Overland Storage Inc., the San Diego provider of data storage systems, set a special shareholders meeting for Nov. 28 to approve the company’s merger with Ontario, Canada-based Sphere 3D, but approval would appear to be a foregone conclusion.
The company said shareholders holding 65 percent of its shares voted in favor of the merger first announced in May. Overland stockholders will get 0.51 percent of Sphere 3D shares for each share of Overland. At the time the deal was announced, the aggregate price was about $81 million.
New York private equity firm Cyrus Capital, which owns about 63 percent of Overland, is providing $5 million in debt financing to help with the company’s transition.
In other news, Overland said it entered into a memorandum of understanding with shareholders who sued following the firm’s agreement to sell. There were no details on the class action settlement other than it needs court approval.
For Overland’s first quarter ended Sept. 30, revenue came in at $22.9 million, compared to $10.6 million for the like quarter of the prior fiscal year.
The net loss for the quarter was $7.3 million, compared to a net loss of $4.6 million in the first quarter of FY 2014.
Overland had cash and short term investments of $6.9 million compared to $12.1 million at the end of June.