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.
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...
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...