Altus Power (NYSE:AMPS) announced this morning that it will redeem all public and private placement warrants at $0.10 per warrant and all must be exchanged by October 14 at 5 pm ET.
Holders may exercise their warrants at an exercise price of $11.00 or exchange them for 0.2763 shares per warrant. Altus Power last closed at $12.64, giving 0.2763 shares a value of about $3.49.
However, Altus Power shares have since dropped about -2.4% in the pre-market on the news, while its warrants (NYSE:AMPS.WT) have surged 14.3% to $3.86.
Whichever way the market winds blow moving forward, the move represents success on behalf of CBRE and Altus. The company is entitled to redeem these shares at this price only because the company’s shares have traded at or above $10 for 20 of 30 trading days, which is no small feat in this climate.
The exchange is expected to create an aggregate of 1,111,243 new shares, and all unconverted warrants will be made void following the October 14 deadline and holders will only receive the $0.10 redemption price.
The parties initially announced their business combination in July 2021. Greenwich, Connecticut-based Altus Power has built or acquired distributed generation solar facilities totaling about 265 megawatts (MW) and provides generation facilities for commercial, residential and government sites.
Most recently, it announced it generated $13.9 million in EBITDA from $24.8 million in the second quarter of 2022 and it expects $57 million to $63 million in EBITDA for the full year.
At the SPAC of Dawn There are signs that the macro environment for SPACs is gradually improving, but the Screaming Eagle team yesterday announced a non-redemption agreement for its combination with Lionsgate Studios. Such agreements are generally a lever one pulls when a SPAC expects a potentially turbulent closing. All in all, the terms for...
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...