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 investors.
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 press release.
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 The SPAC did not give a specific reason for the delay, but noted that redemptions “may be withdrawn at any time.”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.