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.