Group halts $62M plan to buy Marlborough tech firm, following Nasdaq delisting
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ConnectM Technology Solutions is located at 2 Mount Royal Ave. in Marlborough.
After the Nasdaq-delisted ConnectM Technology Solutions failed to timely file regulatory financial reports, the group that had previously offered to buy the Marlborough-based clean energy firm has put its acquisition offer on hold.
The decision to halt purchase discussions comes after ConnectM received a $62-million buyout offer in April from three of its largest institutional investors: SriSid LLC, Arumilli LLC, and Win-Light Global Co. Ltd., all of whom had begun their investing relationships in the firm in 2020.
But in June, ConnectM announced the buyout group had decided to suspend both the buyout proposal and acquisition conversations after the company had delayed filing its annual financial report and its quarterly financial report with the U.S. Securities and Exchange Commission, according to a June 2 press release from ConnectM. These reports are required for all publicly traded companies.
Still, the buyout group remains supportive of ConnectM and its management team, according to the press release. The group is awaiting the results of ConnectM’s four-month recovery plan, which the group said are critical, and will reengage with acquisition discussions after the company is relisted with the Nasdaq stock exchange.
The group’s original buyout offer came just one month before ConnectM was delisted from Nasdaq following months of back and forth regarding the company’s failure to meet the required $50-million market value for listed securities.
ConnectM’s recovery plan was announced in a May 13 press release and included cutting stockholder deficit in half by $10 million, filing necessary SEC financial reports, completing integrations of the company’s acquisition of Cambridge Energy Resources, reaching $2.5 million in stock equity, and beginning Nasdaq relisting preparations.
ConnectM did not immediately reply to WBJ’s request for comment.
In April, ConnectM reported its third quarter report of 2024 contained material errors, and therefore could not be relied upon, according to a Sept. 30 SEC filing. The company stated it would file an amended report with updated financials as soon as those became available, but no such report has yet to be filed.
The firm’s most recent press release asserts ConnectM intends to file its 2024 annual report and its first quarter 2025 quarterly report in June.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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