Ring Founder Taking Over Latch (Latch / HDW Merger) [Deal Complete]
Latch had a disastrous 2022 but is now aiming for a sharp rebound backed by Ring's founder Jamie Siminoff. Latch is merging with his newest company and making him CEO.
Latch's stock dropped 90%+ after laying off more than 50% of its employees, accounting irregularities, lower-than-expected revenue, Lee Odess short stint running sales, delays in submitting SEC filings, threatened Nasdaq delisting, and other problems.
In this note, we examine the latest deal, which involves Latch merging with a company owned by Siminoff, factors that led to the arrangement, and Latch's prospects going forward.
Executive *******
**** ** * ***** *** *** Latch ** *** ******* *** ***** real ********** ****. *** **** ** that ********, ******** ******* ******'* **** famous ******** ******** *********, *** ** what ** *** **** **** *** Latch. *** ******* ** **** ***** is ***** **** **** ******* ***** and *********** ****** **** *** ** a ******* *** ******** ***** ****-******** strengths *** ********* ** ********** ******** not ******* **** ******* ****** * collapsed ********.
Honest ***'* **** ***********
***** ********* ** *** **, ******** ** ** ********* "****** ***'* ****", * ******* ******* ** ******** which ************ ******* *********** ******* ********* such ** ************ *** *** ******* to ******* **** *********** ******* **********. According ********** ******* ***** **** **********'* ********* of *****, *** *** ******* ** **** 2022 *** ****** ** ******** ***** he *** ***** ** ********* ** Ring:
**** *****,****'* *** ******* ********* ********** **** ******** **** ** was ******* ** ** "***** ********" and "**** ***** ** ********* **** more ***** ********," ****** ********* *** now *** ****. ******** **** **** Ring ********* ** ******** **** *****, per*** *****, ***** ****** **** **** *** announced.
Significant **** ** *****
***** ** *********** ****** ****** **** of *** ****** ************** *** ********'* startup. *****'* ****** *** *** **** a ****** ~$*** ******* ****** *** deal, **** **% **** **** ** SPACed. ***** ** ********* ********'* **** than ***-****-*** ******* ** ******** *** 29 ******* ** *** *** ****** shares (***** **** ***** $** ******* on *****'* ****** *****), *** $** million ** ********* ********** *****.
** ** * *********** ***** ** pay *** ** ******** ***** * turnaround *****.
Combination ** ***
***** *** *** ******** **** ***** services ******* ** **********, **** **** partially *******. ***** ****** ******** ****** control *******-******** **********, ***** ** ******** ** be* ***** ** ~***,*** ********* (*******, since ***** *** *** ***** *** financial ******* ** * **** *** exact ****** ** *** ******). ** contrast, *** ******* ** ******* * platform *** *********** ******** ******* ** do **** *** **********.
********* ** ****** *********** ** ********* for *** ********* **** *** ******* ** ********* ********* **** **:
****** **** **** ** * ****-****** startup **** * **** *******: ** enable ************ ******* **********.
*****, ****-**** *********** ******** ******* ***'* have * ******** **** ******* **** to ****** ***** *******, ******** ***** work *** *** **** ******. *** solutions **** ***** ***** ****** *** between *** ******* *** ***** *********, taking * *********** ******* ** ***** rate, ** ****** ***** ******** ** the **** ********.
** **** ** ****** ****. ** are ******** * ******** **** **** enable ******* ** ***** ** **** they ** ****, ***** **** ******** communities ** *********** ******** ***** ************, rather **** ****** ** ******* **** through **********.
***'* ******* ** *** *** ****, as ***** ** ** ****** *** or *** ***** ****** ******** *** it.
*** **** **** **** ***** ******** dog *******, *******, *** ************ **** benefit **** ****** ****** ** ***** units *** ***** **** ** ******* HDW ******** ** *** *******:
**** ******* ********* **** ** ****** control ** ** ***** **** *********** and ***********. ***** ******* ******* ***** the ******* ** ******** ******** ******* Latch ********** ****** ***** ** ******* ****** this ********.
*** ********** **** ** **** ***** has ******* *% ** **** ** the ***** ********* ***** ** *** United ****** ** ******* *** ******* Latch **** *** ******* *** **** majority ** *** ******.
SEC ******* ** **** ***** - "******"
***** *** ***** ******* ***** **** an ***********, *** ********* ****** ********* ** ** ** "Agreement *** **** ** ******". ******** *** *****, *** ****** is ********** *** *** ****** ** be ******** ** *** ***** ***** increases (*** *********, *** ***** ** still ***** $* *****):
********, ******** ****** ** **** ****** $15 ******* *** *** ***** ***** increasing ** $*:
Interim *** *******
*****'* ******* *** ****** *** ** January, ******** ** ** ******* *** who ***** *** *** *********** ** restructuring ********* **** *********** ********. ******** plans ** ****** *** ***** **** year.
No ********** *** * ****
***** *** *** ***** ********** *** a **** ***, **** ********** ***** that **** **** **** **** ****** filing ** ****, ****** ** ******* not ***** *** **, **, *** Q4 ****.
****** ****, ***** *** **********, *** given *** ******* **** *** **** year, ** ***** ****** ********* ******* to ** ******* *** **** ***** initial ******** *** *** *** ** unknown ******** ***** **** **** **** case ** * ****** ******* *** being **** ** **** ****** ********** so ****.
