Legato Merger Corp II (NASDAQ:LGTO) announced it has now closed its combination with construction firm Southland Holdings and the combined company’s shares and warrants will soon trade under the symbols “SLND” and “SLNDW”, respectively.
Shareholders redeemed about 91.6% of Legato II’s shares at the completion vote, however. Because the deal did not include a PIPE, this drops the total cash proceeds to about $23.6 million, but the deal did not carry a minimum cash condition.
Southland’s plans may not have been contingent on much new cash in any case. According to the parties’ investor presentation, Southland has been EBITDA-positive since at least 2013 and it generated $99 million in EBITDA in 2021.
If the company hits $125 million in EBITDA for 2022, Southland shareholders stand to receive 3,448,276 shares through an earnout and 1,724,138 more if EBITDA meets or exceeds $145 million. These shareholders will get the same amounts for 2023 targets of $145 million and $165 million.
The parties announced their combination in May 2022. Grapevine, Texas-based Southland provides construction services focused on large infrastructure projects out of offices in 18 US states and Canadian provinces.
Last week, Southland was awarded a $102 million road and bridge extension project by the state of Louisiana to build a 28-span bridge over a bayou.
ADVISORS
- Legato II is represented by Graubard Miller
- Southland is represented by Winstead PC. D.A.
- Davidson & Co. and Thompson Davis & Co. are acting as capital market advisors to Legato II.
Vehicle data-tracker Wejo (NASDAQ:WEJO) announced in an 8-K this afternoon that it has filed its intention to appoint an administrator to oversee its insolvency and it is evaluating whether it will do so in the United States as well. The company, which completed a de-SPAC transaction with Virtuoso in November 2021, has another SPAC deal...
Aimei Health Technology Co. (NASDAQ:AFJK) filed its S-1 Friday afternoon for a $50 million IPO, marking the fourth SPAC to file for an IPO in May and the twelfth year-to-date. Given its name, it comes as no surprise that Aimei Health Technology intends to pursue prospective targets that are focused on healthcare innovation. More specifically, the...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: GreenLight Biosciences returns to private market, Jet.AI partners with Vegas Golden Knights and Cirrus Aviation, and True Velocity announces partnership with FN America GreenLight returns to private market in $46M deal after taste of...
GreenLight Biosciences (NASDAQ:GRNA), which combined with Environmental Impact in February 2022, announced this morning that it is being acquired in a go-private transaction by Fall Line Capital for $45.5 million. While this is a steep valuation decline from its $1.23 billion enterprise value at the announcement of its SPAC deal, this price does represent a...
FOXO Technologies Inc. (NYSE:FOXO), which completed its business combination with Delwinds Insurance in September 2022, announced this morning that it has consummated its exchange offer for all outstanding warrants as well as its PIK note offer to amend. As part of the offer, all holders of FOXO’s warrants received 4.83 shares of Class A common...