DiamondHead Holdings investors voted overwhelmingly in favor of the SPAC’s merger with Great Southern Homes, a residential construction company. According to an 8-K filing, 12,793,642 shares were voted to approve the deal, with 29,597 opposed.
Redemptions totaling $1.1 million ahead of the merger vote left approximately $43.9 million in the DiamondHead trust. All told, DiamondHead has lost about 87% of its cash in trust on redemptions from previous votes since its $300 million IPO in January 2021.
As announced in October, the transaction was expected to deliver approximately $320 million in cash proceeds, net of transaction costs, as well as a $25 million commitment to purchase and not redeem DHHC public shares from the DHHC sponsor group, including Antara Capital. Those figures assumed no redemptions by the SPAC’s shareholders.
DiamondHead has convertible note and PIPE commitments for up to $155 million, plus the remaining cash in trust — more than enough to satisfy the $125 million minimum cash requirement to close. Read more.
