Flame Acquisition announced that its shareholders voted in favor of combining with Sable Offshore Holdings, a Nova Scotia-based natural gas exploration consortium.
Flame said 11,263,464 shares were voted to approve the deal, which had an $883 million enterprise value at announcement in November 2022, while 361,858 shares were voted in opposition.
Redemptions leading up to the vote removed $1,573,962.89 from the trust (approximately $10.44 per share, leaving about $62.2 million.
The deal is expected to close tomorrow, with Sable shares and warrants trading on the NYSE under ticker symbols SOC and SOC.WS starting Feb. 15.
Flame had also raised a $520 million PIPE — one of the largest private investment packages put together by a SPAC in years. However, the SPAC noted in its latest filing that $125 million of the PIPE will not be funded because that investor faces difficulties realted to called capital from some of its foreign investors. To offset that loss, Flame Chairman and CEO James C. Flores invested $25 million, the filing states.
Flame said it still expects to satisfy the $150 million minimum closing condition.
The SPAC also secured a $623 million five-year term loan at 10% annual interest. The loan requires a $19 million deposit up front.
Sable has an agreement to acquire the Santa Ynez oil field in Federal waters off the California coast and associated onshore processing and pipeline assets from Exxon Mobil and Mobil Pacific Pipeline Company for $625 million. Read more.
