Gores Holdings VIII (GIIX) Re-Strikes Footprint Deal
by Nicholas Alan Clayton on 2022-09-06 at 7:23am

Gores VIII (NASDAQ:GIIX) announced this morning that it has amended its deal with sustainable materials-maker Footprint, bringing in new capital and lowering the target’s valuation.

The parties agreed to lower Footprint’s enterprise value by 37.5% to $1 billion from $1.6 billion while adding a standby equity facility worth up to $300 million and a $280 million facility designated for equipment purchases through 2023. Footprint is to have access to a minimum of $100 million under the standby equity facility but can pull in up to $300 million at its discretion.

Koch Strategic Platforms has also upsized its investment in the transaction’s PIPE, which is now anticipated to deliver $290 million to Footprint prior to the deal’s close. Taken together with the roughly $345 million Gores VIII holds in trust, the transaction is now expected to provide up to $960 million in cash proceeds.

Footprint also provided an update in its press release, noting that it is on pace to rack up $924 million in contracted revenue by the end of 2022, although just how solidified those arrangements are is yet to be seen.

Gores VIII initially announced the deal on December 14 and it is gradually become one of the older pending transactions among experienced SPAC teams. These changes show, however, that the teams have been busy during this time.

With major capital expenditures slated to help it build out its manufacturing capacity, Footprint expects to generate $135 million in revenue in 2022E with the company’s first EBITDA-positive year coming in 2023E when it is projected to generate $23 million from $500 million in revenue.

 

 

Recent Posts
by Nicholas Alan Clayton on 2024-03-29 at 7:38am

At the SPAC of Dawn On a day when the US markets are closed, there’s always a chance of SPAC actions sliding by as the SEC has left its EDGAR filing system open. Right on cue, Welsbach Technology (NASDAQ:WTMA) filed that it had come to a definitive agreement with battery production technology firm Evolution Metals....

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...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved