Virgin Group II (VGII) Adds $50M Backstop to Grove Collective Deal
by Nicholas Alan Clayton on 2022-04-04 at 9:49am

Virgin Group II (NYSE:VGII) announced it has added a $50 million backstop to its combination with sustainable home goods-maker Grove Collective.

Grove has also agreed to waive its minimum cash condition in exchange for the new agreements and Virgin Group II’s promote shares are no longer to be subject to earn-out terms.

The new money is to come in two tranches with Corvina Holdings investing $27.5 million into a PIPE effectively at $10 per share at at close. It has further agreed to purchase $22.5 million in shares but may redeem these proportionate to the amount that the deal’s closing cash exceeds that amount.

Corvina also stands to receive additional shares proportionate to the amount of shares it ultimately holds at close and the amount that the VWAP of the combined company in the 10 days following closes drags below $10. It will receive new warrants at close in an amount relative to a number of outstanding shares in the combined company at close at terms that are detailed in full on Virgin Group II’s profile page.

Virgin Group II traded up about 0.5% on the news of the changes, but like many SPACs that listed in the spring of 2021, the last time it traded at or above $10 was the day of its IPO and these new backstops should provide additional security as it works towards completing the transaction.

The parties initially announced their $1.5 billion combination on December 8. San Francisco-based Grove makes sustainable home and beauty products sold primarily though its native ecommerce platform.

Recent Posts
by Nicholas Alan Clayton on 2024-03-28 at 1:35pm

News and Rumors PR: Bannix (NASDAQ:BNIX) has provided more information on the combination with VisionWave that it announced yesterday, specifying that the imaging technology that VisionWave will acquire from GBT Technologies will primarily seek out applications in military combat scenarios and geological surveys. PR: Grove Collaborative (NYSE:GROV), which combined with Virgin Group II in June...

by Nicholas Alan Clayton on 2024-03-28 at 7:47am

At the SPAC of Dawn Fed Chair Jerome Powell has given new hints that the administration would be showing greater levels of comfort with inflation if a cut could help improve unemployment numbers. Those numbers could get an update today at 8:30 am ET to bring new jobless claims as well as final prices for...

by Nicholas Alan Clayton on 2024-03-27 at 1:31pm

News and Rumors CNBC: Former WeWork (OTC Pink:WEWKQ) founder Adam Neumann has offered to buy back control of the company for $500 million but has yet to secure the necessary financing. WeWork went public with BowX in October 2021. PR: Satellite telecom firm Spire Global (NYSE:SPIR) has signed an agreement to build and launch two...

by Nicholas Alan Clayton on 2024-03-27 at 11:38am

Bannix (NASDAQ:BNIX) has entered into a definitive agreement to combine with VisionWave Technologies for $30 million. The combined company is expected to trade on the Nasdaq once the deal is completed with an initial outside date of September 14. Transaction Overview Bannix has about $17 million in its trust after seeing 77.4% of its shares...

by Nicholas Alan Clayton on 2024-03-27 at 7:33am

At the SPAC of Dawn Much of the attention yesterday was on tracking the swings of the newly-completed Trump Media (NASDAQ:DJT) deal with the FT going as far to suggest it may “make SPACs great again.” Not all of the day’s data points were on the positive side of the ledger, however. IB Acquisition Corp....

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved