dMY Technology Group, Inc. III (NYSE:DMYI) pre-announced its light redemptions this morning in a press release ahead of its shareholder meeting tomorrow to vote on its combination with quantum computing firm IonQ.
The press release reported that dMY expects the business combination to be approved at tomorrow’s meeting. Although the company didn’t disclose the exact redemption numbers, it stated that IonQ anticipates to receive in excess of approximately $600 million of gross proceeds from the deal, reflecting redemptions in the single-digit percentile if we account for transaction expenses. DMYI is up 7.08% to $12.10 on the day thus far following the positive headlines.
dMY III originally brought about $300 million into the deal from its trust alongside a $350 million PIPE at $10 per share.
The PIPE drew investment from a mix of institutional and strategic investors, including Fidelity Management & Research Company, Breakthrough Energy Ventures, Hyundai Motor Company and Kia Corporation, Silver Lake, MSD Partners, and Marc Benioff’s TIME Ventures.
The business combination is expected to close on Thursday, September 30, and the company will change its name to IonQ, Inc. The combined company’s shares of common stock and warrants are expected to trade on the New York Stock Exchange beginning on Friday, October 1 under the ticker symbols “IONQ” and “IONQ.WS,” respectively.
dMY III initially inked its $1.37 billion deal with IonQ on March 8. IonQ is developing quantum computing hardware to be used in a number of different applications including machine-learning, financial markets-monitoring and high-tech research.
Just last week, IonQ announced a partnership with GE Research to explore the impact of quantum computing on risk management across multiple sectors including in the field of government and finance.
- Morgan Stanley & Co. LLC is serving as the exclusive financial advisor to IonQ.
- Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to dMY III.
- Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are also acting as co-lead placement agents on the PIPE.
- Needham & Company also acted as placement agent on the PIPE.
- Cooley LLP is representing IonQ as legal counsel.
- Cleary Gottlieb Steen & Hamilton LLP is representing dMY III as legal counsel.