The new investment comes from Steven Mnuchin’s private equity firm Liberty Strategic Capital, bringing the total capital raised to more than $265 million, net of expected redemptions of CFV stock, and including a $100 million combined investment led by SoftBank and Cantor Fitzgerald, among other institutional investors.
Liberty will receive 20,000,000 ordinary shares of Satellogic at $7.50 per share, as well as 5,000,000 warrants with a strike price of $10 per share and 15,000,000 warrants with a strike price of $15 per share. The 8-K has not been filed yet, so additional details are not yet available. However, the original $100 million PIPE with Softbank and Cantor Fitzgerald was struck at $10.00 per share. It’s not clear if that will be adjusted to match the $7.50 price of the new $150 million by Liberty.
Additionally, while CFV does have a Crescent Term with a $9.20 threshold for this deal, it does not meet the criteria for an adjustment to the strike price for public warrant holders. In order to qualify for a re-strike, the aggregate gross proceeds from the PIPE must represent more than 60% of the total equity proceeds available for the funding of the combination.
The SPAC recently adjourned its shareholder meeting for the third time citing it still needed additional time to continue discussions regarding further financing for the post-combination company. The special meeting will now be held next Monday, January 24, 2022, at 11:00 a.m. EST. Upon closing, Satellogic’s ordinary shares are expected to be listed on NASDAQ under the ticker symbol “SATL”.
CF V initially announced its $850 million combination with Satellogic in July. Buenos Aires-based Satellogic provides orbital imagery and analysis services with 17 satellites in operation around the Earth.
In connection with Liberty’s investment in Satellogic, Secretary Mnuchin will join Satellogic’s Board of Directors as Non-Executive Chairman.