SUNation Energy (SUNE) and Suniva agreed on a reverse merger deal, with the latter to merge with a SUNation subsidiary, according to a Monday statement.

Based on the agreed terms, Suniva stockholders will own about 98.2% of the combined company and SUNation shareholders will own the remaining 1.8% stake, with an implied value of $2.26 per share.

The transaction represents about a 100% premium over SUNation's most recent closing price, the company said.

The boards of both companies approved the merger, which is expected to close in H2, according to the statement. The merged company will operate as Suniva and take over SUNation's Nasdaq listing.

Shares of SUNation Energy were up 77% premarket Monday.

Price: 2.03, Change: +0.89, Percent Change: +77.01