Stellar/Phunware Release Shareholder Vote Results
by Kristi Marvin on 2019-01-03 at 8:57am

Stellar Acquisition III, now Phunware (PHUN), released the results of their shareholder vote last night and for the most part, the results were unsurprising.  1,813,487 shares of Stellar common stock exercised their right to redeem their shares for cash at a price of $10.64 per share.  This means that approximately $19.3 million was removed from the trust.

If you recall from Stellar’s proxy, there was $19.63 million held in trust as of November 12th, and with an additional month’s worth of interest earned, the total held in trust at combination was most likely closer to $19.7 million.  The press release further goes on to say that as a result of those redemptions, the Stellar trust account had only approximately $0.4 million immediately prior to Closing.

Basically, everyone redeemed.

However, if you look at Phunware’s share price, it’s currently trading at $14.26 and yet, the warrants are trading at $0.30.  Hmmm…that seems to be a major disconnect.  However, the facts are this:  None of the SPAC investors wanted to hold this share post-combination so nearly everyone redeemed. Furthermore, it would appear that none of the capital markets advisors were able to get the shares into the hands of new investors either.  Hence, Stellar kept needing to adjourn the vote until they could bring in the convertible preferred investor for $6.0 million.  Furthermore, if you look at the 8-k, they attached Phunware’s financial statements.   Phunware shows only $5.2 million in revenue for Q3, which is about 30% less than the same quarter in 2017, which showed $7.4 million….very curious indeed.

So if nobody wanted to hold this share pre-vote, how is it magically now worth $14.26 a week later?

There is very little liquidity, and that’s certainly contributing, but who is buying if exactly only one week ago there was zero demand? If something doesn’t make sense, that’s a huge caution sign.  Be careful out there….

 

 

Stellar/Phunware Release Shareholder Vote Results
Recent Posts
by Nicholas Alan Clayton on 2025-07-17 at 12:54pm

Cantor Equity Partners I (NASDAQ:CEPO) has entered into a definitive agreement to combine with Bitcoin Standard Treasury in a transaction that is worth about $4.8 billion. Bitcoin Standard Treasury aims to bring in capital from a number of equity instruments to build up one of the largest US-listed Bitcoin treasuries. The combined company is expected...

by Nicholas Alan Clayton on 2025-07-17 at 8:29am

At the SPAC of Dawn Several de-SPACs have made market-moving announcements recently and they haven’t forgotten to cash in on them. Fresh off of announcing $500 million strategic investment and partnership with Apple (NASDAQ:AAPL), rare earth miner MP Materials (NYSE:MP) has followed that up with a $500 million public offering, netting the company a cool...

by Kristi Marvin on 2025-07-16 at 5:33pm

Pyrophyte Acquisition Corp. II (NYSE:PAII.U) announced the pricing of its $175 million IPO and its units are expected to begin trading on the NYSE under the symbol “PAII.U”, Thursday, July 17, 2025. The new SPAC plans to focus its search on companies within the energy sector that constitute critical links in the supply chain of the...

by Nicholas Alan Clayton on 2025-07-16 at 8:18am

At the SPAC of Dawn Rare earth miner MP Materials (NYSE:MP) was one of the early winners of the 2020 SPAC boom, having picked up momentum following its 2020 deal with Fortress Value. But, the company’s news that it will become a major supplier of battery materials for Apple’s empire of electronic devices has sent...

by Nicholas Alan Clayton on 2025-07-15 at 7:20pm

Solarius Capital Acquisition Corp. (NASDAQ:SOCAU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “SOCAU”, Wednesday, July 16, 2025. The new SPAC plans to combine with a target in the asset management, wealth management or financial services industries. Solarius Capital’s management team...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved