DiamondHead Holdings in an 8-K today said it entered into private placement transactions with certain lock-up investors who purchased shares of the SPAC’s Class A common stock prior to March 16, under which the SPAC agreed to issue up to 421,100 additional shares in United Homes Group, the new name of the combined company once the SPAC’s merger with Great Southern Homes is completed. The purchase price is a penny a share, according to the filing.
DiamondHead shareholders approved the deal last week.
The SPAC also entered into subscription agreements with certain PIPE investors who are committed to buying 471,500 shares of the merged company’s stock at $10 a share.
All told, DiamondHead has lost about 87% of its cash in trust on redemptions from previous votes since its $300 million IPO in January 2021.
The deal with Southern Homes calls for a minimum of $125 million in cash to close. Read more.
