Oak Woods Acquisition Corporation (OAKU) to Combine with Huajin in $250M Deal
by Nicholas Alan Clayton on 2023-08-14 at 8:43am

Oak Woods (NASDAQ:OAKU) announced in an 8-K this morning that it has entered into a definitive agreement to combine with Huajin at a valuation of $250 million.

Transaction Overview

Oak Woods has about $58.5 million in its trust with a transaction deadline coming up on September 28. Huajin is to pay Oak Woods $330,000 within 15 days, a portion of which is to be used on extension contributions and incentives as well as operating expenses.

The two parties have agreed to make their best efforts at arranging a PIPE of unspecified size for the deal.

Huajin is to be valued at $250 million in issued shares, minus the company’s net debt. Oak Woods must maintain more than $5 million in order for the deal to close, and Huajin is to pay the SPAC a $2 million breakup fee if the deal is terminated under some conditions.

Both the company and sponsor have agreed to a one-year lock-up, but the sponsor may begin trading shares if the company trades at or above $12 for 20 of 30 trading days at least 150 days out from close.

The combined company will have a Board of five directors at close, three of which will be appointed by Oak Woods.


Quick Takes: Very little information has been released thus far on this combination and the gaps in information currently include a basic description of the company.

Oak Woods has also operated with a relatively thin staff. Lixin Zheng has worn the CEO, CFO and Chairman hats since the SPAC’s March IPO. He brings experience from managing the Hong Kong-listed Ajisen (HK:0538) fast casual restaurant chain and previously took Rinpak Technology public on the Taipei exchange.

The SPAC’s Board also includes the NYSE’s youngest-ever floor trader, Lauren Simmons, and Mitchell Cariaga, who initially served as an independent director for Brilliant Acquisition Corporation but resigned in February 2022.

Keeping with the theme, Oak Woods did not elaborate on its strategy in great detail in its S-1, but noted that it was most interested in combining with a medical services or healthcare target with strong ESG qualities.

As with the time zones, many times investors have to wait a little longer on details involving Asian deals, and this is no exception.

 

Oak Woods Acquisition Corporation (OAKU) to Combine with Huajin in $250M Deal
Recent Posts
by Nicholas Alan Clayton on 2025-07-03 at 12:54pm

Crown PropTech (OTC:CPTKW) has entered into a definitive agreement to combine with rare earth mining firm Mkango Resources (TSX-V:MKA) at a pre-money equity value of $400 million. London-based Mkango is working to commercialize a chain of rare earth mining and refining facilities in Africa and Europe. The combined company is expected to trade on the...

by Nicholas Alan Clayton on 2025-07-03 at 8:27am

At the SPAC of Dawn One of the biggest sources of uncertainty in the SPAC market in recent years has been regulatory changes, but new shifts could be in its favor. SEC Chairman Paul Atkins told CNBC yesterday that the commission would review the rules for SPACs after “rather controversial” changes to the rules passed...

by Nicholas Alan Clayton on 2025-07-02 at 12:13pm

McKinley Acquisition Corporation (NASDAQ:MKLYU) has filed for a $150 million SPAC to hunt for an innovative target company with an experienced financial team that has dabbled in SPACs before. The new SPAC is offering investors one right to a 1/10 share in each unit with no overfunding of the trust, but it could provide a...

by Nicholas Alan Clayton on 2025-07-02 at 8:29am

At the SPAC of Dawn The rain of SPACs has continued with four expected to make their debuts during today’s trading sessions after pricing their IPOs overnight. The largest of these, EQV Ventures II (NASDAQ:EVACU), even managed an upsize, making it the largest SPAC IPO since Ares II (NYSE:AACT) pulled together $450 million in 2023....

by Nicholas Alan Clayton on 2025-07-02 at 6:28am

EQV Ventures II (NASDAQ:EVACU) announced the pricing of its upsized $420 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EVACU”, Wednesday, July 2, 2025. The new SPAC plans to merge with an energy target involved in upstream exploration or production. EQV II’s management team is led by...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved