ACE Convergence Acquisition Corp. (NASDAQ:ACEV) announced that it has secured up to $100 million in committed equity financing for its combination with electronics manufacturer Tempo Automation.
The new money comes from an affiliate of Cantor Fitzgerald, and will purchase up to an aggregate of $100 million of Tempo’s common stock from time to time post-merger. This facility allows Tempo the ability to raise additional capital in the future.
Earlier this year, ACE Convergence secured $200 million in convertible notes financing, replacing $54 million that was originally destined for the post-combination company in the form of a senior debt facility. The convertible notes are made up of $175 million from Oaktree Capital Management and $25 million from an ACE Convergence affiliate.
Although the notes are due in 2025 and hold a 13% interest rate per annum, to be paid semi-annually in a split of 8% cash and 5% in-kind, it helped cover the transaction’s $320 million minimum cash condition, removing any doubt of the deal’s completion.
The SPAC’s share price has been slowly grinding its way up and closed today at $10.04. Upon closing of the deal, the combined entity is expected to be renamed “Tempo Automation Holdings, Inc.” and shares of its common stock are expected to trade on the Nasdaq under the ticker symbol “TMPO”.
ACE Convergence initially announced its $936 million combination with Tempo on October 14. San Francisco-based Tempo provides outsourced digital manufacturing services for electronics and other circuitry applications.
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...
With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...