Alberton Acquisition Corporation, filed for a $100 million SPAC IPO this morning with a broad focus that will not be limited by industry or geography. Alberton is being led by Bin (Ben) Wang, as Chairman and CEO. Mr. Wang is currently a Managing Director of Eon Capital International Ltd, a Hong Kong-incorporated corporate advisory service company, where he has advised on numerous M&A and project financing transactions.
Alberton’s SPAC structure is similar to Atlantic Acquisition Corp. (another Chardan SPAC) in that its unit does not include a warrant. It’s a straight one ordinary share plus one right for 1/10 of an ordinary share. Additionally, Alberton will only have 12 months to find an acquisition. However, they do have the ability to get two 3-month extensions by contributing $1 million into trust at each extension.
The use of a flat amount of $1 million to extend is a little different than previous structures that have stated they will contribute on a per-share basis to trust. For instance, Tottenham and Greenland have 12 months as well, but for their extensions they need to contribute $0.10 per share. However, for a $100 million SPAC, a contribution of $1 million is the same amount, i.e., equivalent to $0.10 per share.
Additionally, the lack of a warrant included in the unit did not seem to hinder Atlantic Acquisition’s IPO, which was the first SPAC to leave them out (if memory serves). ATAC recently completed their SPAC in twelve months and the share is currently trading at $14.95. So it will be interesting to see if a unit, with only a right, catches on in future SPACs.
Summary of terms below.
Albertson Acquisition Corporation Summary of Terms:
- Focus: General / Broad
- Size: $100 million
- 100.0% held in trust ($10.00 per share)
- $10.00 Unit comprised of one Ordinary Share + 1 Right for 1/10 of one Ordinary Share
- No Warrants included in this Unit
- 12 months to complete an acquisition + two 3-month extensions (18 months total)
- $1 million to be deposited in trust at each extension
- At-risk Capital: $3.0 million (300,000 Units at $10.00)
- Underwriter fees: 2.0% + 3.5% deferred
Chardan is sole book-running manager.
White and Williams LLP and Loeb & Loeb LLP are Issuer’s Counsel and Underwriter’s Counsel, respectively.