Electro-Sensors, Mobile X Global agree to terminate merger pact

Electro-Sensors and privately held Mobile X Global announced that the two companies have terminated the definitive merger agreement the parties entered into on June 10, 2022. A condition to closing of the merger transaction was the consummation of an equity financing with minimum gross proceeds of $20M, which the parties anticipated would be a PIPE investment. The financing necessary to consummate the merger was pursued but is not available due to difficult conditions in the financial markets, including the markets for PIPE investments. Electro-Sensors also announced that effective following the termination of the merger agreement, the Electro-Sensors board established a board special committee consisting of Chairman Joseph Marino, President David Klenk, and Audit Committee Chair Scott Gabbard, and authorized this committee to explore and pursue business development and other strategic alternatives for Electro-Sensors.