Magnum Opus Acquisition in an 8-K filing announced that Binance Capital Management has agreed to invest $200 million in the SPAC’s PIPE in support of its proposed merger with Forbes.
Binance is replacing some of the existing PIPE investors, according to the filing. The PIPE itself, with Binance’s participation, will remain at $400 million.
Binance will also get to nominate two members to the board of the combined company and participate in the nomination of three more. The two Binance board members would also join an internal steering committee to advise on cryptocurrencies as part of the merged company’s digital media coverage.
As announced in August, the transaction is expected to raise approximately $600 million of gross proceeds consisting of the approximately $200 million of cash held in Magnum Opus’ trust, assuming no redemptions, and the $400 million PIPE. Again, assuming no redemptions, Forbes shareholders will own approximately 22% of the combined company at closing. Forbes will be capitalized with up to $145 million in cash. Read more.
