Friday evening filings are always the most interesting…
Pensare Aquisition Corp. (WRLS) announced this afternoon that the Company’s sponsor will reduce its contributions to the trust account so that the total monthly payment will be no greater than $200,000. To be clear, Pensare still intends to pay $0.033 per Public Share that is not redeemed to the Trust, but they are capping that amount at a maximum of $200,000 per month. So, if more than 6,060,606 Public Shares remain outstanding after redemptions, then the amount paid per share will be reduced proportionately.
As with most changes to terms, and especially when it’s related to an extension vote, there is usually a deliberate reason behind that change. Whether the SPAC chooses to tell you their reasons almost never happens and we are forced to speculate. Which is why it’s so refreshing to see Pensare be so forthright. To wit, Pensare also disclosed in their press release that, “The Company is currently in active discussions with a target company regarding a potential business combination that is anticipated to require an amount of funding less than the current balance of the Trust Account to consummate the business combination.“
Accordingly, Pensare took a page out of Gig1’s playbook and capped the contribution amount. However, the reasons why they are doing that is because they’re in the unfortunate position of having way too much money for their intended acquisition to make sense. This is why it’s always better to go smaller with a SPAC. You can always raise more money at combination if you need it, but you can’t give money back. Or at least you can by forcing redemptions, but that’s not the way you want to do it.
However, the candor is appreciated. It’s not the most ideal situation, but at least Pensare is including investors in their process.
Stay tuned for any further updates.
At the SPAC of Dawn The SPAC market could be primed to wake up from its Turkey Day slumber with a bang this week as both Shepherd Ave (NASDAQ:SPHAU) and Tavia (NASDAQ:TAVIU) have lined up to IPO and five more SPACs have scheduled votes. Late Friday also saw the Future Vision II (NASDAQ:FVNNU) announce a...
Terms Tracker for the Week Ending November 29, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This was a shortened holiday week, but SPACs still managed to put through a number of filings, which should usher in a busy first half...
Range Capital Acqusition Corp. (NASDAQ:RANGU) has filed to launch a $100 million SPAC with a broad approach, but with expertise in natural resources. The vehicle becomes the fourth SPAC that underwriter EarlyBirdCapital has put its name on so far this year, but it bears some different features than the rest of its 2024 slate. EarlyBirdCapital...
This holiday season is set to be an exciting one in the SPAC world as 10 sponsors and 11 de-SPAC’d companies can expect the gift of a lock-up expiration to mark it with. This makes it the busiest month for such activity in the second half of the year and at least a few parties...
At the SPAC of Dawn For Black Friday’s truncated trading session today, the broader action is likely to be focused on consumer stocks as investors gauge the scope of this year’s holiday spending surge. But, much of this will pass right by SPACs, because consumer has been a sector that has stymied teams more often...