ACE Convergence Acquisition in a regulatory filing today said it will issue 2 million additional incentive shares to PIPE Investors on a pro rata basis as an incentive to subscribe. Additionally, the SPAC said 35.7% (2 million) of its sponsors’ earnout shares will now be subject to vesting conditions.
The SPAC will ask shareholders lateer this month to approve a deadline extension until October. A shareholder vote on the SPAC’s proposed acquisition of Tempo Automation, a software-accelerated electronics manufacturer, was postponed in May. ACE said it needed more time to finalize financing for the deal, which has a $919 million estimated post-transaction equity value.
Shareholders approved the first deadline extension in January, following the deal’s announcement last October.
Since then, ACE has upsized financing for the transaction to $200 million in convertible notes as well as a $100 million equity facility provided by an affiliate of Cantor Fitzgerald.
The redemption deadline is today. Read more.
