Last night, we had another new IPO filing with GreenVision Acquisition Corp., a $50 million life sciences/healthcare focused SPAC that will be looking for companies primarily in China, but in Asia and North America as well. Green Vision will be led by Zhigeng (David) Fu, as Chairman and CEO. Mr. Fu is currently Of Counsel to Global Law Office, Shanghai, and a legal advisor to H&H Sports Protection USA Inc.
This SPAC is a little unusual in that a legal professional is the lead team member. However, Mr. Fu has extensive experience with Chinese companies having spent more than 25 years working on M&A transactions, private equity investment, foreign direct investment, and restructuring of foreign-invested enterprises in China. Additionally, Mr. Fu has won a number of awards such as Leading M&A Lawyer in China by Chambers Asia Pacific, a Leading PRC Lawyer in Healthcare by Chambers Asia Pacific. So clearly he’s been around the block a few times and knows all the ins and outs of structuring a transaction in China and Asia.
Mr. Fu will be joined by Qi (Karl) Ye, as CFO and Director. Mr. Ye brings the investment experience having founded Mill River Investment Co, a private Chinese equity/venture capital-focused investment fund, and East Rock Management Co, a private Chinese secondary market investment fund.
Looking at this SPAC’s structure, it differs slightly from the typical smaller, China-focused SPACs. In particular, the unit will be comprised of one share, one full Warrant and one Right (1/10). Usually the Warrant is listed as one Warrant for 1/2 Share, rather than a full Warrant. Additionally, GreenVision has a Warrant call trigger of $18.00, rather than the typical $16.50 . Lastly, this SPAC has the Crescent Term, which has become de rigeur as of late, however, the threshold has been set at $9.50, rather than $9.20. All told, these differences mean that Greenvision has added some extra sugar to make these terms a little more sweet. However, it’s interesting we’re still seeing Rights included in Units given the issues we’ve seen post-closing of combination with many of the SPACs that have them. The solution of over-funding the trust to 101% rather than including a Right is still not an option that teams are using.
In summary, given the terms and the small size, this SPAC will sell. However, given the review process that the Nasdaq has been giving many of the smaller, China-focused IPOs, this one might price more towards the later half of November.
Summary of terms below:
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