Crown PropTech (NYSE:CPTK) announced this afternoon that a PIPE investor, which was contributing $68 million, will terminate its funding in connection to its proposed merger with smart building solutions provider Brivo.
The SPAC received a notice of election from Golub Capital LLC on Monday, July 11, that it had elected to terminate its subscription agreement because the business combination was not consummated by July 9. As a result, Crown is now required to seek additional financing in order to satisfy its minimum cash closing condition of at least $75 million.
Crown Proptech is funding the deal with about $276 million from its current trust and originally expected a $75 million PIPE led by Golub Capital Credit Opportunities with a strategic investment from Eagle Eye Networks. These PIPE commitments were conditioned upon the deal meeting its minimum cash requirement and other stipulations, however.
The SPAC initially announced its $808 million combination with Brivo last year on November 10, 2021. Bethesda, Maryland-based Brivo provides cloud-connected property management software and hardware to commercial clients including developers and businesses.