CF Finance Acquisition Corp., in a very surprising move, re-filed their prospectus this afternoon changing their warrant included in their unit from a full warrant to three-quarters of a full warrant. It is highly unusual to amend terms to a LESS favorable position for investors rather than the other way around.
Granted, CF Finance’s original terms were extremely investor friendly given the strength of the team, but…this has been a challenging SPAC market as of late. To amend terms that are “less” friendly to investors one day before expected pricing is unprecedented. However, it does indicate a strong book and it brings their SPAC more in line with the Chardan Healthcare’s terms.
Of course, there may be some investors that will not like this move, but it shows that Cantor is confident enough in demand to pull it off. However, we’ll get a clearer picture of that demand on day-one of trading.
An amended summary of terms is provided below.