CENAQ Energy Corp. (CENQ) Warns PIPE Investors Fall Short
by Marlena Haddad on 2022-12-30 at 10:22am

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”).


Recent Posts
by Marlena Haddad on 2023-12-08 at 1:59pm

Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...

by Nicholas Alan Clayton on 2023-12-08 at 11:12am

Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...

by Marlena Haddad on 2023-12-08 at 10:27am

EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...

by Marlena Haddad on 2023-12-08 at 9:42am

Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...

by Nicholas Alan Clayton on 2023-12-08 at 7:48am

At the SPAC of Dawn This week ends with an unusually busy earnings calendar as 172 US-listed companies report quarterly figures today. Among them is Exela Technologies (NASDSAQ:XELA), which completed a combination with Quinpario 2 in 2017. The billing software company has gone on to do another SPAC deal on November 29, this time spinning...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved