VerifyMe (VRME) shares climbed sharply Monday following news that the company plans to merge with Open World, creating an interesting mashup of brand protection technology and Web3 infrastructure.

When Brand Protection Meets Web3

Here's the setup: VerifyMe specializes in precision logistics and brand protection technologies, while Open World helps launch Web3 ecosystem projects. The two companies have entered into a letter of intent for a strategic merger, and once complete, the combined operation will trade publicly under a fresh ticker symbol.

The ownership split tells you who's really driving this deal. Open World shareholders will own roughly 90% of the merged company, with VerifyMe stockholders holding about 10%. Open World will also control board appointments and replacements for the combined entity.

There's a potential sweetener for existing VerifyMe shareholders: the company expects to pay a special one-time cash dividend before the merger closes, distributing any cash on its balance sheet above $1 million.

"Today marks a major milestone for Open World," said Matt Shaw, CEO of Open World, who will become CEO and chairman of the combined company. "We've been the token launch, innovation and go-to-market partner for Tier-1 Web3 protocols representing over $65 billion in on-chain value, and we're now extending that playbook into enterprise applications with real-world impact."

The Stock's Reaction

VRME Price Action: Shares jumped 59.29% to $1.07 at the time of publication on Wednesday, according to market data.