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 afternoon that its stockholders approved its combination with German EV-maker e.GO at a special meeting held earlier today. Additionally, Athena Consumer’s warrant proposal to convert all outstanding warrants to 0.175 shares in the combined company was also approved. A total of 884,880 shares of Athena Class A Common...
October is set to be a quiet month for lock-up expirations with only four de-SPACs and four sponsors now open to trade their shares for the first time. The first customer is Bitdeer Technologies. Its shareholders and the Blue Safari sponsor both stand to gain the most out of this group from moving some of...
Graf Acquisition Corp. IV (NYSE:GFOR) announced in an 8-K this afternoon that its shareholders approved its combination with NKGen Biotech at a special meeting September 25. A total of 3,386,528 shares were redeemed in connection with the vote, leaving Graf IV with about $27.6 million in the tank and a final redemption rate of 84.3%....
Anzu Special Acquisition Corp I (NASDAQ:ANZU) has closed its combination with Envoy Medical and its shares and warrants are to begin trading on the Nasdaq under the symbols “COCH” and “COCHW” on October 2. The SPAC secured shareholder approval on September 27 and still has not divulged redemption figures. But, it went into the vote...
Mercato Partners (NASDAQ:MPRA) closed its combination with Brazilian software firm Nuvini this afternoon and its shares and warrants are expected to begin trading on the Nasdaq under the symbols “NVNI” and “NVNIW” on October 2. The combined company will continue to be led by its existing CEO and a seven-member Board including Mercato CEO Dr....