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.
Terms Tracker for the Week Ending September 6, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. It was a short holiday week and while it was light on filings, SPACs did manage to price two IPOs. That means 2024 has now...
Compass Digital (NASDAQ:CDAQ) has entered into a definitive agreement to combine with renewable energy firm EEW at a pro forma enterprise value of $386 million. London-based EEW is a solar, hydrogen and energy storage project developer with 1.4 GW of solar projects sold to date in Australia, the UK, Spain, and Sweden. The combined company...
Evergreen (NASDAQ:EVGR) has entered into a definitive agreement to combine with enterprise software firm Forekast at a pre-money enterprise value of $105 million. The company provides data analytics and customer engagement tools backed by some degree of AI automation to improve efficiencies for its business clients. The combined company is expected to trade on the...
At the SPAC of Dawn The auto-reply messages are off. SPACs are definitively back from vacation and in the thick of it. Two new SPACs are set to debut in trading today in Vine Hill (NASDAQ:VCICU) and Andretti II (NASDAQ:POLEU) and two SPACs have also landed their search on new targets, which could pull a...
Vine Hill Capital Investment Corp. announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “VCICU”, Friday, September 6, 2024. The new SPAC intends to focus its search on a target business in the industrial and services industries, where it believes the expertise...