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.
With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...
At the SPAC of Dawn As April’s sleepy month for SPAC news continues, there is only one special meeting on the docket to consider a SPAC deal approval, that being today’s vote on Pegasus Digital Mobility‘s (NYSE:PGSS) combination with equipment manufacturer Schmid. Three more SPACs are facing extension votes this week, including Pyrophyte (NYSE:PHYT), whose...
Terms Tracker for the Week Ending April 19, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Passover and school spring break starts next week, which most likely means a slowdown in SPAC filing activity. Although Churchill IX is now rumored to...
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...