DiamondHead Holding Corps. (DHHC) Adds Funding to Great Southern Homes Deal
by Marlena Haddad on 2023-03-28 at 10:32am

DiamondHead Holding Corps. (NASDAQ:DHHC) announced in an 8-K this morning that it has entered into subscription agreements with lock-up investors and PIPE investors in connection to its business combination with Great Southern Homes.

Although the deal was approved by shareholders during a meeting last Thursday, the parties are still working to raise funds to meet the $125 million minimum cash condition in order to close the deal. Only 109,426 shares were redeemed in the connection with the vote, but DiamondHead has seen about 87% redemptions in total across all previous votes, leaving it with about $43.9 million in its trust.

On March 23, DHHC entered into certain private placement transactions with lock-up investors. The SPAC agreed to issue 0.25 UHG Class A Common Shares, or up to 421,100 UHG Class A Common Shares, to each lock-up investor for $0.01 per share, for each share of DHHC Class A Common Shares held by the lock-up investor at the closing.

Additionally, the SPAC and PIPE investors entered into subscription agreements for the purchase of 4471,500 shares of UHG Class A Common Shares at a price per share of $10. For each UHG Class A Common Share purchased by each PIPE investor, UHG will issue to the applicable PIPE investor 0.25 UHG Class A Common Shares, or up to 117,875 UHG Class A Common shares in the aggregate, for a purchase price of $0.01 per share for gross proceeds to UHG of approximately $4.7 million.

Pursuant to the terms of the share lock-up agreements and the PIPE subscription agreements, each of the investors has agreed to subject all of the UHG Class A Common Shares following the completion of the transactions to resale and transfer restrictions for one year for 50% of the lock-up shares and two years for the remaining 50%. The foregoing resale and transfer restrictions may be waived by DHHC provided that an investor is granted a release from the restrictions.

DiamondHead initially announced the $572 million combination with Great Southern Homes in September 2022. Columbia, South Carolina-based Great Southern Homes is one of the largest homebuilders in the Southeast and focuses on the entry level home buyer segments.

The combined company is expected to trade on the Nasdaq under the name United Homes Group and the new ticker symbol “UHG” following close.

DiamondHead Holding Corps. (DHHC) Adds Funding to Great Southern Homes 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