Digital mortgage lender Higher.com’s SPAC cope with Aurora Acquisition Corp. lately obtained a brand new lease on life, extending its timeframe to shut the transaction by the tip of Q3 2023. With out the extension the transaction would have needed to shut by at the moment.
Additional investigation has turned up an attention-grabbing reality within the interim: Even when the Higher.com SPAC mixture closes, the transaction has been all however neutered from a money perspective. From the corporate’s pursuant SEC submitting (emphasis TechCrunch):
In reference to the vote to approve the Extension Proposal, the holders of 25,751,449 Class A extraordinary shares correctly exercised their proper to redeem their shares for money at a redemption value of $10.2178 per share, for an mixture redemption quantity of roughly $263,123,592. As such, roughly 92.6% of the Class A extraordinary shares have been redeemed and roughly 7.4% of the Class A extraordinary shares stay excellent. After the satisfaction of such redemptions, the steadiness in Aurora’s belief account will probably be roughly $20,931,627.
Per the corporate’s authentic deal presentation, its tie-up Aurora Acquisition would offer round $278 million to the mixed firm, which the deck famous “assumes Sponsor backstop of 100% of the shares redeemed by present AURC shareholders pre-closing.”
As Higher.com ran headfirst right into a local weather of upper rates of interest and operational points — its layoffs at the moment are legendary for his or her callousness and blowback — it did handle to safe a portion of the opposite capital that was earmarked for the deal. That $750 million infusion, half of a deliberate $1.5 billion PIPE, or non-public funding into public fairness, offered Higher.com with a stronger steadiness sheet. That stated, November 2021 is much previously.