Friday night, dMY Technology Holdings, Inc. (DMYT.U) filed for a $200 million SPAC IPO focused on the the mobile application (“app”) ecosystem and consumer internet companies. dMYT will be led by Niccolo de Masi, as Chief Executive Officer, and Harry You, as Chairman.
Mr. de Masi brings the mobile app experience in spades having held leadership positions in five mobile companies: Glu Mobile, Inc. (Nasdaq: GLUU), Essential Products, Inc., Xura, Inc. (formerly Nasdaq: MESG), Hands-On Mobile and Monstermob Group PLC (formerly LSE: MOB), and was the chief executive officer of Glu and Monstermob before the age of 30. However, the line item in Mr. de Masi’s bio that will probably garner the most attention is that he launched “Kim Kardashian: Hollywood” (a celebrity app game) in June of 2014.
As for Harry You, you might remember him from GTY Technology Holdings (GTYH), which closed on their combination in February of last year. GTY had acquired six different entities to create a SaaS company that offers a cloud-based suite of solutions for primarily North American state and local governments. Mr. You, who was President and CFO of the GTYH SPAC, has also served as the combined company’s Vice Chairman since May of 2019. So, Mr. You brings a wealth of SPAC experience and if you (You?) can herd six cats and still get a deal over the finish line, you’ve earned your bones.
Interestingly, there are currently no other team or board members listed. Just Mr. de Masi and Mr. You. Presumably, others will be added at a later date, but it would have been helpful to see the full team at the initial filing.
As far as this SPAC’s structure, it’s pretty run of the mill for a SPAC of this size and caliber – 100% in trust, 24 months, 1/2 warrant, Crescent Term with a $9.20 threshold. However, they have also thrown in the warrant call for shares term at $10.00. If you’re not familiar with that term, it means that dMY can still call the warrants for cash or cashless exercise at a trigger of $18.00, but they also have the ability to call the warrants for shares starting at $10.00. If you look in the “Description of Securities” section of the prospectus, you’ll see a table showing the number of shares a warrant holder receives upon exercise, based on the share price at that time and how much time to warrant expiration.
All told, the terms seem appropriate. This isn’t a first time team, but the 1/2 warrant is a good fit and frankly, I can’t ever see Goldman underwriting a SPAC with less than a 1/2 warrant. Look for this one to price third or fourth week of February, depending on when they can flesh out their board.
Goldman Sachs and UBS are joint book-running managers of the offering.
Winston & Strawn LLP & Davis Polk & Ropes & Gray LLP are issuer’s counsel and underwriter’s counsel, respectively.
WithumSmith+Brown, PC is auditor.