The deal with Kensington Capital Acquisition Corp IV will fetch $430 million in proceeds for the combined entity, which will list on the New York Stock Exchange after the deal closes in the second half of this year.
Of the $430 million, $200 million will be raised as part of an additional equity financing and the rest will be provided by the special-purpose acquisition company’s (SPAC) trust account.
A rout in equity markets, declining investor interest in SPACs and tougher scrutiny from the U.S. securities regulator have in recent months forced several companies to cancel blank-check deals.
Even the companies that have successfully closed deals such as BuzzFeed Inc and Virgin
Holdings Inc have been torpedoed by investor withdrawals.
SPACs are listed shell firms that use the capital raised from an initial public offering to clinch a go-public deal with a private company.