Alberton Acquisition Corporation, re-filed their prospectus this morning and added a warrant to its unit. Previously, Alberton’s unit structure consisted of just one ordinary share and one right to receive 1/10 of one share. However, it would appear that was not received well and hence, the change. Furthermore, the warrant trigger for management to be able to call back the warrants is $16.00, not the usual $18.00, which further sweetens the terms.
The rest of Alberton’s terms remain the same, including the two 3-month time extensions in addition to their 12 months to find an acquisition. As a reminder, if Alberton runs out of time and needs to extend, they must contribute $1 million into trust at each 3-month extension.
Given that Alberton re-filed this morning, pricing will most likely be pushed back. However, as we’ve seen with both Churchill and ChaSerg, which were able to re-file and price the same day, the SEC has gotten quite comfortable with SPACs, so a quick turn-around is not out of the question.
Revised 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 + 1 Warrant
- 1 Right for 1/10 of one Ordinary Share
- 1 Warrant for 1/2 of one Ordinary Share
- Warrant trigger: > $16.00
- 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.
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