common stock and the merged entities improves the strength of both our companies," said Paul Pereira, executive chairman to the board of directors to both Meredian and DaniMer Scientific and CEO.
The boards of both companies carefully considered whether the merger would be in their best interests and concluded it would be. Both boards reviewed Meredian and DaniMer's history, which included their present and projected financial results under various scenarios, respective historical short and long-term strategic objectives, the opportunities in the marketplace that each is pursuing and the risks associated therewith. Other factors they considered included: current business environments, Meredian's current cash position and other strategic alternatives available to Meredian.
After reviewing, the boards believe the restructure will increase the size and market awareness of Meredian and DaniMer, which will make the combined enterprise more attractive and provide a natural vertical integration into their supply chain. Additionally, the merger will provide the companies with a broader range of services to offer clients and higher levels of efficiencies and shared resources.
Upon the merger, the shareholders from Meredian and DaniMer all hold equal shares of both companies. While the merge's intention is to maximize the value of the companies to attract strategic partners, it is also intended to give shareholders an opportunity to participate in the potential growth of the newly formed group.
In the wake of the merger, Meredian also announced the appointment of John Dowdy, as the new Chief Financial Officer. In a statement released by the company, Dowdy, who previously served in various financial and accounting positions at Yandex, an internet company that is the leading search provider in Russia, said he was "thrilled to join the Meredian team at this exciting time."
"Meredian is at the leading edge of this truly innovative industry and I am honored to help them move forward with their business development," he added.