Endurance Acquisition in an 8-K filing today disclosed that its shareholders voted yesterday in favor of merging with satellite company Satixfy. According to the filing, 87% of voted shares were cast in support of the deal.
There was no mention of redemptions, if any. However, earlier this week Endurance said it had secured a prepaid forward transaction with Vellar Opportunity Fund for the sale of up to 10 million shares to Vellar after the SPAC closes its merger with SatixFy. Set up essentially as a backstop against redemptions, Vellar would then be able to sell shares on the open market, with the newly merged company taking a 25% cut of the proceeds. Payments to the combined company from this arrangement would end once Vellar receives a 33.33% return on its investment.
Additionally, Endurance in August hacked 55% off the equity value of the Satixfy deal, bringing it down to $365 million from the initial $813 million at deal announcement in March. The SPAC’s sponsor also agreed to forfeit 800,000 SPAC Class B Shares contingent upon closing. Read more.
