After several false starts, scrambles for additional funding and two vote delays, Cerberus Telecom Acquisition disclosed today that its stockholders decided in favor of the merger with Kore Wireless.
The SPAC said 22,240,970 shares were redeemed ahead of the vote. Cerberus in a news release last week had revealed that 90.39% of its public shareholders had already redeemed their shares. However, after securing additional funds, Cerberus adjusted the redemption percentage to about 86%.
During the month of September, Cerberus said it secured additional sources of liquidity of up to $65 million for the post-closing public company. The funds will be made available by certain holders of preferred shares of the ultimate parent entity of KORE Wireless Group, electing to receive share consideration in lieu of $40 million of cash consideration, and by a commitment from Fortress Credit to provide up to $25 million in additional convertible debt financing.
When announced in March, the deal valued KORE at about $1 billion and the transaction was expected to provide approximately $484 million in cash to the combined company, including a $225 million PIPE.
Cerberus is the latest SPAC to see a deal nearly hobbled by shareholders hitting the exits en masse ahead of an acquisition. Read more.
