two (TWOA) Sells Sponsor Economics to Hennessy Team
by Nicholas Alan Clayton on 2023-03-23 at 7:22am

two (NYSE:TWOA) announced in an 8-K this morning that it has transferred the majority of its sponsor interest to a new team led by SPAC veteran Thomas Hennessy.

The new sponsor entity HC Proptech Partners III is to purchase 4,854,375 promote shares (90.9%) for undisclosed cash consideration and all current SPAC officers are expected to resign.

The handover is expected to occur by March 29, which is also the redemption deadline for the SPAC’s currently scheduled vote to extend its deadline to January 1, 2024. The incoming team will in the meantime seek to sign non-redemption agreements with two’s Class A shareholders with the goal of maintaining at least $50 million in cash in the trust account.

Should the parties fail to secure such agreements, or if other complications prevent the transaction from being consummated by March 29, such as the provision of a D&O insurance policy, then two will cancel its extension vote and opt to liquidate instead.

With the takeover complete and the extension secured, the SPAC is to be renamed PropTech Investment Corporation III, thus effectively joining Hennessy’s earlier series of SPACs. PropTech I completed a combination with Porch.com (NASDAQ:PRCH) in December 2020 and PropTech II closed with Appreciate (NASDAQ:SFR) in November 2022.

The two team, led by Eventbrite (NYSE:EB) co-founder Kevin Hartz, now appears to be checking out of the current SPAC cycle. But, the team’s previous vehicle, one, completed a merger with 3D-printing company Markforged (NYSE:MKFG) in July 2021.

 

Recent Posts
by Nicholas Alan Clayton on 2024-12-20 at 8:13am

At the SPAC of Dawn SPACs are back on the board with a new deal announcement, which is the first in a little over two weeks. This brings the fourth quarter count on fresh deals to a still-meager nine after 27 were announced in the third quarter. By contrast, this quarter has still seen more...

by Kristi Marvin on 2024-12-19 at 8:20pm

Range Capital Acquisition Corp. (NASDAQ: RANGU) announced the pricing of its $100 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “RANGU”, Friday, December 20, 2024. The new SPAC intends to take a generalist approach in searching for a business combination, but will seek opportunities in capital constrained...

by Kristi Marvin on 2024-12-19 at 2:01pm

SPAC Deja Vu There’s been a lot of talk this year in the SPAC market about how it’s finally reverting back to a healthier version of deal flow and the comparison is always, “….like 2019”.  In fact, in 2019, Trump was in office and there were 59 SPAC IPOs priced.  As of this morning, Trump...

by Nicholas Alan Clayton on 2024-12-19 at 12:53pm

This year has seen a variety of innovations for SPACs to continue the lifespan beyond their traditional search windows. In general, this creativity is welcome as long as investors get their chance to have a say and a redemption opportunity at the appropriate time. But, in the second half of 2024, some SPACs have not...

by Kristi Marvin on 2024-12-19 at 8:16am

At the SPAC of Dawn US market futures are green after the gut punch of news on slowing rate cuts, but there are now fresh concerns that the post-election rally may be short-lived. New clouds could be on the horizon as well in the form of a potential government shutdown as well as the implementation...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved