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.
Athena Consumer Acquisition Corp. (NYSE: ACAQ) announced this morning that it plans to again adjourn its September 28 special meeting to approve its combination with German EV-maker e.GO without conducting business and will reconvene it at 4 pm ET September 29. The SPAC’s warrant holders are also to vote at at a meeting 30 minutes...
Integrated Wellness (NYSE:WEL) announced this morning that it has nixed its combination with vending machine operator Refreshing USA due to conditions of the combination remaining unfulfilled. The SPAC did not elaborate on what conditions those were, but the two sides have been past their initial outside date since July 31. Integrated Wellness still plans to...
Berenson Acquisition Corp. I (BACA) Signs Non-Redemption Agreements Berenson (NASDAQ:WTMA) announced in an 8-K this morning that it has entered non-redemption agreements with third parties that will secure 655,715 shares from redemption. The filing did not note what incentive, if any, these investors received for agreeing not to redeem. The move comes as Berenson is...
Crixus BH3 Acquisition Company (NASDAQ: BHAC) announced in a filing this afternoon that it is postponing its extension vote to Friday, October 6, 2023 at 9:00 a.m ET. The meeting was originally to be held Friday, September 29, but presumably it has been moved to account for amendments to its proxy which was filed today...
Welsbach Technology Metals Acquisition Corp. (NASDAQ: WTMA) announced in an 8-K this afternoon that it is postponing its extension vote one day to 2 pm ET September 29. The SPAC would not be able to postpone it much further as its current transaction deadline falls on a Saturday the next day, September 30. At the...