SG 77 Inc entered into an agreement to acquire World Health Energy Holdings, Inc. (OTCPK:WHEN) in a reverse merger transaction for $38.7 million on January 27, 2020. Under the terms of the Merger Agreement, SG 77 Inc will be the surving corporation. As consideration for the merger, World Health Energy Holdings issued 3.87 million Series B Convertible Preferred Stock to SG.

Each share of the Series B Preferred Shares will automatically convert into 100,000 shares of World Health Energy common stock for an aggregate amount of 387 billion shares of World Health Energy common stock. The transaction is subject to regulatory approvals and third party approval. The closing of the transaction is subject to certain conditions.

The Board of Directors of SG 77 and World Health Energy have approved the deal. The transaction is expected to be closed on February 29, 2020. The combined company anticipates executing on its strategy involving significant growth in revenue and long-term profitability.

David Aboudi of Aboudi legal acted as legal advisor for World Health Energy Holdings.