Freedom Acquisition I in an 8-K filing said it has added almost $80 million in PIPE funding and a forward purchase agreement to help close its merger with Complete Solaria. The SPAC’s shareholders approved the deal Tuesday, although the SPAC disclosed days later that redemptions hit nearly $119 million, or nearly 99% of the SPAC’s cash in trust. The forward purchase agreement involves the sale of up to 9.9% of the SPAC’s shares outstanding.
Freedom I had already taken hits on its trust following a $345 million IPO in March 2021.
To cover the payout on various additional financing arrangements, the sponsor of Freedom I gave up almost 70% of its stake in the SPAC. A forward-purchase agreement with Polar, which agreed to hold onto 331,753 Class A shares, cost the sponsor 331,753 Class B shares.
The deal requires a $100 million minimum cash condition to close, which Freedom I should now be able to satisfy. The SPAC had also secured interim bridge financing of $40 million.
Complete Solaria offers leading solar technology, services and installation. Read more.
