RMG Acquisition announced that 99.8% of its shareholders approved its merger with Romeo Systems at an extraordinary meeting on Dec. 28. Shares gained 5.2% in pre-market trading on Tuesday.
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The deal, which was announced by RMG (RMG) on Oct. 5, is expected to close by December 29. The combined company will be renamed Romeo Power and will trade on the NYSE under the ticker symbol “RMO”.
Romeo Power is an energy technology company focused on designing and manufacturing lithium-ion battery modules and packs for commercial electric vehicles. RMG had $394 million in its trust account prior to the merger, including $160 million raised from private placements.
On Dec. 10, BTIG analyst Gregory Lewis initiated coverage on RMG stock with a Buy rating and a price target of $40 (25.2% upside potential).
According to Lewis, the planned merger with Romeo Power puts the company in a “strong position” to benefit from the ongoing electrification of the global truck market. (See RMG stock analysis on TipRanks)
Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 unanimous Buys.
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