ESGEN Acquisition Corp. (NASDAQ:ESAC) announced this morning that it has amended its combination with residential solar company Sunergy, shrinking its valuation while adding committed funding.
Under the revised terms of the transaction, ESGEN’s sponsor has committed to buying $15 million in convertible preferred equity securities. Of this amount, $10 million will be provided at the close of the combination, while the remaining $5 million may be funded at the discretion of the combined company within six months after closing. Energy Spectrum Partners VIII will finance the purchase of the Convertible Preferred Securities.
As a result, the enterprise value for the combined company has been lowered -17.8% to $390 million from $475 million, with the proceeds earmarked for operational and growth purposes.
Additionally, the sponsor and other insiders have agreed to forfeit 2,900,000 million founder shares upon closing, leaving 4,000,000 founder shares remaining. An extra 500,000 founder shares will also be forfeited if the convertible preferred securities are redeemed or if the sponsor converts them within two years of closing.
Lastly, all outstanding private placement warrants held by the sponsor and other insiders will be canceled upon the transaction’s closing.
ESGEN announced its deal with Sunergy in April and expects to complete the combination in the first half of 2024. The New Port Richey, Florida-based company installs home-based solar panel systems primarily in three Southern US states.
At the SPAC of Dawn Lately de-SPACs have been announcing corporate moves of a kind frequently in trios as was the case earlier this week when WeBull (NASDAQ:BULL), AST SpaceMobile (NASDAQ:ASTS) and Quantum-Si (NASDAQ:QSI) all announced major equity raises. This week, it is a trio of de-SPACs making reverse stock splits in unison, which is...
A look at Plus’ software-first approach to autonomous trucking. After years of investment and excitement, the dawn of self-driving cars and trucks is now here. The question now is which business model among autonomous driving technology companies will win out? This week, we speak with David Liu, CEO of autonomous trucking company Plus. Plus announced...
At the SPAC of Dawn One thing that SPAC investors can typically count on while their money is invested in a SPAC’s trust is that it is going to grow one way or the other between now and their next redemption opportunity, but the devil can occasionally be in the details. In 2024, it became...
Thunderstone has filed for a $50 million SPAC to put a new first-time Asia-based team in action on a generalist hunt. The new SPAC is offering investors a right to a 1/8 share in each unit with 18 months to initially complete a business combination. It is the 8th fresh S-1 filed with underwriter D....
At the SPAC of Dawn In a trading session that may find itself built around the release of Fed minutes at 2 pm ET this afternoon, a pair of SPAC targets have added their own fresh information to the mix. Enterprise AI firm Fusemachines, which has a pending combination with CSLM (OTC:CSLMF), put out a...