Forum Merger IV Corporation (Nasdaq: FMIV) announced this morning that it has signed a non-binding letter of intent (LOI) to combine with a target in the online gaming industry.
Today’s press release stated that the unnamed target provides customers with an expansive portfolio of digital gaming products, bringing in $300 million in revenue for 2022. It expects adjusted EBITDA margins of approximately 30% and anticipates strong free cash flow conversion for 2023 substantially in excess of 2022 levels.
The news of the LOI comes just as Forum IV’s board has elected to extend its completion deadline from March 22 to November 22. The SPAC has filed a proxy to hold a special meeting on March 7 for shareholders to vote on the extension. The redemption deadline will be on March 3.
In connection with the extension, FMIV intends to deposit approximately $175,000, or $0.05 for each public share then outstanding, into the trust account at the beginning of each month. It also clarified that funds in its trust, including any interest, will not be used to pay for an excise tax imposed under the Inflation Reduction Act of 2022.
Forum Merger IV announced the pricing of its $300 million IPO in March 2021 and set out to combine with a business with proven revenue growth valued between $500 million and $5 billion.
Since today’s announcement is only at LOI stage, SPACInsider will not consider this deal as fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.
Terms Tracker for the Week Ending March 31, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Filings continue to remain quiet, but SPACs did manage to price two more IPOs this week with TMT Acquisition Corp (Nasdaq: TMTCU) and Trailblazer Merger...
Hudson Acquisition I Corp. (NASDAQ:HUDA) announced that it has signed a non-binding letter of intent (LOI) to combine with a pre-clinical-stage biotechnology company. The SPAC did not provide many details on the unnamed target, but disclosed that the biotech company is focused on developing intranasal preventives for major disease-causing respiratory viruses. As a condition to the target...
Heading into April, SPACs are to see eight sponsors and 11 de-SPAC’d companies freed from lock-ups and ready to trade. Most of these lock-up expirations are loaded into the final week of the month, but those hitting this milestone already next week include some of the more interesting transactions of the crop. In particular, MoonLake...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Shares of Digital World jump after Trump’s indictment, and pair of Delaware Chancery court decisions deny motions to dismiss SPAC shareholder’s fiduciary breach claims Trump-Tied SPAC’s Shares Jump After Historic New York Charge The...
Ares Acquisition Corporation II (NYSE:AACT) filed its S-1 yesterday afternoon for a $400 million IPO, marking the second SPAC to file for an IPO in March and the largest since December 20, 2021, when Gores Holdings X Inc. filed for a $725 million SPAC. Ares II intends to focus its search on an established target...