TLGY Acquisition in a proxy filing seeks to reduce the deposits its sponsor must make into trust for monthly deadline extensions as the SPAC works to finalize a deal with Verde Bioresins.
Terms of the current extension plan call for the lesser of $200,000 or 4 cents a share to be deposited per month. TLGY wants to cut this amount to the lesser of $100,000 or 3.3 cents a share.
Until shareholders have an opportunity to vote, any amount of the $200,000 expected to be paid in order to extend the deadline until Nov. 3, which is paid but unused (due to an additional extension payment, based on the updated monthly amount, if approved) may be deducted, on a pro rata basis, from future extension payments.
The Verde Bioresins deal announced in June has a pro forma equity value of $433 million.
Verde is engaged in sustainable product innovation and full-service bioplastics production with its bioresins, known as PolyEarthylene.
If approved, upon closing the combined company is expected to list on the nasdaq under new ticker symbol VRDE.
The proposed business combination implies an implied pre-money enterprise value for Verde at closing of $365 million, excluding earnouts consideration. The deal is expected to close in the second half of 2023.
TLGY raised $230 million in a December 2021 ipo, although redemptions in February erased about 75% of the trust.
Assuming no further TLGY redemptions, the proposed business combination would result in gross proceeds consisting of the $78 million in cash held in TLGY's trust. Additionally, Verde's controlling shareholder has committed to making a PIPE investment in TLGY at the closing of the business combination, subject to certain conditions. Read more.
Source: TLGY Wants to Lower its Monthly Deposits for Deadline Extensions on Verde Deal