Landcadia IV (NASDAQ:LGA) noted in a preliminary 14A filing today that it would be putting forward a proposal at an upcoming shareholder vote to buy back all outstanding warrants for undisclosed cash compensation.
The vote is to be held primarily to extend Landcadia IV’s transaction deadline from September 29 to March 24, 2024 and its proposals could still be modified further. But for now, this represents another entry in an increasing trend of SPACs looking to sort out their warrant overhang sooner rather than later.
For Landcadia IV, it is quite soon, however, despite being attached to an extension. The SPAC has not yet announced a definitive agreement to combine with a company. Therefore, the 1/4 warrants included in its units have a more hypothetical value than those associated with a SPAC with a deal in hand and a cash offer would likely be popular with holders.
Even with no specific cash price on offer, at least some warrant traders have noticed this inclusion in the proxy. Landcadia IV warrants (NASDAQ:LCAHW) are up about 78.8% this morning to $0.0490 after last closing at $0.0274.
Overall, the 1/4 warrant is the smallest coverage Landcadia SPACs have included in units after Landcadia II and III included 1/3 warrants and the first iteration IPO’d with 1 for 1/2. Still, the serial team, whose first three deals are valued at a median $9.44, appears to have made the calculation that it may be more competitive in target negotiations with less dilution on the table.
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...