GigCapital, Inc. (GIG), announced this afternoon that it will be extending its Tender Offer to purchase up to 14,873,256 of its outstanding Rights until one minute past 11:59 p.m., New York City time, on November 22, 2019, unless further extended or terminated. The tender offer was previously scheduled to expire today, at one minute past 11:59 p.m., New York City time. However, as of today, only 1,826,233 of the 14,873,256 Rights outstanding (which includes the 498,256 Rights included in the Founders Units) have been tendered.
The purchase price for the Rights remains $0.99 per Right, but without any additional incentive (or higher price) it’s unlikely a significant number of additional Rights holders will tender through the new deadline. However, keep in mind, Gig has rounded up multiple Rights arrangements via Greenhaven, Kepos, and Yakira, whereby they agreed not to sell the shares underlying the Rights they own, as well as any additional Rights they were able to purchase. We don’t know yet how many Rights each of them were able to buy, but the amounts they previously held were as follows:
- Greenhaven: 5,482,694 Rights
- Kepos: 579,950 Rights
- Yakira: 419,299 Rights
That totals 6,481,943 Rights, so at a maximum, there were really only 8,391,313 Rights (of the 14,873,256) available for tendering. And since we already know that 1,826,233 have tendered up to this point, there are (at a maximum) approximately 6,565,080 Rights left that can tender up to the new deadline of November 22nd, or 656,508 shares if converted. That’s still a chunky number of Rights Shares, so it appears Gig is hoping to reduce that number even further (assuming Greenhaven, Kepos and Yakira weren’t able to purchase any additional Rights).
Lastly, the extended Tender Offer deadline of November 22, indicates a shareholder vote to complete their combination will not happen before then, but keep in mind that Gig’s deadline expires on December 6th, so a vote date should come quite quickly after the tender offer closes.