China, China, China….(click)
TKK Symphony is widely expected to price their $200 million China consumer/lifestyle SPAC tonight. As a reminder, TKK Symphony is being led by Sing Wang, as Chairman and CEO. Mr. Wang, who is currently Chairman of TKK Capital, a private equity/wealth management company, is also CEO and Director of CM Seven Star Acquisition Corporation.
TKK does offer a slight twist on the extensions via a 4-month extension on top of their stated 18 months to complete. In order to access that extension, there is no shareholder vote. Instead, TKK must issue to shareholders, via a dividend, another warrant to purchase one-half of one Share, essentially turning the deal into one Share + one FULL Warrant (rather than the initial one half of one Warrant), plus one Right.
China-focused SPACs are hot, so getting the IPO priced for TKK should not be an issue. However, I’m curious to see how this one trades tomorrow versus the “Chardan-template” for China SPACs, which offer three 3-month extensions for $0.10/share for each extension. TKK is offering warrants, whereas the other China-focused SPACs are offering cash. As the saying goes, cash is king, but it will be interesting to compare.
Summary of terms located below:
- Focus: Consumer/Lifestyle in China
- $10.00 unit comprised of one Ordinary Share + one Warrant (1/2 share) + one Right
- Each Right entitles the holder to receive one-tenth (1/10) of one Share
- Warrant call for redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
- 100% held in trust ($10.00 per share)
- 18 months to complete an acquisition + 4 month extension by vote (shareholders receive 1/2 warrant)
- Underwriter fees: 2.0% + 3.5% business combination marketing agreement. EarlyBirdCapital is sole book-runner, I-Bankers Securities is co-manager.
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