Late this afternoon, Social Capital Hedosophia Acquisition Corp. (IPOA), released the details of their shareholder vote to approve their business combination with Virgin Galactic and the results were, for the most part, as expected. This combination was approved by shareholders, and the results are highlighted below, however, the language around the closing feels a little squishy. To wit, found in the 8-K: “Though not guaranteed, SCH expects to close the Business Combination on October 25, 2019, subject to customary closing conditions, and for the VGH, Inc. units, common stock and warrants to begin publicly trading on the New York Stock Exchange under the new symbols SPCE.U, SPCE and SPCE WS, respectively on October 28, 2019.” Typically, it is worded as, “It is expected that….”, so, “Though not guaranteed” feels a bit atypical.
Nonetheless, Social Capital Hedosophia did not release the details of their redemptions (if any), i.e., how many, at what price, etc., so we’ll have to wait for that information, but it seems very unlikely that this transaction would not close, regardless of language. This train has already left the station and been to a few stops already.
Post-expected closing on Friday, October 25th, it will be interesting to see what sort of IR/PR push is in store and where the share price trades given the recent gyrations in price. However, now that the shareholder vote is over and done with, this company is cleared for take off (pun intended), i.e., going forward is when we really get to see what more traditional investors actually think of this company.
Once additional information is published regarding redemptions and the new float count, an update will be published. In the meantime, you can find the vote results HERE and a summary below.