UPDATED: Brooge’s (BROG) $0.25 Quarterly Dividend & Anti-Dilution for Warrant Holders
by Kristi Marvin on 2019-11-20 at 10:00am

UPDATED:

CONFIRMED – The warrant strike will, in fact, be adjusted down $0.50 per year.  Additionally, the reason for the dividend is because new investors who recently purchased BROG shares ahead of their upcoming vote (most likely responsible for the recent volume in the share), indicated they will not redeem if the company announces a $1.00 yearly dividend. Furthermore, those new investors would like to see 24 months worth of dividend cash set aside in escrow.


A quick update on today’s announcement from Brooge Holdings Ltd./Twelve Seas (BROG), that they intend to pay a $0.25 per share quarterly dividend.  It’s become standard for more recent SPACs to include anti-dilution provisions for warrant holders in the event of a dividend issuance.  However, the Twelve Seas prospectus does not explicitly have an anti-dilution provision.  Instead, it says it “may” adjust, but it doesn’t appear that the company is “obligated” to do so.  However, the “unconfirmed” word is, Brooge will adjust the warrant strike $0.50 per year.  Still waiting on confirmation, but that will certainly make the dividend announcement more palatable than no adjustment for warrant holders.  Especially since the dividend is intended to be a sweetener for “new” sector investors, not SPAC warrant holders.  However, making sure warrant holders are happy certainly helps when heading to a completion vote.  Stay tuned for further details.

Recent Posts
by Nicholas Alan Clayton on 2024-03-26 at 1:52pm

News and Rumors SpaceNews: Boeing (NYSE:BA) has sued Virgin Galactic (NASDAQ:SPCE) alleging the space tourism venture refused to pay $25 million it owed for design work and violated Boeing’s intellectual property rights. Virgin Galactic combined with Social Capital Hedosophia in 2019. Bloomberg: The most popular options contract for Trump Media (NASDAQ:DJT) predicts it to plunge...

by Nicholas Alan Clayton on 2024-03-26 at 11:51am

APx (NASDAQ:APXI) has entered into a definitive agreement to combine with precision medicine firms OmnigenicsAI and MultiplAI at an enterprise value $340 million. Once combined, these companies will offer DNA tests to consumers linked to predictive insights on their nutritional and genomic health. The combined company is expected to trade on the Nasdaq under the...

by Nicholas Alan Clayton on 2024-03-26 at 7:45am

At the SPAC of Dawn With the pricing of IB Acquisition Corp. (NASDAQ:IBACU), March now officially has two SPAC IPOs in the books but we”ll have to see if three price to match February’s numbers. The move brings 2024’s total count to six SPAC IPOs, which continues to be a slower pace than 2023, which turned...

by Kristi Marvin on 2024-03-25 at 6:37pm

IB Acquisition Corp. (NASDAQ:IBACU) announced the pricing of its $100 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “IBACU”, Tuesday, March 26, 2024. The new SPAC will have a broad search focus and will not be limited to a particular geographic region or industry, but believe there...

by Kristi Marvin on 2024-03-25 at 3:24pm

They say timing is everything and at the end of a week punctuated by two successful traditional IPOs from Astera and Reddit, the sponsor team that announced the CCIV/Lucid deal at the absolute peak of the capital markets insanity that was Q1-2021 dropped their latest new SPAC – Churchill Capital Corp. IX. Is this a...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved