Golden Arrow Merger said it issued an unsecured promissory note for up to $510,000 to its sponsor for working capital needs.
The note bears no interest and is payable on the date the SPAC’s completes a merger. Prior to that, the sponsor has the option to convert any portion of the principal outstanding into warrants at a conversion price of $1.50 each, provided that the aggregate does not exceed 1 million warrants.
The SPAC in October announced a merger agreement with Bolt Threads, which produces sustainable biomaterials for consumer products. The deal has a $346.1 million pro forma enterprise valuation.
The transaction is expected to deliver at least $35 million of gross proceeds to the company, consisting of an interim bridge financing of up to $6.8 million, $5.5 million of which was funded in connection with the signing of the business combination agreement, as well as a fully committed PIPE of up to $28.7 million that will fund at deal completion. Additionally, Golden Arrow’s trust account of $21.5 million may deliver additional proceeds to the company at closing, depending on redemptions.
Berkeley, CA-based Bolt Threads develops sustainable solutions tailored for the consumer goods segment. One example is b-silk, a biobased and biodegradable substitute for silicone elastomers. Read more.
