Freedom I (NYSE:FACT) announced this morning that it has lowered the pre-money equity valuation by half for its target Complete Solaria while bringing in $10 million more in commitments to its bridge financing.
The changes drop Complete Solaria’s valuation to $225 million from $450 million at announcement. Freedom I tipped that it was considering such a change in a presentation it released in late May and comes in reaction to dropping share prices among Complete Solaria’s listed comp universe.
Complete Solaria was created from the 2022 merger of two California-based residential solar companies, which made it a vertically integrated developer in the space from panel technology through installation and customer financing.
The presentation noted that as of May 22, its downstream solar peers had seen their share price drop between -34.7% and -59% since the announcement of Complete Solaria’s combination with Freedom I in October.
Upstream solar developers had fared better with peers Maxeon (NASDAQ:MAXN) and SolarEdge (NASDAQ:SEDG) each performing positively over this period, but Enphase (NASDAQ:ENPH) and Generac (NYSE:GNRC) saw share declines of -43.7% and -36.9%, respectively.
Freedom I said it believes the adjustment will provide a more attractive entry point for investors, perhaps as evidenced by the fact it has now expanded its bridge financing to $40 million with the new funding.
This is still well below the transaction’s $100 million minimum cash condition, but Freedom I still has $114 million in its trust with 67.4% redeemed thus far. The parties are aiming for a third quarter 2023 close, and the SPAC can automatically extend its deadline up to September 2.
Terms Tracker for the Week Ending November 24, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This being the Thanksgiving holiday week, we are thankful for a lot of things, but mostly that 2023 is almost over. It’s been a rough...
At the SPAC of Dawn Though perhaps stuffed to the brim, SPAC activity continues this Thanksgiving Friday with votes by Clean Earth and Zalatoris to extend a deadline and amend trust contributions, respectively. At least seven de-SPACs are also reporting earnings today and will do so going into a futures market that is mostly green...
IB Acquisition Corp. submitted its S-1 filing Friday afternoon for a $100 million IPO, coming right on the heels of Bayview Acquisition Corp, which also filed its S-1 that day. IB is also similar to Bayview in that its units do not feature a warrant but include 1 right for 1/10. However, its trust is slightly...
Integrated Wellness (NYSE:WEL) announced in an 8-K filing that it agreed to transfer control of its sponsor to Sriram Associates, which will now take on the SPAC’s financial obligations and may appoint a new team. Sriram is acquiring 2,012,500 promote shares (70%) and 4,795,000 private placement warrants (70%) for the nominal purchase price of $1....
At the SPAC of Dawn So far, seven SPACs have announced their liquidations this week and although some others may choose to use the holiday to quietly disband, this tends to be a positive week for equities in general. Going back to 1961, the S&P 500 has ended the Thanksgiving week with gains three-quarters of...