Avila Energy and Insight Acquisition today announced a business combination agreement with the market value of the combined company estimated to be $192.6 million.
If approved, upon closing Avila Energy intends to list on the Nasdaq.
Avila is an established producer, explorer, and developer of oil and gas in Western Canada.
Terms call for Avila’s shareholders to exchange their securities, including common shares, options, warrants and debentures, into the combined company based on a conversion ratio. At the time of signing, the number of fully diluted common shares of Avila outstanding was 150,540,414 common shares that will be exchanged for 12,580,000 common shares priced on March 30 at $10.30.
The remaining options, warrants, and debentures would be assumed by the new public company, the terms of which will be amended to reflect the same exchange ratio.
Depending on the number of redemptions by Insight’s public shareholders, (2,848,607 shares as of today), Avila shareholders will own the following interest in the post-closing combined company based on these examples:
- 100% Redemption (proceeds retained from trust of $1.25 million) 67.2% by Avila’s shareholders;
- 50% Redemption (proceeds retained from trust of $15.78 million) 62.4% by Avila’s shareholders;
- 0% Redemption (proceeds retained from trust of approximately $29.1 million) 57.9% by Avila’s shareholders.
Insight raised $240 million in a September 2021 IPO with plans at that time to focus on businesses in the FinTech or financial services industry. The NYSE delisted the SPAC’s warrants in January due to low price levels. Read more.
