Social Leverage Acquisition I filed a preliminary proxy in which it seeks a deadline extension from Feb. 17 to May 17, 2023. The SPAC said more time is needed to finalize its proposed merger with W3BCLOUD Holdings, a storage and compute infrastructure provider for Web3. The transaction values the combined company at an enterprise value of $1.25 billion.
Founded in 2018, W3BCLOUD provides storage and compute infrastructure to power Web3’s decentralized economy.
If the extension is granted and the deal is ultimately approved, the company would receive up to $345 million in proceeds from the SPAC’s cash in trust, assuming no redemptions. Additionally, W3BCLOUD has received commitments for $40 million from ConsenSys, SK and others for new investments in connection with the transaction, and has an agreement with AMD for an additional equity investment of $10 million, each of which is subject to certain conditions. The parties also intend to raise up to $100 million post-announcement.
At closing W3BCLOUD would have $445 million in cash, which assumes $100 million of additional capital raised post-announcement, no redemptions and after expenses. Read more.
