This afternoon, CM Seven Star Acquisition Corp. (CMSS), released additional information regarding their recent shareholder vote to approve their business combination with Kaixin Auto Group (“Kaixin”) and Renren (NYSE: RENN).
Of particular interest, an aggregate of 20,403,667 ordinary shares were redeemed. The press release also states that the total number of public shares is now 232,626, of which 160,000 shares are held by CMSS’s sponsor, Shareholder Value Fund (“SVF”). That means that only 72,626 shares are “held by third parties”. However, the press release did not disclose exactly how many shareholders are holding those 72,626 shares, but keep in mind that in order to maintain their listing requirements with Nasdaq, CMSS needs 300 round lot shareholders.
However, CMSS also had a Right included in its unit so those Rights shares (when delivered to accounts) will be eligible to trade and will increase the float. CMSS closed today at $4.99 on volume of 501,850 shares traded, which implies Rights holders have already received those shares. And are selling..
You can read the press release here.