SPACInsider Logo
Cartesian Growth Corp (GLBL) Adds Bonus Pool to Alvarium Tiedemann Deal
by Nicholas Alan Clayton on 2022-10-26 at 7:56am

Cartesian Growth Corporation (NASDAQ:GLBL) announced in an 8-K this morning that it has made a fourth amendment to its combination with wealth management firms Alvarium and Tiedemann, this time providing bonus shares to non-redeeming shareholders.

Under the changes, the up to 2,850,000 promote shares that Cartesian would have previously forfeited as a part of the deal will now be distributed to non-redeeming public shareholders. Already some amount of these shares was to be forfeited based on the extent to which redemptions exceed 50% and the total amount will thus be determined at close.

So far in 2022, the inclusion of bonus pools for non-redeeming shareholders has not proven to consistently dissuade redeemers. But, having more shares in circulation immediately following close may help stabilize trading volumes before lock-ups expire. Cartesian’s sponsor has also agreed to transfer 8,900,000 private placement warrants to the sellers.

The parties also agreed to move up vesting of 1,050,000 earnout shares destined for TIG entities involved in the deal and an equal number of those slated to be earned by Tiedemann Wealth Management. The distribution of these shares was previously contingent on hitting certain price targets but they will now be dispersed at close.

Existing target company shareholders classified as “inactive holders” are also to see their lock-up apply to just 50% rather than 100% of shares. This round of changes further built upon amendments filed in September allowing PIPE investors to purchase up to 3,625,000 options. The prices for these options has now been set at $10.50 for an option exercisable in the year between close and its first anniversary and $11.50 for options exercisable beyond the closing’s first birthday.

With this extra work put in, the parties have also increased their breakup fees. Should Alvarium terminate the deal, it must pay Cartesian $5.5 million and, if Cartesian terminates, it is to owe the sellers $11 million.

Previous amendments to the deal tweaked the company’s earnout and pushed forward its outside date as the $1 billion transaction was originally announced in September 2021. Alvarium Investments and Tiedemann Group serve as alternative asset managers to clients on four continents and were expected to have about $60 billion in assets under management by the end of 2021.

 

Recent Posts
by Nicholas Alan Clayton on 2022-12-08 at 2:28pm

Parsec Capital (NASDAQ:PCX) announced in an 8-K this morning that it has begun the process of liquidating its trust account, but the filing also curiously notes that the team is trying to carry on with its announced combination with Enteractive Media. The announcement matches what the SPAC said in its 10-Q filed November 18, that...

by Marlena Haddad on 2022-12-08 at 12:56am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Palihapitiya blames Fed for crushing the blank-check bubble, and Hong Kong is set to regain top-three IPO ranking in 2022 SPAC king Chamath Palihapitiya says the Fed crushed the bubble in blank-check firms...

by Marlena Haddad on 2022-12-08 at 12:50am

PHP Ventures Acquisition Corp. (NASDAQ: PPHP) has entered into a definitive agreement to combine with ConstrucTech company Modulex Modular Buildings Plc (“Modulex”) at a valuation of $600 million. UK-based Modulex manufactures 3D volumetric steel modular buildings and harnesses emerging technologies to meet housing and infrastructure needs. The combined company is expected to trade on the...

by Nicholas Alan Clayton on 2022-12-08 at 11:53am

7GC & Co.  (NASDAQ:VII) has entered into a definitive agreement to combine with video engagement platform Banzai at an enterprise value of $380 million, or 17.3x its revenue in the 12 months ending in September 2022. Bainbridge Island, Washington-based Banzai provides a suite of virtual event management and analytical tools through a software-as-a-surface (SaaS) model....

by Marlena Haddad on 2022-12-08 at 10:52am

AlphaTime Acquisition Corp. (NASDAQ:ATMC) filed its S-1 yesterday morning for a $60 million IPO as the second SPAC to file for an IPO in December thus far. The new SPAC has set its sights on businesses in Asia that have the potential to generate strong, stable, and increasing free cash flow, particularly businesses with predictable revenue streams...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved