VPC Impact Acquisition Holdings III has amended its PIPE subscription agreement with Alameda Research Ventures to include $15 million in PIPE pre-funding to support the SPAC’s acquisition of banking app Dave.
Dave will issue a promissory note to Alameda. Dave’s obligations to repay the principal amount of the note would be discharged through the issuance of 1.5 million shares of VPCC at the closing of the business combination.
The combined company is expected to have a fully-diluted equity value on a pro forma basis of approximately $4 billion, assuming no redemptions. The deal is expected to result in over $375 million of cash on the balance sheet, reflecting a contribution of up to $254 million of cash held in VPCC’s trust account and a $210 million PIPE led by Tiger Global Management with additional participation from Wellington Management and Corbin Capital Partners.
Launched in 2017, Dave has expanded into a platform helping 10 million customers with banking, financial insights, overdraft protection, building credit and finding side gigs. Read more.
