EF Hutton Acquisition I entered into a definitive securities purchase agreement with an unnamed institutional investor for a senior secured convertible note of approximately $15.8 million. The note will be issued at the closing of the SPAC’s proposed business combination with Humble Imports (d/b/a ECD Auto Design), which is engaged in the restoration and modification of Land Rover Defenders.
Announced in March, the transaction reflects an initial value for E.C.D. of $225 million.
Terms of the securities purchase agreement call for the SPAC to receive $13.7 million from the note, before expenses. The note accrues interest at an annual rate equal to the prime rate plus 5% per year, payable monthly in cash or, at the SPAC’s option, in securities — provided certain conditions are met — at the increased rate of the prime rate plus 8%.
The SPAC has formed a wholly owned Florida corporation that will merge with E.C.D. and E.C.D. would be the surviving corporation. Terms call for E.C.D. shareholders to receive 21 million shares of the SPAC’s stock at $10 per share and a cash payment of $15 million. Read more.
