Stratim Cloud Acquisition in an 8-K said shareholders overwhelmingly approved a six-month extension on the SPAC’s merger deadline, but it came at a cost. Stratim said 18,744,981 shares of Class A stockwere redeemed, representing about 75% of the outstanding shares.
The SPAC now has unti Sept. to close a deal.
Stratim last month signed a binding letter-of-intent for a business combination with Force Pressure Control, a company in the energy services market.
Force provides pressure control-related rental tools and services required during frac and flowback well operations. The Company designs and assembles proprietary equipment that provides superior solutions for its clients and yields high margins, free cash flows and returns on invested capital. Force’s proprietary equipment is used in oil and natural gas production, as well as in geothermal “clean energy” applications.
Under terms of the LOI, the SPAC would acquire 100% of the equity interests of Force in exchange for 12 million shares of stock and $120 million in cash or notes. The deal under consideration includes an earnout of up to 3 million additional shares based on the combined company’s 2023 EBITDA exceeding certain levels.
Stratim raised $250 million in a March 2021 IPO, but redemptions have now pulled the trust down to about 63 million. Read more.