*******
***** ***** ***** *** *********** ****, it *** *** * ****** ***** to ****, ****** ** ****'* *******, that *** ****** **** ****** ****** to *** *******'* ******* ** **** close ** *** ****-*** ********* *******. However, ******** *** ***** * ******* turnaround **** **** **** *** ******* to ****** * ********** ******* *** combine ** **** *** *** *******.
*** ******** ** **** * ****** buy * *** ******** ****** ** Latch *** **** *** *** * triple **** ******* **** **** ** the **** ****. **** *** ***** go ** **** ******* ** ** at *** ****. * ***** *** the ******* ****** *** ** **** about ***** *** ***** ****** *** because ******** ** ***** **** *** more.
*******, ** **** *****, * ******* the ***** ***** **** **** ** way **** **** ******* *** **'* already ********** **** ****:
*** ** *********** ** **** ***** that ********'* *********** **** ****** ***** the ***** ***** ** ************* (****:**** ********* ** ***** ******* ******).
** **** ** *********** ** *** how **** ****** *** ** / messaging *** **** ** ** ***** for *** *, **** **** *** taken **** ********* ** ********'* ********** yet.
**, *** ** ****** * ***** Tank ******* ****** **** *** *****?
*** *******, *** ******, ******** ******* Ring, **** *******, * ****** *** on ***** ****:
**** ********, ******** *** ******** ** guest *****:
******'* ****** **** ** ***** ** well, **** **** **** ***** (***** you ******* ******** ***** ** ***** Tank ** **** - "** *** want *** ******* ******* *** * one ******* ***** *** * ******* with ******** *********** ******** *** ****** vasts ****** ** ***** ********...")
**** *******, ******** *** **** ** resolve *** *******'* ******** ****** **** the ******, *** **** ******* ** Ring **** ********** ******* *** **** expand *** ******* (*******/******/******) **** ******* home *** ******** ********.
*** ********* ****** ***** ** *********, right? ***** ** *** ***, *** a ******* ****** *****, *** ******** problems ****** **** ********* ********* ******* (***** ******* ***** ******** *************), *** *** ******** **-****** ******* is *** ********** (-**% ***** ******** ***** ****** *******).
** **, **** ** ** ******** different *****/********* **. *****. **** **** most ***** *** ******* *** *** model ****** ***********. ***** **** ***** on *********** (*** ******* ****-*******). ** I ***** ** ******** ****?
***, ***** ** *** *** **** complex **** ** *** ***** ** its ******* ******** *** *** ********** of *** ****. ***** **** ***** use ********* *****, ***** ** ********* on *********** ***** **** **********. ****, with ****, ** *** ********** ***** to *** ******** ****** ******, ******* Latch ***** * **** ** **** established *********** ********* ******** ****** ********* who ** *** *** ****** **** Latch
******* ** ******** ***** ***** ***** now ******* ****, ** ******** ** Shaq's ********** *** *********** *** ****. Below ** * **** **** ********** making *** ** *********** ***** *******:
*************, **** * *** **** *****, Ring ******* *** ***** ** ********** from $** ** $**.
****, ****/****'* ***** ***** - ** contract, **** *****, ******* ****, **** not **** ** **** ***** *** Latch *** ******** ***** ** **** people **. **** *****, ***** *** already ******* ** ***** ** ***** open, ** ******* ******** *** **** into ****.
****** *** **** ** $*, ***** volatile ******:
******** ** *** *** *** *** is ******* ********** ***** ********* *********** lowering ******:***** ********* *** ********** ************ *******
“*’* ******* ** *****'* ************ ** these ***, ********** ******* **** ****** make ** ****** *** ********* ** deliver *** **** ******** ********** ** being * *****-******* ********,” **** ***** Siminoff, *****’* ******** ***.
****'* * **** ** *** ** quite ********** *********** **** **** ***** just * **** ***** *** ******** announcement *** ***** ** ** *** yet *********** ***.
***** *** **** **** ***** *** initial **** *** *** **** ***** $1:
**** *****, ** ** ********* ** be **** ********** **** *** *** investor's *********.
******: *** **** *** ****** ***** -*****://***.***.***/********/*****/****/*******/******************/*****-********************.***
**** *** *********** *** *********, **** notably **** ***** **** $* ******* in **** **** ********'* ******* ***, which ***** *** ********* ********* ** the ******** ******* ****:
**** *** ******* ** *** ***********, Latch ******** *** ** ***’* ******, including *** ************ ******** *** $*.* million ** ****. ************, ************* ** HDW **** ******* ****** *****.
****,** ********** *-********* **** *** ****** **** ** transferred ** * *****:
*** ****** *** ***-************ ***** **** 3, **** (*** “********** ******”), ******* to ******* *********** ********.
*******, ** ** ********* ** *** original ****, *** ****** **** ** released / *********** ** / ** the ***** ***** **** **.
***** *** ***** ** ** **** than **% ***** *** **** *** announced, ** *** *** ********:
** *** **** ** **** ******** will ****** ***** ****. ***** * think **'* * ***** ******* *** Latch, *** *** ******* *** *** startup *** ***** ** **** **** Latch *** ******* ***** *** *********** challenges **** **** ****** ***** *** distract ***.
*** **** **** **** * *** see ** **** ******** ***** **** Latch's ******** ******* / ** *** turns **** ******. ** **** ********** attract ******** *** *****, ***** *** success ** **** **** *** ***** market ***** *** *****'* ******* ******* category.
***,*****'* ******* ******* *** ****:
**** ***** ***** ***** ** ****** still *** * *********** ***** ** Latch *** ******** ** ****** ** drive ** *** ***** *****.
*** ***** ** ** **% ** far ***** *** ***** ***** $*: