SPACInsider Logo
BlackRock Buys Into HumanCo Acquisition Corp. (HMCO) Sponsor Economics
by Nicholas Alan Clayton on 2022-02-18 at 11:45am

HumanCo Acquisition Corp. (NASDAQ:HMCO) revealed in an 8-K that it signed a series of financing agreements on February 15 that will transfer much of its private placement shares and warrants to BlackRock (NYSE:BLK).

CAVU Venture Partners III, an affiliate of HumanCo’s sponsor, sold 2,500,000 private placement units to affiliates of BlackRock. These were originally issued to CAVU in a private placement alongside HumanCo’s IPO in December 2020. HumanCo’s sponsor also sold 2,005,243 private placement warrants (24.8% of total) to BlackRock.

In exchange for taking over CAVU’s position, BlackRock is also set to receive 1,370,247 Class A shares for a purchase price of $4,900 at close. HumanCo is set to cancel an equal number of promote shares (19% of total) and these shares headed BlackRock’s way are subject to the same restrictions as HumanCo’s promote. These include a one-year lockup with an early release should the post-combination company trade at or above $12 for 20 of 30 trading days at least 150 days out from close.

It is unusual for a SPAC to make such moves before announcing a transaction, but they can also be interpreted as a sign of the times, given the crunch on the market at the moment. The concessions in sponsor economics aside, the change may also be positive for HumanCo in gaining frequent SPAC-backer BlackRock as fundamental partner in its deal to come. Perhaps this is also a signal of a pending deal announcement.

BlackRock has participated in 36 PIPEs since January 2021 with the average PIPE size of $555.8 million (note: not Blackrock’s investment size, but the total PIPE size). This potentially bodes well for HumanCo’s ability to secure a PIPE once it does announce. It has until December 11, 2022 to close a transaction.

Recent Posts
by Kristi Marvin on 2023-06-06 at 5:59pm

Tracking SPACs and all of their various types of “corporate actions” can be challenging. After all, a SPAC can postpone, adjourn, extend, complete, liquidate early, do a tender offer, and in some cases, one SPAC do all of those actions within its lifespan.  Naturally, this can be challenging to manage. More importantly, it can very...

by Marlena Haddad on 2023-06-06 at 11:34am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Byju skips payment on dollar loan and HNR affirms intent to purchase equity interests of Pogo Resources High-Flying Indian Startup Byju’s Skips Payment on Dollar Loan One of India’s best-known startups has skipped payment...

by Marlena Haddad on 2023-06-06 at 10:15am

Avalon Acquisition Inc. (NASDAQ:AVAC) announced in an 8-K this morning that it has entered into a prepaid forward purchase agreement with RiverNorth SPAC Arbitrage Fund, the purchaser, as it works to close its combination with financial services firm The Beneficient Company, or Ben. As part of the agreement, RiverNorth agreed to effect certain purchases of shares...

by Nicholas Alan Clayton on 2023-06-06 at 9:43am

Blue Ocean (NASDAQ:BOCN) has entered into a definitive agreement to combine with digital media company TNL Mediagene at a pre-money enterprise value of $275 million. TNL Mediagene holds the Japanese licenses for a number digital media properties as well as Taipei-based The News Lens. The combined company Is expected to trade on the Nasdaq once...

by Nicholas Alan Clayton on 2023-06-06 at 7:23am

Priveterra Acquisition Corp. (NASDAQ:PMGM) announced in an 8-K this morning that it plans to adjourn its special meeting to approve its combination with AEON Biopharma from noon today to the same time June 9. The SPAC plans to use this time to further engage with its shareholders as the ballot includes a variety of additional...

Privacy Policy|Terms Of Use
Copyright © 2023 SPACInsider, Inc. All Rights Reserved