Approximately 98% of the votes cast on the business combination proposal at yesterday’s special meeting were in favor of approving the deal. This comes as no surprise as Leo III announced Monday morning that it had already achieved a quorum with most votes in the approval column for its combination.
Although today’s press release did not disclose redemption amounts, LIII traded around $10 throughout its redemption deadline.
The SPAC previously extended the deadline for shareholders to make redemption decisions to November 16, and added $25 million to the PIPE in an effort to smooth out the vote. This additional PIPE ensured that Leo III would meet its minimum cash condition of $150 million.
The business combination is expected to close early the week of November 22. Upon closing, Leo Holdings III will change its name to Local Bounti Corporation and the common stock and warrants of the combined company are expected to begin trading following closing on the NYSE under the ticker symbols “LOCL” and “LOCL WS,” respectively.
Leo III initially announced its $757 million combination with Local Bounti in June. Hamilton, Montana-based Local Bounti sells leafy greens out of indoor farms designed with technology to achieve record harvest turnarounds and 90% less land and water.
Leo also announced the passing of the proposal to amend certain provisions of its warrants at its special meeting of warrant holders.
- Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Nomura Securities International, Inc. served as placement agents on the PIPE.
- Debevoise & Plimpton LLP served as legal advisor to the placement agents.
- Kirkland & Ellis LLP served as legal advisor to Leo.
- Morgan Stanley & Co. LLC and Nomura Greentech served as financial advisors to Local Bounti.
- Orrick Herrington & Sutcliffe LLP served as legal advisor to Local Bounti