FG New America in an 8-K filing today said merger target OppFi agreed to waive the closing condition on the business combination agreement requiring at least $200 million in cash to deal the deal. The agreement was changed to reflect a new minimum of $83 million and to revise the investor rights agreement to permit the additional equity in the company and OppFi that will be issued in lieu of cash as a result of the waiver to be excluded from the lock-up provisions.
A shareholder vote on the deal is set for tomorrow.
Announced in February, the deal has an equity value of approximately $800 million.
Existing OppFi equityholders will initially retain approximately 62 percent ownership in the pro forma company. Current OppFi equityholders may also receive additional earn-out shares over three years if certain stock price targets are met.
If shareholders approve the deal, at closing the combined company’s common stock is expected to trade on the NYSE under OPFI.
Opportunity Financial is a fintech platform that serves the subprime consumer market. Read more.
