EnerJex Resources Inc (NYSE:ENRJ) announced that at a special meeting today, its stockholders approved proposals to effect the previously announced merger between EnerJex and AgEagle Aerial Systems. However, skeptical investors voted with their feet after news broke, sending shares plunging over 30%.
The proposed merger and financing, which was announced in October, 2017, will provide significant working capital for AgEagle, an agriculture focused drone and aerial imagery analytics company. The merger is expected to close in the next week at which time the Company’s name will change to AgEagle Aerial Systems Inc. and the ticker symbol will also change to “UAVS.”
“On behalf of the EnerJex Board of Directors, I would like to thank our stockholders for their support for the merger and throughout our business transformation,” said Louis Schott, CEO of EnerJex. “AgEagle products are designed to improve centuries old farming methodologies through the use of GPS technology, high-resolution aerial imagery, computer learning and robotics. The precision agriculture industry offers a rich opportunity to develop a high-growth technology business that provides farmers with impactful insights using computer driven analysis of high resolution aerial imagery.”
Nine proposals were presented to the stockholders of EnerJex at the special meeting held on March 21, 2018, all of which were approved. The final voting results of each proposal will be disclosed in a Current Report on Form 8-K, to be filed with the SEC. In addition to Proposal 1, the issuance of merger shares, the shareholders also voted favorably for Proposal’s 2-9, including: To amend the Series A Preferred Stock; To Change the Name of the Company; To Approve the Omnibus Stock Plan; To Approve the Issuance of Shares to Current Employees and Directors; To Approve Conversion of the Series C Preferred Stock; To Approve Conversion of the Series A Preferred Stock; To Approve the Issuance of Stock for the Private Placement; and to Adjourn the Shareholder Meeting if necessary.
The Company plans to conduct a 25 for 1 reverse stock split, which was approved by shareholders on April 27, 2017, prior to the closing of the merger.