ESGEN Acquisition Corp.(ESAC) Cuts Sunergy Valuation in Deal Tweak
by Marlena Haddad on 2024-01-25 at 9:45am

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.

Recent Posts
by Nicholas Alan Clayton on 2024-03-04 at 1:43pm

Deals and Funding Power & Digital II (NASDAQ:XPDB) has expanded the PIPE for its combination with Montana Technologies to about $50 million in commitments led by Carrier (NYSE:CARR) and Rice Investment Group. Blue World (NASDAQ:BWAQ) has amended its combination with TOYO Solar to reflect that it has been restructured under new ownership. Entities called WAG,...

by Nicholas Alan Clayton on 2024-03-04 at 7:43am

At the SPAC of Dawn The first full week of March comes with a bevy of votes as SPACs investors will be asked to help complete nine deals and extend seven other SPACs’ transaction timelines. Two SPACs are set to come off the board today, however, as Revelstone (NASDAQ:RCAC) and Vector II (NASDAQ:VAQC) commence their...

by Anthony Sozzi on 2024-03-02 at 11:58am

Contributions to trust are typically expected from sponsors looking to retain as much of the trust account as possible that need additional time to complete business combinations. With “time to complete” steadily increasing over the past months, redemptions from the trust account do not look to be slowing down, regardless of what SPAC teams do...

by Kristi Marvin on 2024-03-02 at 11:45am

Terms Tracker for the Week Ending March 1, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. The last week of February turned out to be a sluggish one with not a lot happening on the new issuance front. Once again, there...

by Nicholas Alan Clayton on 2024-03-01 at 1:28pm

News and Rumors Bloomberg: Digital World (NASDAQ:DWAC) and its target Trump Media and Technology Group (TMTG) were hit by a new wave of legal headaches this week as both the founders of its Truth Social platform and Digital World CEO Patrick Orlando filed lawsuits over the deal’s closing share allocations. One of the suits has...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved