Very late Friday night (and technically Saturday morning, since it was after midnight), TKK Symphony Acquisition Corp. (TKKS), announced the closing of their business combination with Glory Star New Media Group Limited. In connection with the Business Combination, TKK changed its name to “Glory Star New Media Group Holdings Limited” and the company expects that, effective February 19, 2020, its ordinary shares and warrants will begin trading under the ticker symbols “GSMG” and “GSMGW,” respectively, on the Nasdaq Capital Market.
TENDER OFFER RESULTS
TKK also announced the expiration and final results of its tender offer to purchase up to 25,000,000 of its ordinary shares, at the final price of approximately $10.31 per share. The Tender Offer, which expired at 5:00 p.m., New York City time, on February 13, 2020, had a total of 24,986,159 ordinary shares validly tendered and not withdrawn. At TKK’s last announced extension on February 12th, 24,986,491 shares had been tendered, so TKK was only able to move the needle an additional 332 shares between February 12th and 13th.
Additionally, by closing their combination, this means that TKKS will not be extending four months by issuing an additional 1/2 warrant to shareholders. It seems the choice the company had to make was, close now with less money in trust that they would have preferred or, increase the warrant overhang by issuing an additional 1/2 warrant and try and spend the next four months trying to reverse the current tender offer results and/or find additional financing. The former seems like the better option. There was no guarantee TKKS could have found additional financing on favorable terms and reversing the current tender offer results would be the equivalent of pushing a very big boulder up a mountain.
The good news is, we get to move TKKS into the “completed” column. However, keep in mind that TKKS still has 2.5 million rights shares that will be delivered into accounts shortly, so any “low float” situations should be short-lived.
ADVISORS
- EarlyBirdCapital, Inc. acted as exclusive financial and capital markets advisor to TKK Symphony.
- Ellenoff Grossman & Schole LLP and Goodwin Procter LLP acted as TKK’s legal advisors.
- Lewis Brisbois Bisgaard & Smith LLP and the Grandall Law Firm acted as the legal advisors to Glory Star.
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