A week after completing its merger with hospitality company Sonder, Gores Metropoulos II in an 8-K filing disclosed that stockholders redeemed 96% of the SPAC’s outstanding shares ahead of the vote.
The SPAC said $435.5 million in shares were redeemed. Gores Metropoulos II raised $450 million in a January 2021 IPO.
The parties in October lowered the enterprise value of the deal to $1.925 billion from the initial $2.2 billion.
A $200 million PIPE and a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors — as well as $110 million in additional capital from affiliates of Gores Metropoulos II and other investors — apparently salvaged the deal. The SPAC’s trust was left with $16.5 million following redemptions, according to the filing.
The redemptions were the largest ever for any SPAC managed by blank-check veterans Dean Metropoulos and Alec Gores. Read more.
