GigCapital (GIG) Commences Tender Offer for Its Rights

GigCapital (GIG) announced this morning that it will be going forward with its cash tender offer for its Rights.  The offer is to purchase up to 14,873,256 Rights, which includes the 498,256 Rights included in the Founders Units, at a purchase price of $0.99 per Right, for a total aggregate purchase price of up to $14,724,523.44. Additionally, the tender offer, which commenced today, will run through November 6th.

However, if you read through the filed documents, you will also see that approximately 11,659,147 Rights holders will not be participating in the tender offer.  These “Non-Participating Holders” include Greenhaven, Kepos and Yakira, with which Gig had previously made arrangements (HERE, HERE, and HERE) as well as “Right holders who have advised Gig that they do not intend to tender their Rights“.  However, we do not know the amounts for each or who those “other Rights Holders” are.  Perhaps those are the Rights included in the Founders Units.  However, that does leave 2,715,853 Rights remaining that can participate, for a total aggregate purchase price of $2,688,694.

All told, today’s filings show that Greenhaven, Kepos and Yakira, have mostly mopped up Gig’s Rights and the tender offer is here to sweep away any remainders. However, remaining Rights Holders do not have to tender, so it will be interesting to see how many opt to do so. Regardless, this Tender Offer runs through November 6th, so we can also expect a shareholder vote to complete this combination to take place no earlier than that date.  However, it should happen soon after the tender is done.