SpringBig and Tuatara Capital Acquisition have again amended their merger agreement with additional funding through a convertible note and PIPE, totaling $66 million, while trimming the transaction valuation. The parties have also proposed issuing 1 million bonus shares to non-redeeming stockholders.
The amended and restated merger agreement reduces the total enterprise value of springbig to $275 million, representing an 8% reduction. Last month the SPAC hacked the target’s valuation down from the $500 million cited when the deal was announced last November.
The target company provides SaaS-based marketing solutions, mobile app experiences, and omnichannel loyalty programs to the cannabis industry.
The SPAC and springbig in a news release said they recognize that market conditions have changed since the proposed merger agreement was announced, and have agreed to amend the terms to reflect current conditions and thereby encourage public shareholders to support the transaction and retain their shares.
Up to $16 million in convertible notes will be purchased by an unnamed institutional investor. The $50 million in PIPE funding comes fgrom an affiliate of Cantor Fitzgerald. That’s in addition to the previously announced $13 million fully-committed PIPE anchored by Tuatara Capital and existing investors, including TVC Capital, Key Investment Partners, and springbig’s founder and CEO Jeffrey Harris. Read more.
