TPB Acquisition I Inks FPA in Support of Lavoro Deal

TPB Acquisition I in an 8-K said it entered a forward purchase agreement under which the have agreed to hold an unspecified number of shares after the SPAC closes a merger with Lavoro,  an agricultural inputs retailer in . At the end of the 24-month maturity period the investors would be paid the redemption price interest, although investors are expected to try selling the stock on a best-effort basis ahead of the maturity date at a price above the redemption rate, according to the filing. The agreement is contingent on certain share-price thresholds.

The SPAC also said it may attempt to secure FPAs with other investors.

Shareholders are expected to vote on the Lavoro merger tomorrow.

As announced in September, the transaction was expected to be funded by up to $180 million from cash in the SPAC's trust and $100 million that TPB intends to raise through a at $10 per share. The deal has an implied initial enterprise value of approximately $1.2 billion.

If approved, upon closing Lavoro is expected to list on the Nasdaq with shares and trading under new ticker symbols LVRO and LVROW. Read more.

Source: TPB Acquisition I Inks FPA in Support of Lavoro Deal