Bison Capital Acquisition Corp. (“BCAC”), announced this morning that they have entered into a backstop agreement with Yinglin Mark Xu, a majority shareholder of Xynomic, to purchase up to $7,500,001 of Ordinary Shares in the open market or in other privately negotiated transactions. This is to ensure that there is at least $7.5 million of net tangible assets at closing.
The purchases will take place between now and up to the third trading day prior to their vote in order to allow the transactions to settle. Bison is current scheduled to vote on their combination with Xynomic on May 13th, which puts the third trading day prior to the vote at May 8th. Additionally, Bison has agreed to register the re-sale of the Backstop Shares.
As of April 5th, Bison had $8,492,157 held in trust, so a backstop of $7.5 million is nearly all of it. Plus, the estimated cash per share in trust is currently approximately $10.60, so this could potentially get very expensive for Mr. Xu. He’s not obligated to purchase shares above $10.15, but if shareholders can redeem at $10.60, why would they sell for anything lower?
Bison and Mr. Xu have approximately a week until May 8th to shore up this closing, so it will be interesting to see how BCAC trades. Let’s see what happens.
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...