The proposed Tesla-SolarCity merger has been a controversial one.
Elon Musk is pushing the Tesla-SolarCity merger through despite naysayers and lawsuits
Next up: Shareholders will vote on November 17.
Photo by VCG/VCG via Getty Images
As of earlier this week, seven Tesla stockholders have filed lawsuits against Elon Musk over the proposed acquisition of SolarCity and alleged Musk was in breach of his fiduciary duties for not disclosing the proposed merger properly. Some of these stockholders are asking the judge for an injunction to prevent the merger from going through.
But today, Tesla and SolarCity announced the companies were going ahead with the merger. The companies have set the date for their respective shareholders to vote on the $2.6 billion all-stock transaction for Nov. 17.
“If the Merger is completed, SolarCity stockholders will have the right to receive 0.110 shares of Tesla Common Stock for each share of SolarCity Common Stock issued,” an S4 the company filed with the SEC on Monday read.
Shareholders can expect a number of events leading up to that date that may affect the merger. First up, Tesla will be in court on Oct. 14 to ask that a judge consolidate the seven lawsuits brought against the company by stockholders.
Then, on Oct. 17, Tesla will be revealing an “unexpected” product. It’s possible the product may not be related to SolarCity. On Oct. 28, Tesla and SolarCity are jointly revealing a solar roof and on Nov. 1 the company will be publishing its financial plans and other information for the combined company.
In an SEC form filed on Oct. 7, Elon Musk indicated that the company “is currently planning to raise additional funds by the end of this year, including through potential equity or debt offerings, subject to market conditions and recognizing that Tesla cannot be certain that additional funds would be available to it on favorable terms or at all.”
But in a tweet on Sunday, Musk walked back that statement and said neither SolarCity nor Tesla will have to raise equity or debt in either the end of this year or in the first quarter of 2017. In a revised form, filed on Oct. 11, the company changed the language to “Tesla may raise funds in the future, including through potential equity or debt offering.”
The company did not provide an explanation as to why the language originally indicated otherwise.
This article originally appeared on Recode.net.
