The Unlikely Merger Of A Defunct Sports League And A Truck Stop Power Company
This is one of the strangest reverse takeovers in recent memory.
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Subscribe for free to get more stories like this directly to your inboxThey say politics makes strange bedfellows, but sometimes business does too. That was apparently the case when the United States Basketball League, which officially went under about 15 years ago, joined forces with an Oregon company known for providing electricity for the nation’s truck stops.
Inside the “reverse merger”
Although the defunct USBL hasn’t been an active league since 2008, it gained notoriety more than a decade earlier by offering public stock. That strategy continued even after the league went belly up. In the years since, the shares reached a peak value of $1 in October 2021.
More than a year after that, the USBL confirmed its intentions to merge with Shorepower in what is commonly known as a reverse merger or a reverse takeover. This simply refers to any agreement whereby a smaller company acquires a larger, publicly traded one.
Technically, that’s what occurred here, but on the surface, there’s no apparent reason for the energy company to obtain a failed basketball league.
Shorepower’s electrifying plans
In case you’re not familiar with the Oregon-based company’s mission, CEO Jeff Kim explained that the goal is to provide truck drivers with a safer and more efficient way to catch up on their rest.
He said: “You go to a truck stop, the majority of them are running the engine simply to keep comfortable [and] they consume about a gallon of diesel fuel per hour.”
The resulting exhaust can be unhealthy and bad for the environment, not to mention expensive for drivers who have to replenish the fuel they use while idle.
With the proceeds expected to come in from its merger with the USBL, Shorepower plans to upgrade and expand electric chargers and tech that will allow drivers to stay comfortable without constantly burning diesel.
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