Oblong Announces Letter of Intent to Merge with Dwellwell Analytics
Transaction Will Enable Combined Company to Expand its AI Platform Revolutionizing Property Management
DENVER--(BUSINESS WIRE)--June 04, 2024--
Oblong, Inc. (Nasdaq: OBLG) ("Oblong"), the award-winning maker of multi-stream collaboration solutions, announced today that it has signed a non-binding letter of intent (the "Letter of Intent") with Dwellwell Analytics ("Dwellwell"), to acquire 100% of the outstanding equity interests of Dwellwell (the "Merger"). Pursuant to the terms of the Letter of Intent, Dwellwell securityholders would, after giving effect to the proposed Merger, own 67% of the equity of the combined company and equity holders of Oblong would own 33% of the equity of the combined company, on a fully diluted basis.
The contemplated business combination would give Oblong investors a unique opportunity to be part of Dwellwell's journey. The Dwellwell solution combines patented and patent-pending, multi-sensing technology and artificial intelligence to take the guesswork out of maintenance for both institutional and individual owners of residential property. Dwellwell's unique approach uses remote sensing to monitor an entire residential building instead of individual systems or appliances.
Ambient Inference$(TM)$, a unique form of artificial intelligence allows Dwellwell's SaaS platform to identify maintenance issues as soon as they arise, and ultimately predict issues before they occur. Dwellwell enables customers, including owners of multi-family buildings, single-family homes, and short-term rentals, to address repairs proactively, significantly reducing costs across multiple operational areas.
"After undertaking a comprehensive process to explore and evaluate a range of strategic options, our Board and Management team believe this transaction with Dwellwell is the best strategic alternative for Oblong and represents an opportunity to create substantial value for our shareholders," said Pete Holst, Oblong CEO. "This business combination, if completed, will result in Oblong investors having an equity stake in a company that is focused on developing and commercializing AI-centered technology and solutions that could transform how real estate is monitored and maintained under the leadership of a world-class team with decades of domain expertise spanning machine learning/AI, software systems, applied physics, advanced sensors, user-centered design, and building maintenance."
"Dwellwell has created disruptive patented IoT technologies to address a critical need, the deployment of comprehensive, smarter maintenance solutions for residential real estate, an asset class worth over $40T in the U.S. alone," says Dan Simpkins, CEO, Dwellwell Analytics. "Combining with Oblong's team will enable us to scale our company and more rapidly meet the needs of the real estate community. This merger will provide resources that Dwellwell needs to achieve its long-term objective, to be the leading provider of smart maintenance products."
Both parties are currently completing their respective due diligence reviews and are continuing to negotiate the terms of a Definitive Merger Agreement. Accordingly, Oblong cannot provide any assurance that it and Dwellwell will successfully negotiate and enter into a Definitive Merger Agreement or that it will effect the Merger with Dwellwell or, even if it is able to consummate such a Merger, that the terms of any such Merger will be on the terms set forth in the Letter of Intent. The Merger would be subject to board and shareholder approval, regulatory approval, each party satisfying a net cash closing condition and other customary closing conditions.
Important Information About the Proposed Transaction and Where to Find It
This press release relates to a proposed transaction between Oblong, Inc., a Delaware corporation ("Oblong"), and Dwellwell Analytics, Inc., a Delaware corporation ("Dwellwell") (the "proposed transaction"). If the parties enter into a definitive merger agreement, Oblong intends to file a registration statement on Form S-4 (the "Form S-4") with the U.S. Securities and Exchange Commission ("SEC"), which will include a preliminary prospectus and proxy statement of Oblong in connection with the proposed transaction, referred to as a proxy statement/prospectus. When and if available, a proxy statement/prospectus will be sent to all Oblong stockholders as of a record date to be established for voting on the transaction and to the stockholders of Dwellwell. Oblong also will file other documents regarding the proposed transaction with the SEC.
Before making any voting decision, investors and security holders are urged to read the registration statement, the proxy statement/prospectus, and amendments thereto, and the definitive proxy statement/prospectus in connection with Oblong's solicitation of proxies for its stockholders' meeting to be held to approve the transaction, and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as and if they become available because they will contain important information about Oblong, Dwellwell and the proposed transaction.
Investors and securityholders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by Oblong through the website maintained by the SEC at www.sec.gov.
The documents filed by Oblong with the SEC may also be obtained free of charge at Oblong's website at www.oblong.com or upon written request to: Oblong, 110 16th Street, Suite 1400-1024, Denver, CO 80202.
NEITHER THE SEC NOR ANY STATE SECURITIES REGULATORY AGENCY HAS APPROVED OR DISAPPROVED THE TRANSACTIONS DESCRIBED IN THIS PRESS RELEASE, PASSED UPON THE MERITS OR FAIRNESS OF THE TRANSACTION OR RELATED TRANSACTIONS OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS PRESS RELEASE. ANY REPRESENTATION TO THE CONTRARY CONSTITUTES A CRIMINAL OFFENSE.
Forward looking and cautionary statements
This press release contains forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong's actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements regarding the terms of the proposed transaction, the entry into a definitive merger agreement, the filing of a registration statement in connection with the proposed transaction, the benefits of the proposed transaction, the products under development by Dwellwell and the markets in which it plans to operate, the advantages of Dwellwell's technology, Dwellwell's competitive positioning, and Dwellwell's growth plans and strategies. The forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements, which include, but are not limited to:
-- the risk that the proposed transaction may not be completed in a timely
manner or at all, which may adversely affect the price of Oblong's
securities;
-- the failure to satisfy the conditions to the consummation of the
proposed transaction, including the adoption of the merger agreement by
the shareholders of Oblong;
-- the occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement;
-- the effect of the announcement or pendency of the proposed transaction
on Oblong's and Dwellwell's business relationships, performance, and
business generally;
-- risks that the proposed transaction disrupts current plans of Oblong
and Dwellwell and potential difficulties in Oblong's and Dwellwell's
employee retention as a result of the proposed transaction;
-- the outcome of any legal proceedings that may be instituted against
Dwellwell or against Oblong related to the merger agreement or the
proposed transaction;
-- failure to realize the anticipated benefits of the proposed
transaction;
-- the inability to meet and maintain the listing of Oblong's securities
(or the securities of the post-combination company) on Nasdaq;
-- the risk that the price of Oblong's securities (or the securities of
the post-combination company) may be volatile due to a variety of factors,
including changes in the competitive industries in which Oblong and
Dwellwell operate, variations in performance across competitors, changes
in laws, regulations, technologies that may impose additional costs and
compliance burdens on Oblong and Dwellwell's operations, global supply
chain disruptions and shortages, national security tensions, and
macro-economic and social environments affecting Oblong and Dwellwell's
business and changes in the combined capital structure;
-- the inability to implement business plans, forecasts, and other
expectations after the completion of the proposed transaction, and
identify and realize additional opportunities;
-- the risk that Dwellwell has a limited operating history;
-- the risk that the post-combination company may never achieve or sustain
profitability;
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