Virgin Group Acquisition II in an SEC filing said it has secured two tranches of backstop funding totalling $50 million to support its proposed merger with Grove Collaborative, a sustainable consumer products company.
Corvina Holdings would invest $27.5 million in a PIPE at closing, and purchase another $22.5 million in stock. Corvina would still be able to redeem some or all of that stock up to an amount in excess of the SPAC’s cash at closing.
In return, Grove has agreed to waive the available cash condition for closing the deal. Additionally, the SPAC’s promote shares are no longer eligible for earn-outs under the original terms.
At the time of the deal announcement in December, the transaction was expected to provide up to $435 million in net proceeds, including an $87 million fully committed common stock PIPE from an affiliate of the sponsor of VGII and new and existing Grove investors, including Lone Pine Capital, Sculptor Capital Management, General Atlantic and Paul Polman, as well as the $348 million in proceeds from the SPAC’s trust account, net of transaction expenses and subject to reduction based on any redemptions. Read more.
