Broadstone (BSN) Shareholders Approve Vertical Deal
Broadstone Acquisition Corp. (NYSE:BSN) announced this afternoon that its shareholders have approved its combination with electric vertical take-off and landing (eVTOL) aircraft-maker Vertical Aerospace in a special meeting held earlier today.
This comes as no surprise as the SPAC pre-announced its shareholder approval in a press release yesterday. However, Broadstone did not disclose redemption amounts. BSN traded below $10 throughout its redemption deadline December 10, and fell 3.44% today, closing at $8.97.
Broadstone disclosed yesterday that this deal generated gross proceeds of at least $300 million including a fully committed $94 million PIPE drawing from key strategic investors including American Airlines, Avolon, Rolls-Royce, Honeywell, Microsoft’s M12 and Kouros. The transaction will provide required capital to certify the VA-X4, develop a manufacturing facility and build out Vertical’s commercial platform and scale production.
Towards the end of October, the SPAC secured an additional $205 million in funding for the Company, including $200 million in convertible senior secured notes bought by Mudrick Capital.
Broadstone expects to close the deal on Thursday, December 16, after which the combined company is expected to trade on the New York Stock Exchange under the symbols “EVTL” and “EVTLW”, respectively.
The parties initially announced their $1.8 billion combination on June 10. Bristol, UK-based Vertical Aerospace is developing a model of eVTOL planes designed to make carbon-free air travel and urban air mobility possible.
Holders of 27,362,346 ordinary shares, $0.0001 par value, were present at today’s special meeting, representing approximately 71.69% of the voting power. For a full list of tallies and disclosures, you may click here.
ADVISORS
- Winston & Strawn LLP is serving as legal advisor to Broadstone.
- Citi is serving as advisor to Broadstone.
- Latham & Watkins LLP is serving as legal advisor to Vertical.
- Barclays is serving as lead financial advisor and lead capital markets advisor to Vertical.
- Barclays and Citi acted as joint placement agents on the PIPE.