Energem today announced a definitive $200 million standby equity purchase agreement (SEPA) with YA II PN, a partnership managed by Yorkville Advisors Global. The standby purchase agreement is in support of the SPAc’s proposed merger with Graphjet Technology, a Malaysian company that produces green, low-cost graphene, graphite and graphene-based materials.
Terms of the SEPA call for Graphjet Technology to have the right to issue and sell up to $200 million in ordinary shares following the deal closure, based on its funding requirements at any time during the 36 months.
Terms of the SPAC merger call for Graphjet investors to receive $117 million of cash in Energem’s trust, as well as rollover equity.
The proposed business combination is expected to be completed in early 2023, pending regulatory and shareholder approvals.
Rimon represented Energem on the SEPA and Nelson Mullins Riley & Scarborough acted as legal counsel to Graphjet. Read more.
