A special purpose acquisition company (SPAC), 26 Capital Acquisition Corp, announced today it offered 24,000,000 of units priced at $10 per share in its initial public offering (IPO), after filing and declaring effective a registration statement to the Securities and Exchange Commission (SEC).
Placing Shares and Warrants
Listed on the Nasdaq Capital Market, the units of 26 Capital will begin trading from Friday, January 15, while the IPO is expected to close Wednesday, January 20, subject to customary closing conditions.
Under the IPO, each unit of the company would consist of 1 share of Class A common stock and 1/2 of a redeemable warrant. A whole warrant would let the holder acquire 1 share of Class A common stock at a price of $11.50 per share, and only whole warrants could be exercised or traded.
Upon separation of the warrants from the shares, both classes of securities will start trading on the NASDAQ under different symbols, “ADER” for the shares and “ADERW” for the warrants.
26 Capital Acquisition, which would be led by Jason Ader as chief executive officer and John Lewis as chief financial officer, went public for variety of purposes, including effecting a merger, acquiring assets, exchange of capital stock, purchase of stock, reorganization or other similar business combination.
Gaming Sector Deals in Focus
Both Ader and Lewis are running SpringOwl Asset Management, an investment fund with a history of investing in a number of gaming businesses including Las Vegas Sands, IGT, Playtech and Bwin.Party, gaining a reputation for driving change in the businesses it elects to invest.
“SpringOwl’s and its predecessor’s investment team have developed extensive experience working with management teams of public companies, across market capitalizations and industries, in order to unlock stockholder value.”Prospectus, 26 Capital Acquisition Corp
While the SPAC may initially participate in a business combination with another business entity in any stage of its corporate evolution in any sector or industry, the SPAC’s primary interests would be high quality businesses in the gaming, gaming technology, lodging and entertainment, branded consumer and internet commerce sectors.
“Over the past eight years, SpringOwl’s team has been actively involved with dozens of public companies and has developed an extensive network of operators and advisors with whom it works.”Prospectus, 26 Capital Acquisition Corp
26 Capital Acquisition is making its IPO available only by means of a prospectus which can be obtained from Cantor Fitzgerald & Co, which would be acting as the sole book running manager for the public offering. The SPAC granted underwriters with 45 days to purchase up to 3,600,000 common stock and half-warrants at the initial public offering price to cover any over-allotments.