Forum Merger IV Corporation (FMIV) Signs Non-Binding LOI
by Marlena Haddad on 2023-02-14 at 12:55pm

Forum Merger IV Corporation (Nasdaq: FMIV) announced this morning that it has signed a non-binding letter of intent (LOI) to combine with a target in the online gaming industry.

Today’s press release stated that the unnamed target provides customers with an expansive portfolio of digital gaming products, bringing in $300 million in revenue for 2022. It expects adjusted EBITDA margins of approximately 30% and anticipates strong free cash flow conversion for 2023 substantially in excess of 2022 levels.

The news of the LOI comes just as Forum IV’s board has elected to extend its completion deadline from March 22 to November 22. The SPAC has filed a proxy to hold a special meeting on March 7 for shareholders to vote on the extension. The redemption deadline will be on March 3.

In connection with the extension, FMIV intends to deposit approximately $175,000, or $0.05 for each public share then outstanding, into the trust account at the beginning of each month. It also clarified that funds in its trust, including any interest, will not be used to pay for an excise tax imposed under the Inflation Reduction Act of 2022.

Forum Merger IV announced the pricing of its $300 million IPO in March 2021 and set out to combine with a business with proven revenue growth valued between $500 million and $5 billion.

Since today’s announcement is only at LOI stage, SPACInsider will not consider this deal as fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.

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