Energem Corp. (ENCP) Secures $200M Standby Equity Purchase Agreement
by Marlena Haddad on 2023-01-17 at 9:30am

Energem Corp. (NASDAQ:ENCP) announced this morning that it has secured a Standby Equity Purchase Agreement with YA II, managed by Yorkville Advisors Global, in connection to its proposed merger with sustainable materials maker Graphjet Technology.

Under the terms of the agreement, Graphjet will have the right, but not the obligation, to issue and sell up to $200 million in ordinary shares to the investor.

The ordinary shares purchased pursuant to an advance are expected to be equal to 96% of the VWAP during a one-day pricing period or 97% of the three-day VWAP during a three-day pricing period elected by Graphjet. This will be based on its funding requirement at any time during the 36 months and the effectiveness of a registration statement with the SEC registering Graphjet Technology’s ordinary shares issuable pursuant to the agreement.

Additionally, the company will select the amount of the advance that it desires to sell to YA II in a notice and is not allowed to exceed more than an amount equal to 100% of the average daily traded amount during the five consecutive trading days immediately preceding a notice or one million ordinary shares.

There is no mandatory minimum of advances under the agreement. However, Graphjet may not issue or sell any shares that would result in YA II beneficially owning more than 9.99% of the outstanding ordinary shares.

The agreement will automatically terminate on the earliest of the first day of the month following the 36-month anniversary of the sixth trading day after the business combination closes, the date on which YA II made payments for the ordinary shares equal to the commitment amount, and the termination of the agreement. The agreement may also be terminated at any time by the mutual written consent of the parties or by Energem five trading days prior written notice to YA II.

Energem inked its $1.49 billion deal with Graphjet on August 1, 2022. Kuala Lumpur-based Graphjet processes palm kernel shells into graphene and graphite materials for EV batteries, medical devices and home appliances.

The SPAC originally brought $117 million into the deal through its trust, but holders of 9,604,519 shares exercised their right to redeem at an extension meeting in November, removing approximately $98.06 million from the trust. Following the payment of the redemptions, Energem had a balance of approximately $19.36 million.

Graphjet hopes to use the funding from the standby equity purchase agreement to accelerate growth and construct a manufacturing facility for graphite.


Recent Posts
by Kristi Marvin on 2023-12-02 at 11:45am

Terms Tracker for the Week Ending December 1, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. For the most part, this was a quiet week for filings being that it followed the Thanksgiving holiday. Ideally, bankers, lawyers and teams got a...

by Marlena Haddad on 2023-12-01 at 5:39pm

Aimei Health Technology Co., Ltd (NASDAQ: AFJKU) announced the pricing of its $60 million IPO this evening. Its units are expected to begin trading on the Nasdaq under the symbol “AFJKU” on Monday, December 4, 2023. After the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to...

by Marlena Haddad on 2023-12-01 at 4:43pm

PROOF Acquisition Corp I (NYSE: PACI) announced this afternoon that it has closed its business combination with private aviation company Volato after shareholders approved the deal at a meeting on November 28. In total, including previous shareholder votes, shareholders opted to redeem an aggregate of 99.93% of PACI’s trust, leaving it with less than $215,000...

by Marlena Haddad on 2023-12-01 at 9:34am

Adit EdTech (NYSE: ADEX) announced this morning that its shareholders have approved its business combination with bitcoin self-mining company Griid Infrastructure at a special meeting held yesterday, November 30. A total of 8,520,710 shares of common stock, representing approximately 95.7% of the outstanding shares entitled to vote, were present at the meeting, constituting a quorum...

by Nicholas Alan Clayton on 2023-12-01 at 7:49am

At the SPAC of Dawn There had been hopes that this week would take one world conflict off the board, but combat has resumed in the Middle East as other eyes are likely to be fixed on new Fed comments today. The fighting in Gaza continues to not appear to have appreciable affects on the...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved