CENAQ Energy Corp. (NASDAQ:CENQ) in an 8-K filing gave an update this morning that its investors have not yet been able to raise the full $80 million PIPE that was initially intended at its deal announcement.
In connection to CENAQ’s business combination with gasoline supplier Bluescape Clean Fuels on August 12, the SPAC entered into subscription agreements with each of its new PIPE investors, which agreed to purchase an aggregate of 8,000,000 PIPE shares at $10.00 per share for an aggregate purchase price of $80 million. The PIPE is led by Arb Clean Fuels Management LLC and Bluescape Holdings.
Of the $80 million in commitments, Bluescape Holdings previously agreed to purchase 800,000 shares for an aggregate commitment of $8 million and Arb agreed to purchase 7,000,000 shares for a commitment of $70 million. However, this is provided, that, to the extent the funds in the trust, after redemptions, exceed its threshold of $17,420,000, each $10.00 increment of such excess funds will reduce Arb’s commitment by $10.00 up to a maximum reduction of $20 million.
Arb previously notified CENAQ in November that it had raised financing to purchase only 5,000,000 PIPE Shares for an aggregate of $50 million, out of its full commitment of 7,000,000 PIPE Shares for an aggregate of $70 million.
As of today, Arb has notified CENAQ that it has received non-binding commitments to purchase only 3,000,000 PIPE shares for an aggregate of $30 million. But, Arb intends to continue focusing on raising further funds necessary to purchase its full commitment.
Cenaq warned that if Arb does not fund its full commitment in accordance with the terms of its subscription agreement, the SPAC may not be able to satisfy its closing condition of having at least $80 million in gross proceeds from its PIPE in order to complete its business combination.
Dallas, Texas-based Bluescape Clean Fuels turns waste feedstocks into renewable gasoline, allowing consumers to reduce their carbon footprint. Upon closing of the business combination, which is expected to occur in the first quarter of 2023, the combined company will be named Verde Clean Fuels, Inc. (“VCF”).
At the SPAC of Dawn Although the drought of new SPAC transactions is approaching one full month, that hasn’t stopped the dealmaking between de-SPACs themselves. Trump Media (NASDAQ:DJT) is reportedly in advanced talks to buy crypto and digital asset marketplace and 2021 de-SPAC Bakkt (NYSE:BKKT) in an all-stock deal, according to FT. The former target...
Columbus Acquisition Corp (NASDAQ:COLAU) has filed for a $57.5 million IPO to give its team a second vehicle in circulation to hunt for deals. The same team IPO’d Eureka (NASDAQ:EURK) in July at a slightly smaller $50 million scale and this new SPAC would improve upon some of that foray’s terms. Both SPACs managed to...
At the SPAC of Dawn One week before Thanksgiving, SPACs are not filling up their plate with just five votes scheduled, all of which are extensions. Five of these are set to take place today, and investors are also set to get an update on one of the most successful de-SPACs of recent years. Industrial...
Terms Tracker for the Week Ending November 15, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. The drought in De-SPAC deals continues without a single announced combination since October 23rd. That’s more than three weeks now with SPACs experiencing a dry...
Few corners of the market have seen a bigger boost from the result of the US elections than the crypto industry, and SPACs are always sure to be drawn to where the action is. But, in crypto’s case, this is a play that SPACs have been involved in before, so the question is more of...