Mercer Park Brand Acquisition Corp. (NEO: BRND.A.U) this morning provided an update on the share redemption and transaction details of its previously announced merger with Glass House Group.
The Toronto-based special purpose acquisition company shared that it now expects approximately US$195 million in cash prior to the closing of the transaction with Glass House. This includes the previously announced private placement transactions totaling $135 million expected to close concurrently with the transaction, part of which is a $50 million commitment from TPCO Holdings (NEO: GRAM.u).
The final closing amount is a far cry from the initial US$355 million that the company expected to have in cash upon closing when the transaction was first announced back in April. In May 2021, the company reduced that figure to a total of US$266 million in cash, which included an $85 million private placement. As a result, it appears that just $60 million of the initial $270 million in cash expected to remain with the company has not been redeemed by investors.
The company relayed that a total of 11.8 million additional class A restricted voting shares were deposited for redemption as of June 2, 2021 and not validly withdrawn prior to the June 7, 2021 deadline.
Mercer Park Brand Acquisition Corp. last traded at $10.07 on the NEO.
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