Legacy Acquisition Corp. (LGC) to Adjourn Vote to Secure PIPE

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Legacy Acquisition Corp. (LGC) to Adjourn Vote to Secure PIPE

Apr 21, 2020 INTEL by Kristi Marvin

Legacy Acquisition Corp. (LGC), announced this morning that they intend to adjourn their shareholder vote to combine with Blue Impact, originally scheduled to be held this Thursday, April 23rd.  The new date will be Monday, May 18, 2020, while keeping the record date of March 20, 2020. More importantly, the reason for the adjournment was stated as, “intended to provide additional time required for Legacy to complete its potential PIPE financing with both new and current investors in advance of the Special Meeting.

For reference, last month on March 13th, Legacy announced an amendment to their Share Exchange agreement with Blue Impact, as a direct response to the “recent dislocation in the equity markets“.  The re-struck deal resulted in an adjustment to the enterprise value of approximately $33 million ($559 million, down from $592 million). Additionally, Legacy announced a proposal to amend their public warrants whereby warrant holders would receive $1.00 cash for each whole warrant if the amendment is approved. However, warrant holders will receive $1.00 in cash if the aggregate gross cash proceeds after redemptions is at least $225 million.  If it’s less than $225 million, warrant holders will receive $0.50, but they will also receive 0.055 shares of common stock per warrant.

Legacy also intends to get a $75.0 million PIPE financing at $10.00, but given today’s announcement, sounds like it’s not a done deal yet.  Keep in mind that Legacy does not have the Crescent Term.  We’ll have to wait and see if any further changes are announced ahead of the new May 18, 2020 vote date.

 

 

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