Freedom I (NYSE:FACT) announced this morning that it has lowered the pre-money equity valuation by half for its target Complete Solaria while bringing in $10 million more in commitments to its bridge financing.
The changes drop Complete Solaria’s valuation to $225 million from $450 million at announcement. Freedom I tipped that it was considering such a change in a presentation it released in late May and comes in reaction to dropping share prices among Complete Solaria’s listed comp universe.
Complete Solaria was created from the 2022 merger of two California-based residential solar companies, which made it a vertically integrated developer in the space from panel technology through installation and customer financing.
The presentation noted that as of May 22, its downstream solar peers had seen their share price drop between -34.7% and -59% since the announcement of Complete Solaria’s combination with Freedom I in October.
Upstream solar developers had fared better with peers Maxeon (NASDAQ:MAXN) and SolarEdge (NASDAQ:SEDG) each performing positively over this period, but Enphase (NASDAQ:ENPH) and Generac (NYSE:GNRC) saw share declines of -43.7% and -36.9%, respectively.
Freedom I said it believes the adjustment will provide a more attractive entry point for investors, perhaps as evidenced by the fact it has now expanded its bridge financing to $40 million with the new funding.
This is still well below the transaction’s $100 million minimum cash condition, but Freedom I still has $114 million in its trust with 67.4% redeemed thus far. The parties are aiming for a third quarter 2023 close, and the SPAC can automatically extend its deadline up to September 2.
Terms Tracker for the Week Ending September 22, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. SPACs finally saw two new S-1 filings this week, the first to file since August 24th. Hainan Sirius Acquisition Corp. filed first on Thursday and...
Latest SPAC Liquidations: LF Capital Acquisition Corp. II LF Capital Acquisition Corp. II (LFAC) to Liquidate on October 3, 2023 LF Capital Acquisition Corp. II (Nasdaq: LFAC), today announced that the directors of the Company have determined to dissolve and liquidate the Company. The redemption of the Public Shares is expected to be completed on...
Latest Non-Redemption Agreements: Yotta Acquisition Corp.,Live Oak Crestview Climate Acquisition Corp. Yotta Acquisition Corp. (YOTA) Adds Non-Redemption Agreements Yotta Acquisition Corp. (NASDAQ:YOTA) entered into non-redemption agreements with certain unaffiliated third parties in exchange for such third parties agreeing not to redeem an aggregate of 598,680 shares of the Company’s common stock. In exchange for the foregoing...
Twin Ridge (NYSE:TRCA) announced this afternoon that it plans to convene and then adjourn its extraordinary general meeting of its shareholders originally to be held on September 26 at 11:30 a.m., Eastern Time. Twin Ridge intends to hold the new meeting at 11:30 a.m., Eastern Time, on October 3, 2023. Additional details were not given as to...
Social Leverage Acquisition Corp I (Nasdaq: SLAC) and W3BCLOUD Holdings Inc. announced this afternoon that they have mutually agreed to terminate their business combination agreement. The reasons cited were once again “due to existing market conditions”, which most likely implies the current capital market conditions as well as the fact that W3BCLOUD works within the...