As background, East Stone brought an estimated $33.5 million into the deal from its current trust and supplemented this with a $200 million PIPE at $10.26 per share from an investor. The SPAC must have at least $5,000,001 in net tangible assets in order to close the deal. The additional $200 million PIPE comes from a second investor and has the same terms as the initial PIPE.
East Stone is hoping that the third time is the charm through its business combination with ICONIQ as it terminated its two previous combinations. East Stone’s first announcement with Ufin Holdings was quietly dropped in favor of a merger with Chinese merchant fintech firm JHD Holdings, which it also terminated.
Nonetheless, getting together any kind of PIPE in the current market is impressive, but to get $400 million together at roughly the SPAC’s estimated pro rata trust value of $10.27 is doubly so.
East Stone initially announced the $2.5 billion combination with ICONIQ on April 18. The Chinese ICONIQ electric car brand is now headquartered in Dubai, with four vehicle models under development.