The Warrant Exchange Consideration is now $2.00.
GTY Technology Holdings Inc. (“GTY”), announced this afternoon that it is increasing the cash the consideration for which each public warrant would be automatically exchanged to $2.00, up from $1.35.
As a refresher, GTY expects to hold a special meeting of its warrant holders (to be held immediately prior to the special meeting of GTY’s shareholders for the business combination) to approve an amendment to the warrant agreement. If the proposal is approved by a yes vote of at least 50% of the outstanding public warrants, each whole public warrant will be automatically exchanged for what was originally $1.35 in cash and now amended to $2.00. Furthermore, the original proposal stated the private placement warrants that were purchased by GTY’s sponsor at IPO for $1.50, would be exchanged for $0.75 in cash. These sponsor private placement warrants will remain exchangeable for $0.75 cash. No change.
Per today’s press release, GTY has 18,400,000 public warrants and 8,693,334 private placement warrants outstanding. If approved, the warrant agreement amendment would provide for aggregate cash consideration of $36,800,000 to holders of GTY’s public warrants and $6,520,001 to holders of GTY’s private placement warrants. The cash amount to be exchanged per public warrant represents a 55% premium to the last reported closing price of the public warrants on October 19, 2018.
A 55% premium is a pretty big jump in price, but this is what happens when you get on the road and receive feedback from investors. Clearly $1.35 wasn’t enough. Plus, GTY is holding it’s shareholder vote to extend its completion deadline on October 31st. GTY will be asking at that vote for an additional six months to complete by extending from Nov. 1st to May 1st, 2019. Although, trying to close six different companies must be like trying to herd cats so even May 1st might be a little tight. However, investors aren’t going to want to give them any more time on top of that without additional funds contributed to the trust.
Check back on October 31st for the results of the extension vote.
Despite a week of general pull-backs in the market, fintech firm Ibotta (NYSE:IBTA) nonetheless took the dive and had a good week debuting via a traditional IPO in the choppy waters. The company, which provides app-based consumer cashback discounts on purchases, priced its IPO at $88, above its proposed range of $76 to $84, and...
At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...
AGBA (NASDAQ:AGBA) stock is up over +90% this morning following a +211% premarket spike on news it has signed a definitive agreement to combine with social streaming video platform Triller. AGBA, the company itself, was formed by the $555 million combination between a SPAC of the same name and TAG Companies, a financial services firm...
At the SPAC of Dawn Since closing its combination with DHC last month, AI customer engagement firm BEN (NASDAQ:BNAI) has rolled out new partnerships with call center and healthcare clients. And, while it faces a fair bit of competition in the chatbot realm, several high-profile institutions have demonstrated that creating one that provides useful services...
Blue Ocean (NASDAQ:BOCN) provided significantly more texture today in the presentation for its $275 million combination with Asian digital media group TNL Mediagene, which it expects to hit profitability in the second half of the year despite a slight shakeup in financing for the transaction. The first big update in the first investor deck is...