Avalon Acquisition’s merger partner The Beneficient Company Group entered into a forward purchase agreement with RiverNorth SPAC Arbitrage Fund. RiverNorth has agreed to buy $25 million in Avalon shares that would have been redeemed ahead of today’s stockholder vote on the merger with Beneficient.
RiverNorth agreed to buy stock at $10.57 per share. The Series A Preferred Stock will convert to shares of Beneficient Class A stock, and RiverNorth will hold 2,956,480 shares.
The $25 million in proceeds will be disbursed from the Avalon trust following completion of the merger. At that time, $5 million will be disbursed to Beneficient, with the remaining $20 million to be disbursed to RiverNorth and held until the maturity date, which is two years post-closing.
The FPA involves two categories of shares: 1,064,333 FPA shares categorized as “purchased shares” and the remaining 1,892,147 FPA shares categorized as prepaid forward shares.
Dallas-based Beneficient provides liquidity, data, custody and trust services to alt asset holders. Beneficient’s end-to-end digital platform provides financing for liquidity and related services to a growing number of investors who are seeking liquidity for their alternative assets through regulated fiduciaries.
Avalon’terms call for Beneficient to receive $200 million in gross proceeds from Avalon’s cash in trust – although that assumes no redemptions.
Avalon was formed by Grail Partners in 2021. Read more.
