The announcement about a stock purchase agreement this morning has come as a major trigger for the Telkonet Inc (OTCMKTS:TKOI) stock and it has managed to clock gains of 15% so far this morning.
The company announced this morning that it entered into a stock purchase agreement with the VDA Group. As per the terms of the agreement, VDA Group is going to pay as much as $5 million towards acquiring more shares of the Telkonet common stock. In addition to that, VDA Group is also going to be issued warrants so that it can pick up additional shares of the company’s common stock.
However, that is not all. Under the terms of this agreement, most of members of the Telkonet board are going to hand in their resignations and those positions are going to be taken by people designated by the VDA Group.
The partnership between the two companies is ultimately aimed at creating a strategic shift that can help both the companies in strengthening their own positions in their respective markets. Jason Tienor, the Chief Executive Officer of the company, stated that the deal represents an ‘excellent opportunity’ for Telkoney and went on to add that it will help the company in raising investments in industries which it has targeted.