Social Capital Hedosophia (IPOA) Releases Extension Vote Info

Early this morning, Social Capital Hedosophia Acquisition Corp. (IPOA), released the details of their shareholder vote to approve their extension deadline and the results were as expected.  IPOA now has an additional three months to close their combination with Virgin Galactic with a new deadline of December 18, 2019.

RESULTS

Per the 8-K, 3,771,178 Class A ordinary shares elected to redeem (at an estimated $10.367 per share), which resulted in $39.1 million being removed from the Trust Account. Furthermore, approximately 65,228,822 public shares will remain issued and outstanding, which means that the Trust Account is now currently estimated to hold $676.2 million, down from their estimated $715.3 million held in trust before the vote. As a reminder, IPOA did not offer any additional contribution to trust to extend those three months and instead will only continue to earn interest.

While the removal of $0.00 from trust would have been preferable, the loss of $39 million on a $715 million trust is only 5.0%.  It’s not that bad.  So now the real work begins as the IPOA/Virgin Galactic team move to close this deal.  Let’s see what happens.