$Clearone(CLRO.US) surged +98% today—announcing a reverse merger with Cortigent, a subsidiary of Vivani. The old audio/video conferencing business is being completely phased out. The company will be renamed Cortigent, change its ticker to CRGT, and pivot to focus on brain-computer interfaces and neural stimulation.
Vivani will end up with about 60% ownership post-merger, while the original $Clearone(CLRO.US) shareholders will be diluted to 13-14%, along with a $10-15M equity financing round attached. This kind of reverse merger is essentially a backdoor listing for an early-stage brain-computer interface story. While it can spark short-term hype, the risks of dilution and future execution are significant.
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