Live Oak Mobility Acquisition Corp. (LOKM) Announces LOI
by Nicholas Alan Clayton on 2023-02-22 at 5:24pm

Live Oak Mobility (NYSE:LOKM) announced that it has signed a letter of intent (LOI) to combine with an auto parts manufacturer about a week out from its extension vote.

For a transaction that is still non-binding, the parties have sketched out a fair amount of proposed details. The target, One Americas Holdings, would receive an enterprise value of $115 million and post-close equity value of $65 million in the deal.

Implicit in those values is some degree of pessimism in the level of redemptions Live Oak seemingly expects to incur at its upcoming March 2 special meeting, considering it currently has an estimated $257 million in its trust. Shareholders will be asked at the meeting to consider extending the SPAC’s transaction deadline to November 30.

But, it appears that Live Oak, which initially IPO’d in March 2021, does not plan to drag things on unnecessarily. According to its 8-K, the terms of any definitive agreement with One Americas would include Live Oak’s right to both terminate and liquidate itself prior to November 30 if the target does not complete required audits by May 15.

On its end, One Americas has been promised in the term sheet to receive at least $35 million in capital at closing after $13.5 million in transaction expenses. One Americas’ owners and management are also to receive half of the SPAC’s promote shares, with the remainder subject to price-based earnouts.

Of these, 500,000 (7.9%) would vest at a $12 price hurdle, with 150,000 going to company management and 350,000 to the sponsor. A further 750,000 (11.8%) would vest at $15 and 3,000,000 (47.4%) coming in 1,000,000-share tranches at $20, $25 and $30.

These are quite humble terms for the sponsor, but, once again, all of this is non-binding. The filing also notes that the sponsor plans to work on mitigating redemptions and may announce non-redemption agreements in the coming days. This teaser is likely to serve as the ice-breaker for those talks.

In that same vein, the 8-K clarifies that should Live Oak be required to pay the 1% excise tax on share buybacks for redemptions, this would be paid by the sponsor without using trust funds or earned interest.

 

Live Oak Mobility Acquisition Corp. (LOKM) Announces LOI
Recent Posts
by Nicholas Alan Clayton on 2025-07-18 at 8:16am

At the SPAC of Dawn During a week in which rare earth mining and space de-SPACs have seen major gains, another blast from the past is making serious waves in the market. EV battery developer QuantumScape (NYSE:QS) rose to a 52-week high of $13.79 yesterday and is cruising even higher in the pre-market. The company...

by Nicholas Alan Clayton on 2025-07-17 at 12:54pm

Cantor Equity Partners I (NASDAQ:CEPO) has entered into a definitive agreement to combine with Bitcoin Standard Treasury in a transaction that is worth about $4.8 billion. Bitcoin Standard Treasury aims to bring in capital from a number of equity instruments to build up one of the largest US-listed Bitcoin treasuries. The combined company is expected...

by Nicholas Alan Clayton on 2025-07-17 at 8:29am

At the SPAC of Dawn Several de-SPACs have made market-moving announcements recently and they haven’t forgotten to cash in on them. Fresh off of announcing $500 million strategic investment and partnership with Apple (NASDAQ:AAPL), rare earth miner MP Materials (NYSE:MP) has followed that up with a $500 million public offering, netting the company a cool...

by Kristi Marvin on 2025-07-16 at 5:33pm

Pyrophyte Acquisition Corp. II (NYSE:PAII.U) announced the pricing of its $175 million IPO and its units are expected to begin trading on the NYSE under the symbol “PAII.U”, Thursday, July 17, 2025. The new SPAC plans to focus its search on companies within the energy sector that constitute critical links in the supply chain of the...

by Nicholas Alan Clayton on 2025-07-16 at 8:18am

At the SPAC of Dawn Rare earth miner MP Materials (NYSE:MP) was one of the early winners of the 2020 SPAC boom, having picked up momentum following its 2020 deal with Fortress Value. But, the company’s news that it will become a major supplier of battery materials for Apple’s empire of electronic devices has sent...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved