VeriChip (CHIP) Completes Acquisition of Steel Vault

November 10, 2009 10:58 AM EST

VeriChip Corporation (NASDAQ: CHIP) and Steel Vault Corporation (OTCBB: SVUL) announced that VeriChip has completed its acquisition of Steel Vault to provide unique health and security identification tools to protect consumers and businesses. In conjunction with the merger, VeriChip has changed its name to PositiveID.

Under terms of the agreement and plan of reorganization, Steel Vault stockholders will receive 0.5 shares of VeriChip common stock for every share of Steel Vault common stock held. The outstanding stock options and warrants of Steel Vault will also be converted at the same ratio. No fractional shares of VeriChip common stock will be issued in connection with the proposed merger. Instead, VeriChip will make a cash payment to each Steel Vault stockholder who would otherwise receive a fractional share. This merger is a stock-for-stock transaction, and is expected to be a tax free exchange.

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