CONX Corp. announced that it has changed the price of its tender offer to purchase up to 2,120,269 of its shares of Class A stock to $10.598120 per share. Earlier this month the SPAC said the price would be $10.585614 per share.
The increase reflects a higher than initially projected liquidation value of the company’s trust. CONX said. The tender offer expires at 5 p.m. Eastern on April 29.
The tender offer is being made in connection with the SPAC’s transaction with EchoStar Real Estate Holding, which has agreed to sell and lease back the corporate headquarters of DISH Wireless in Littleton, CO, for $26.4 million.
The parties signed a sale lease-back agreement, in which EchoStar will lease back the property from CONX. The agreement provides for an initial term of 10 years, a base rent payable during the first year of the initial term of $228,500 per month, which will escalate annually at a rate of 2% annually, and two five-year renewal options for the seller, with the base rent upon a renewal to be revised to fair market value and subject to the same annual escalation terms. All of seller’s obligations under the lease will be guaranteed by DISH Network.
The transaction is structured to qualify as an asset acquisition that would meet the requirements of a business combination, as defined in the SPAC’s articles of incorporation.
If the deal does not close by May 15, either party may terminate the agreement. Read more.
