Mobile commerce and angagement company Rezolve announced today that it has secured a $250 million capital commitment from Yorkville Advisors in the form of a share subscription facility. The commitment is in connection with Rezolve’s pending merger with Armada Acquisition I.
Under the agreement, Yorkville will provide Rezolve with up to $250 million in equity capital for a 36-month term following a public listing of Rezolve’s common stock. Rezolve will not be obligated to draw the full $250 million but can do so in part or in whole at its discretion. Rezolve will control both the timing and amount of all drawdowns and will issue stock to Yorkville on each draw down from the facility. Proceeds from the Yorkville facility will be used for working capital and general corporate purposes.
The funding may also help the SPAC and Rezolve close their merger. At the Armada-Rezolve deal announcement in December 2021, the combined business was expected to receive $150 million from Armada’s trust, which assumed no redemptions, together with approximately $40 million in additional investment proceeds. However, since then redemptions have whittled the SPAC’s trust down to about $36 million.
A favorable extension vote pushed the SPAC’s merger deadline back to August, although Rezolve in a press release said it expects to close the deal in the early first half of the year. Read more.
