SPACInsider Logo
Pure Acquisition Corp. Releases Warrant Tender Results
by Kristi Marvin on 2020-01-21 at 7:07pm

Pure Acquisition Corp. (PACQ), announced its warrant tender results this evening and a sizable number opted, in fact, to tender.

By way of background, PACQ first announced their combination with HighPeak Energy back on November 27th and as stated in their IPO prospectus, they intended to give warrant holders the option to tender their warrants at $1.00 per warrant.  PACQ previously offered warrant holders the opportunity to tender at their extension vote back in October.  However, at that time, Pure had 20,700,000 warrants outstanding and only 248,000 warrants opted to tender.  That left 20,452,000 warrants outstanding.

As of today’s announcement, 17,293,805 Public Warrants were validly tendered in the offer, leaving 3,158,195 warrants, or 15% of their original 20,700,000 warrants.

HOWEVER, Pure’s extension runs out as of February 17th, and since they still do not have a preliminary proxy on file for a shareholder vote to complete, that means they’re probably going to have to extend again come February.  That also means we’re going to have another Tender Offer for the warrants.  This is because (again, per the IPO prospectus) any time Pure amends and restates its certificate of incorporation, which is what you have to do with an extension of the deadline, they can commence a tender offer.  For clarity, see below from the prospectus:

“Our sponsor has also committed to offer or cause an affiliate to offer to purchase, at $1.00 per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem 100% of our public shares if we do not complete a business combination within 18 months from the closing of this offering. Any such purchases would occur in connection with the effectiveness of such amendment.”

So it comes down to whether Pure can get a definitive proxy together for a completion vote in time to circulate it among shareholders ahead of it’s February 17th deadline (even though they have yet to file a preliminary proxy), or….they extend again. An extension is the more likely scenario, so as a result, they’ll get another bite at the warrant apple with a third tender offer.

Keep your eyes peeled for a new proxy from PACQ shortly….


Recent Posts
by Marlena Haddad on 2023-03-22 at 5:46pm

Metals Acquisition Corp. (NYSE:MTAL) announced in an 8-K this afternoon that it has entered into a silver stream equity subscription agreement, redemption backstop, and copper stream equity subscription agreement to support its combination with Glencore’s (LON:GLEN) CSA Copper Mine. On March 20, the SPAC entered into a silver stream subscription agreement with Osisko Bermuda pursuant to...

by Nicholas Alan Clayton on 2023-03-22 at 11:58am

Stratim Cloud (NASDAQ:SCAQ) has entered into a definitive agreement to combine with oil and gas services provider Force Pressure at an enterprise value of $287.5 million, or 3.8x its 2022E adjusted EBITDA. The Seguin, Texas-based company provides drilling equipment and services primarily to the Eagle Ford, Permian and Haynesville basins in Texas and surrounding states....

by Marlena Haddad on 2023-03-22 at 11:34am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Electriq Power signs $300M agreement, Zapp reveals production version of i300 Carbon Launch Edition, and White & Case sues Colonnade II Electriq Power secures $300M to deploy solar + storage in California with ‘major U.S....

by Kristi Marvin on 2023-03-22 at 9:54am

Fighting for digital services market share in developed markets can be uphill sledding, but what if what you are offering has no legacy competitor to replace? This week, we speak with Greg Moran, Co-Founder and CEO of Zoomcar. Zoomcar runs a ride-sharing marketplace in India, where traditional short-term rental options are rare and it announced a $456...

by Nicholas Alan Clayton on 2023-03-22 at 9:15am

Digital World (NASDAQ:DWAC) announced this morning that it has replaced CEO Patrick Orlando with Eric Swider, who is stepping up from a director position. The move is the just the latest installment in a long, winding road that Digital World has taken since announcing a business combination with Trump Media and Technology Group (TMTG) all...

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