Globis (GLAQ) Closes Forafric Deal

Globis (GLAQ) Closes Forafric Deal

Globis Acquisition Corp. (NASDAQ:GLAQ) announced this morning that it has closed its combination with Moroccan agribusiness Forafric following a special shareholder meeting held yesterday.

Notably, Globis became just the second SPAC since May 1 to get to the finish line with less than 85% redemptions since May 1. A total of 9,612,536 shares (83.5%) were redeemed in connection with its completion vote, receiving an estimated $10.31 per share from Globis’ trust.

To get here, Globis postponed its earlier announced shareholder meeting on June 7 for two days to spend more time soliciting investors. It also announced a new forward purchase agreement (FPA) funded by $16.2 million placed in escrow. This will be used to purchase 1,500,000 shares from certain investors for $10.80 on the three-month anniversary of close. These investors may also sell these shares before this date for more than $10.80, in which case, Forafric will receive $10.80 for each of these shares from the escrow account.

The combined company’s shares and warrants are expected to begin trading today on the Nasdaq under the symbols “AFRI” and “AFRIW”, respectively.

Globis initially announced its $300 million combination with Forafric on December 20. Casablanca-based Forafric produces flour and semolina as well as secondary processing products such as pasta and couscous out of plants in North and Sub-Saharan Africa.