Executive Network Partnering, a SPAC led by former U.S. House Speaker Paul Ryan, disclosed in an 8-K that its shareholders voted in favor of combining with Grey Rock Investment Partners to form a newly named company, Granite Ridge Resources.
Redemptions totaling $393.4 million wiped out 95% of the SPAC’s $414 million cash in trust.
At announcement in May, the deal was valued at $1.3 billion. Terms called for Grey Rock to contribute oil and gas assets currently held in its Fund I, Fund II, and Fund III portfolios to Granite Ridge in exchange for equity. Grey Rock will not receive any cash proceeds as part of the transaction and will roll all of its equity into the pro forma company.
There was no minimum cash condition to close, although Granite Ridge intends to adjust its annual dividend proportionate to the SPAC’s share redemptions.
Granite Ridge and Grey Rock have agreed that during the term of the services agreement, Granite Ridge and any additional oil and gas-focused funds managed by Grey Rock shall have the opportunity to jointly participate in investment opportunities for upstream oil and gas assets, with 75% of any future transactions allocated to Granite Ridge and 25% of any future transactions allocated to oil and gas funds managed by Grey Rock. Read more.
