Lionheart III in an 8-K said it entered into a standby equity purchase agreement (SEPA), following shareholder approval of its merger with Security Matters, an Australian tech company. The SEPA allows the combined company to sell up to $25 million in new shares to an unnamed investor.
The shares will be sold at a price equal to 97% of the lowest daily VWAP of the stock during the three consecutive trading days commencing on the investor’s advance notice date to Lionheart III.
As part of the SEPA, the investor is required to advance to the company $3.5 million in the form of convertible promissory notes, payable in two installements.
Lionheart III shareholders voted to combine with Security Matters Jan. 30, although the deal has not yet closed.
Announced in July at a valuation of $360 million, the deal was expected to generate proceeds of up to approximately $116 million, which assumed zero redemptions. The SPAC has not released redemption figures, if there were any. Read more.
