Code Rebel Corp (CDRB) Stock More Than Doubles On Merger News

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Shares of Code Rebel Corp (NASDAQ:CDRB) are up big today after the company released several announcements after the close of the market on Thursday. Most significant of them was the pursuance of a merger with Aegis Identity Software. After the market closed, the company announced its entry into a non-binding letter of intent to engage in a merger with Aegis.

“It is contemplated that Aegis Identity’s shareholders will own 60% of the issued and outstanding shares of Code Rebel Corp (NASDAQ:CDRB), determined on a fully diluted basis, immediately following the merger. Code Rebel has also provided Aegis Identity with an unsecured loan of $500,000, which is evidenced by a promissory note of Aegis Identity that bears interest at the rate of 9% per annum, compounded annually,” The company explained. “The loan will be discharged in the proposed merger. If the merger is not consummated, then the loan is due on June 30, 2016 or upon the occurrence of certain other specified events.”

Additionally, Code Rebel Corporation (“Code Rebel”) granted Mr. Reid Dabney, Chief Financial Officer and Secretary of Code Rebel, an incentive stock option to purchase 400,627 shares of common stock of Code Rebel (“Optioned Shares”) at an initial exercise price per share of $2.44, which was deemed to be equal to or greater than the fair market value of a share of common stock as of the close of market on the date of the grant. The incentive stock option was granted pursuant to a Stock Option Agreement (“Stock Option Agreement”) and in accordance with Code Rebel’s 2014 Equity Incentive Award Plan (the “Plan”). Under the Stock Option Agreement, (i) 25% of the Optioned Shares vest on the date of grant, and (ii) the remaining 75% of the Optioned Shares vest in equal monthly installments as of the last calendar day of each month over a period of 18 vesting periods, with the first vesting date being January 31, 2016, subject to acceleration upon certain events including a Change in Control, disability (each, as defined by the Plan) or death.

The stock is up 101.38% or $2.2 following the news, hitting $4.37 per share. About 2.22 million shares traded hands or up 26005.36% from the average. cdrb has declined 94.41% since June 11, 2015 and is currently downtrending. It has underperformed the S&P500 by 86.92%.

Code Rebel Corporation develops, markets and licenses its interactive remote application terminal services (TS) solution. The company has a market cap of $30.65 million. The Company’s iRAPP allows users of Windows personal computers (PCs) and Apple Inc. computers (Macs) to access programs on their PCs and Macs through a single device. It currently has negative earnings. The Firm markets and licenses multiple software products, which are grouped into three product families: client-side products, terminal server products and access products.

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