China, China, China….(click)

TKK Symphony is widely expected to price their $200 million China consumer/lifestyle SPAC tonight.  As a reminder, TKK Symphony is being led by Sing Wang, as Chairman and CEO.  Mr. Wang, who is currently Chairman of TKK Capital, a private equity/wealth management company, is also CEO and Director of CM Seven Star Acquisition Corporation.

TKK does offer a slight twist on the extensions via a 4-month extension on top of their stated 18 months to complete. In order to access that extension, there is no shareholder vote. Instead, TKK must issue to shareholders, via a dividend, another warrant to purchase one-half of one Share, essentially turning the deal into one Share + one FULL Warrant (rather than the initial one half of one Warrant), plus one Right.

China-focused SPACs are hot, so getting the IPO priced for TKK should not be an issue.  However, I’m curious to see how this one trades tomorrow versus the “Chardan-template” for China SPACs, which offer three 3-month extensions for $0.10/share for each extension.  TKK is offering warrants, whereas the other China-focused SPACs are offering cash.  As the saying goes, cash is king, but it will be interesting to compare.

Summary of terms located below:

• Focus:  Consumer/Lifestyle in China
• $10.00 unit comprised of one Ordinary Share + one Warrant (1/2 share) + one Right
• Each Right entitles the holder to receive one-tenth (1/10) of one Share
• Warrant call for redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
• 100% held in trust ($10.00 per share)
• 18 months to complete an acquisition + 4 month extension by vote (shareholders receive 1/2 warrant)
• Underwriter fees: 2.0% + 3.5% business combination marketing agreement.  EarlyBirdCapital is sole book-runner, I-Bankers Securities is co-manager.