06:17 PM EDT, 04/01/2024 (MT Newswires) -- Kidpik ( PIK ) agreed to merge with Nina Footwear in an all-stock transaction approved by their boards.

Nina Footwear stockholders will be issued Kidpik ( PIK ) common shares and will own 80% of the stock upon closing, the companies said Monday in a statement.

The combined company will operate as Nina Holdings and trade under the NINA stock symbol. According to the terms of the transaction, Kidpik ( PIK ) will acquire Nina Footwear through a reverse subsidiary merger that is intended to be a tax-free reorganization.

The companies expect to complete the transaction, subject to customary closing conditions, in Q3.

Kidpik ( PIK ) is controlled by Ezra Dabah, the chief executive officer, chairman and majority stockholder with 67%, according to the statement. He is also the CEO of Nina Footwear. Dabah and his children own 79% of Nina Footwear, and Dabah and his extended family own 100% of Nina Footwear, the statement said.

Dabah, his children and wife are expected to continue to control 77% of the combined company's voting shares following the closing of the merger, the statement said.

Kidpik ( PIK ) shares soared 71% in after-hours activity.

Price: 7.44, Change: +3.09, Percent Change: +71.03