The SPAC disclosed that the two parties have decided to part ways due to the result of current unfavorable conditions in the public markets. Alec Gores, Chairman and CEO of The Gores Group and Chairman of Gores Holdings VIII stated in today’s press release, “After careful thought and consideration, we mutually determined that this action is in the best interest of all parties at this time given current market conditions.”
But, Gores still has a few months remaining to find and complete a business combination with a deadline of March 1, 2023.
The SPAC initially announced its $1.6 billion business combination with Footprint on December 14, 2021, but later amended the deal in September, lowering the target’s valuation by 37.5% to $1 billion. The parties also brought in new capital at that time by adding a standby equity facility worth up to $300 million and a $280 million facility designated for equipment purchases through 2023. Footprint was expected to have access to a minimum of $100 million under the standby equity facility with the ability to pull in up to $300 million at its discretion.
Gores VIII originally brought $345 million into the deal which it had supplemented with a $461 million PIPE. The PIPE included $150 million of Class C Preferred investment from Koch Strategic Platforms and the SPAC’s sponsor and 31,055,000 shares purchased at $10 per share.
Gilbert, Arizona-based Footprint develops and manufactures new molded fiber packaging solutions with the goal of eliminating plastics from the consumer marketplace.