Flame Acquisition in an 8-K said shareholders earlier this week approved a deadline extension until March 1, 2024. This gives the SPAC six more months to complete its proposed merger with Sable Offshore, a Nova Scotia-based natural gas exploration consortium.
The SPAC had 15,620,245 shares outstanding going into the extension vote and said 2,328,063 shares were redeemed (about 15%). As a result, approximately $24 million ($10.31 per share) will be removed from the trust.
As announced last November, the deal had an $883 million enterprise value, which assumed no redemptions. At that time, the SPAC said it intended to pursue PIPE subscriptions totalling up to $400 million. Flame has also secured a $623 million five-year term loan at 10% annual interest. The loan requires a $19 million deposit up front.
As of last month, total PIPE commitments amounted to $74.5 million.
Sable has an agreement to acquire the Santa Ynez oil field in Federal waters off the California coast and associated onshore processing and pipeline assets from Exxon Mobil and Mobil Pacific Pipeline Company for $625 million.
