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:
At the SPAC of Dawn There are signs that the macro environment for SPACs is gradually improving, but the Screaming Eagle team yesterday announced a non-redemption agreement for its combination with Lionsgate Studios. Such agreements are generally a lever one pulls when a SPAC expects a potentially turbulent closing. All in all, the terms for...
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...