Andretti Acquisition and its merger partner Zapata Computing entered into a purchase agreement with Lincoln Park Capital Fund, under which Lincoln Park has agreed to purchase up to $75 million in shares of the combined company over a 36-month period following the closing of the merger, according to a regulatory filing.
The surviving company will pay Lincoln Park a commitment fee of $1,687,500.
The SPAC’s $200 million deal with Zapata was announced in September. Two key members of the SPAC’s management team are racing legends Mario and Michael Andretti.
The pro forma equity value of the combined company (inclusive of the remaining cash in trust at Andretti Acquisition) is expected to be between $281 million and $365 million, depending on redemptions.
The SPAC raised $200 million in February 2022 with plans at that time to focus on opportunities that could “benefit from the iconic Andretti brand name in the broadly-defined automotive industry,” according to the original S-1 registration statement. Read more.
