Legato Merger Corp II (NASDAQ:LGTO) announced it has now closed its combination with construction firm Southland Holdings and the combined company’s shares and warrants will soon trade under the symbols “SLND” and “SLNDW”, respectively.
Shareholders redeemed about 91.6% of Legato II’s shares at the completion vote, however. Because the deal did not include a PIPE, this drops the total cash proceeds to about $23.6 million, but the deal did not carry a minimum cash condition.
Southland’s plans may not have been contingent on much new cash in any case. According to the parties’ investor presentation, Southland has been EBITDA-positive since at least 2013 and it generated $99 million in EBITDA in 2021.
If the company hits $125 million in EBITDA for 2022, Southland shareholders stand to receive 3,448,276 shares through an earnout and 1,724,138 more if EBITDA meets or exceeds $145 million. These shareholders will get the same amounts for 2023 targets of $145 million and $165 million.
The parties announced their combination in May 2022. Grapevine, Texas-based Southland provides construction services focused on large infrastructure projects out of offices in 18 US states and Canadian provinces.
Last week, Southland was awarded a $102 million road and bridge extension project by the state of Louisiana to build a 28-span bridge over a bayou.
ADVISORS
- Legato II is represented by Graubard Miller
- Southland is represented by Winstead PC. D.A.
- Davidson & Co. and Thompson Davis & Co. are acting as capital market advisors to Legato II.
Crown PropTech (OTC:CPTKW) has entered into a definitive agreement to combine with rare earth mining firm Mkango Resources (TSX-V:MKA) at a pre-money equity value of $400 million. London-based Mkango is working to commercialize a chain of rare earth mining and refining facilities in Africa and Europe. The combined company is expected to trade on the...
At the SPAC of Dawn One of the biggest sources of uncertainty in the SPAC market in recent years has been regulatory changes, but new shifts could be in its favor. SEC Chairman Paul Atkins told CNBC yesterday that the commission would review the rules for SPACs after “rather controversial” changes to the rules passed...
McKinley Acquisition Corporation (NASDAQ:MKLYU) has filed for a $150 million SPAC to hunt for an innovative target company with an experienced financial team that has dabbled in SPACs before. The new SPAC is offering investors one right to a 1/10 share in each unit with no overfunding of the trust, but it could provide a...
At the SPAC of Dawn The rain of SPACs has continued with four expected to make their debuts during today’s trading sessions after pricing their IPOs overnight. The largest of these, EQV Ventures II (NASDAQ:EVACU), even managed an upsize, making it the largest SPAC IPO since Ares II (NYSE:AACT) pulled together $450 million in 2023....
EQV Ventures II (NASDAQ:EVACU) announced the pricing of its upsized $420 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EVACU”, Wednesday, July 2, 2025. The new SPAC plans to merge with an energy target involved in upstream exploration or production. EQV II’s management team is led by...