Breeze Holdings in a proxy filing called a Sept. 22 meeting for shareholders to consider an extension proposal that would move the SPAC’s termination deadline from Sept. 26 up to June 26, 2024 in monthly increments.
Breeze last won an extension in March as it continues working to complete a deal with ammunition manufacturer TV Ammo, which would be renamed True Velocity if the merger closes.
Assuming no redemptions, the combined company would have an estimated post-transaction enterprise value of $1.21 billion, consisting of an equity value of $1.24 billion, $76.8 million in cash and $50 million in debt.
Cash proceeds raised will consist of Breeze Holdings’ $17.7 million cash in trust (before redemptions and payment of any transaction expenses) and $100 million in anticipated new capital, expected to be split between debt and equity.
If the deadline extension wins approval, the Breeze sponsor will deposit 3.5 cents a share into trust for each month required.
The SPAC originally raised $100 million in a November 2020 IPO with plans to target natural gas and crude oil companies. Share redemptions ahead of deadline extensions have eroded the SPAC’s cash in trust since then. Read more.
