Online used-vehicle retailer Shift Technologies Inc. said Friday it closed its planned merger with CarLotz Inc., a used-vehicle consignment company.
Shareholders of both companies approved the merger agreement during a special meeting Wednesday, according to a document CarLotz filed with the U.S. Securities and Exchange Commission. The combined company will keep and trade under Shift Technologies' ticker symbol, SFT, on the Nasdaq stock exchange.
San Franciso-based Shift Technologies and Richmond, Va.-based CarLotz first announced plans to merge in August, citing complementary geographies and the chance to use each other's assets to become a more well-established omnichannel used-vehicle retailer.
"We look forward to combining the best assets from both companies to create a leading destination for used auto retail, allowing consumers to shop and buy cars seamlessly however they prefer, online or in-store," Shift Technologies CEO Jeff Clementz said in a statement.
As part of the stock-for-stock merger, CarLotz shareholders will receive 0.705 shares of Shift Technologies common stock for each share of CarLotz common stock, while Shift Technologies will assume "certain warrants and stock-based compensation awards," according to a news release.
Two executives, Jason Krikorian and Manish Patel, resigned from Shift Technologies' board of directors in connection with the closing, according to the release.
Three other individuals — Kimberly Sheehy, James Skinner and Luis Ignacio Solorzano — joined the board, according to the release.
"On behalf of the Board and entire team at Shift, we'd like to thank Jason and Manish for their endless support, advice, and mentorship over the years," Clementz said in the statement. "While we will miss their presence on the Board, we're excited to welcome three new members to help us build a winning, profitable future for Shift."
Shift Technologies Inc. shares were down 0.6 percent to $0.21 in morning trading.