Enchem America-U.S. TGHL Merger Effective Date Postponed to Dec. 7

Reflecting SEC and Nasdaq review timelines
Plans to raise at least $200 million after merger completion
Funds to support Georgia facility operations and North American business expansion

Enchem said on Oct. 8 that it would postpone the merger effective date for its subsidiary Enchem America and Nasdaq-listed U.S. company The GrowHub Limited (TGHL) from Oct. 8 to Dec. 7.

A view of Enchem's Georgia plant. Enchem

The schedule change reflects the difficulty of determining when related procedures will be completed, including the U.S. Securities and Exchange Commission's (SEC) review of the registration statement and Nasdaq's review and approval of the new listing.

On July 29, TGHL was granted an exception period by Nasdaq allowing it to maintain its listing until Dec. 2. Taking this into account, Enchem set Dec. 7 as the merger effective date and said the merger schedule could be moved forward if the review is completed early.

TGHL submitted a merger-related registration statement (Form F-1) to the SEC on Sept. 30 and is currently proceeding with follow-up steps, including Nasdaq's review of the new listing.

The merger will be structured as a reverse triangular merger, with Enchem America as the surviving company. Under the agreement, Enchem America was valued at a minimum of $400 million. After the merger is completed, Enchem plans to raise at least $200 million in stages in the U.S. capital markets.

The funds will be used to purchase raw materials and secure working capital, operate its production facilities in Georgia, serve North American customers, and expand its local business.

An Enchem representative said, "We revised the merger effective date to reflect the review schedule and conditions. We will complete the remaining procedures without disruption and provide transparent updates to shareholders and the market as key dates become more concrete."

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