But there will be NO additional contribution to trust…
GigCapital, Inc. (GIG) filed their Definitive Proxy this afternoon and while there was always the hope that they would drop in an additional contribution to trust while it was still a Preliminary Statement, that hope is gone now. There will be no additional contribution for shareholders that do not redeem at the upcoming extension vote. Gig’s vote to extend their deadline from June 12th to December 12th, 2019, will take place on June 5th, with a record date of April 26th.
As a reminder, Gig had 15 months to complete a business combination, but extended an additional 3-months to June 12th, back in March. At that time, Gig contributed an additional $0.10 per share to trust for shareholders that did not redeem, per their Charter (they didn’t have a choice). However, at the upcoming June extension, Gig will now be asking for a 6-month extension. And no contribution.
These votes are getting very strategic and if we read the tea leaves as to why Gig is not offering additional funds this time around, it points to an intentional removal of SPAC shareholders via redemption. Why, you ask, would they want to do that? Perhaps to replace those investors with new PIPE investors. Seems like the most logical conclusion. SPAC Investors are generally not too keen on giving teams six additional months without a sweetener, so a near total redemption of the trust followed by a replacement via a PIPE is the most likely answer.
We still have five weeks to go until the vote, so things can still change. Stay tuned for any further updates.
Blueport (NASDAQ:BPACU) has filed for a $69 million SPAC that would bring another first-time sponsor team to market. The new SPAC is offering investors a right to a 1/6 share in each unit and it will have 15 months to complete a business combination. It is underwritten by Alliance Global Partners and will not be...
At the SPAC of Dawn The markets appear to poised to continue a rosy week with futures in the green in anticipation of PCE inflation readings. Space is one of the sectors feeling the most love recently and launch services firm Rocket Lab (NASDAQ:RKLB) is keeping up the momentum, scheduling two launches within 48 hours...
FIGX Acquisition Corp. (NASDAQ:FIGXU) announced the pricing of its $131 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “FIGXU”, Friday, June 27, 2025. The new SPAC aims to seek out a financial services target with a particular focus on wealth and asset managers with the potential to...
Yorkville Acquisition Corp. (NASDAQ:YORKU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “YORKU”, Friday, June 27, 2025. The new SPAC plans to combine with a target company in the telecom, media or technology sectors. Yorkville Acquisition Corp.’s management team is led...
At the SPAC of Dawn As pressure on Fed Chairman Jerome Powell increases, the market is set to ingest a raft of new indicators today as well as hear from Cleveland Fed President Beth Hammack on the potential interest rate path. Today will also see June’s 8th SPAC IPO as Cantor Equity Partners III Inc....