DiamondHead Holdings Adds $75M PIPE to Support Great Southern Homes Deal

DiamondHead Holdings today announced that it has entered into a Convertible Note Purchase Agreement among itself, merger partner Great Southern Homes and a group of .

The investors have agreed to purchase $80 million in original principal amount of convertible promissory notes and 744,588 shares of Class A stock in a PIPE. The aggregate gross amount of the PIPE is $75 million, according to a .

If DiamondHead shareholders approve the deal, the merged company will be renamed United Homes Group.

DiamondHead last week postponed the merger vote until tomorrow. The SPAC did not give a specific reason for the delay, but noted that redemptions “may be withdrawn at any time.”

Announced in October and assuming no redemptions, the transaction is expected to deliver approximately $320 million in cash proceeds, net of transaction costs, as well as a $25 million commitment to purchase and not redeem DHHC public shares from the DHHC sponsor group, including Antara Capital.

Great Southern Homes is a residential construction company. Read more.

Source: DiamondHead Holdings Adds M PIPE to Support Great Southern Homes Deal