DWI Corp. said Tuesday that under terms of its previously announced $10.5-million merger with OTEC Corp., shareholders of OTEC Corp. will receive five shares of DWI stock for each share of the San Francisco-based a real estate company.
Irvine-based DWI said it expects to complete a definitive agreement on the acquisition before Christmas. The sale is subject to OTEC shareholder approval. About 60% of OTEC common stock is held by management.
DWI said it expects to issue about 15 million new shares to complete the acquisition and plans to sell the properties owned by OTEC when it completes the purchase of the company. DWI currently has about 8.9 million common shares outstanding.
In over-the-counter market trading Wednesday, DWI closed at 72 cents, down 3 cents; OTEC's closing bid was unchanged at $2.50.
DWI designs and develops computers, telescopes, luggage and a variety of other products, including the living quarters for the Spacelab project being developed by McDonnell Douglas Co.