ESGEN Acquisition Corp. (NASDAQ:ESAC) announced this morning that it has amended its combination with residential solar company Sunergy, shrinking its valuation while adding committed funding.
Under the revised terms of the transaction, ESGEN’s sponsor has committed to buying $15 million in convertible preferred equity securities. Of this amount, $10 million will be provided at the close of the combination, while the remaining $5 million may be funded at the discretion of the combined company within six months after closing. Energy Spectrum Partners VIII will finance the purchase of the Convertible Preferred Securities.
As a result, the enterprise value for the combined company has been lowered -17.8% to $390 million from $475 million, with the proceeds earmarked for operational and growth purposes.
Additionally, the sponsor and other insiders have agreed to forfeit 2,900,000 million founder shares upon closing, leaving 4,000,000 founder shares remaining. An extra 500,000 founder shares will also be forfeited if the convertible preferred securities are redeemed or if the sponsor converts them within two years of closing.
Lastly, all outstanding private placement warrants held by the sponsor and other insiders will be canceled upon the transaction’s closing.
ESGEN announced its deal with Sunergy in April and expects to complete the combination in the first half of 2024. The New Port Richey, Florida-based company installs home-based solar panel systems primarily in three Southern US states.
At the SPAC of Dawn Another day, another wave of trade war news as US President Donald Trump has announced fresh 25% tariffs on all imported automobiles on April 3 in addition to the new customs duties expected to come into force on April 2. These moves cut across a wide swath of SPAC target...
Armada Acquisition Corp. II has filed for a $200 million SPAC to combine with a fintech, SaaS or AI company with nearly the same team top-to-bottom that just completed its first SPAC combination in that space. The filing is Cohen & Company’s seventh of the year as left-lead underwriter and Northland Capital Markets is stepping in...
HCM II (NASDAQ:HOND) has entered into a definitive agreement to combine with nuclear reactor developer Terrestrial Energy at a pro forma equity value of $1.3 billion. Charlotte, North Carolina-based Terrestrial is developing unique molten salt nuclear reactors designed to generate enhanced heat outputs for industrial client processes. The combined company is expected to trade on...
At the SPAC of Dawn Rain or shine, legal challenges for SPACs do not appear to be going anywhere. Cornerstone Research found this week that the number of securities class action lawsuit settlements increased +6% in 2024 and suits targeted at SPACs or de-SPACs represented 19% of this total. On the plus side, the median...
At the SPAC of Dawn A new conservative stock with meme potential is further taking shape as the market finds its footing this week. Firearms marketplace GrabAGun nominated its Board that will take their seats after the company completes its combination with Colombier II (NYSE:CLBR) anticipated later this summer. This Board includes Donald Trump Jr.,...