The SPAC is parting with 3,093,036 promote shares (58.2%) and 3,000,000 private warrants (64.4%) and HCG will pay up to $300,000 to entities that are owed fees from Compass Digital. The SPAC’s original team is also to see its remaining 1,645,398 warrant count be reduced based on the final cash consideration in this deal.
The new team is one with serial SPAC experience. Daniel Hennessy is to be appointed as chairman, with Thomas Hennessy serving as CEO, Nick Geeza as CFO, while Kirk Hovde, Matt Schindel and Joseph Beck are to join the Board.
Daniel Hennessy has steered six SPACs that bore his name since 2014, while Thomas ran Proptech I and Proptech II. He recently also took over two (NYSE:TWOA) in a similar transaction.
The Hennessy-named SPACs have completed four deals, but Hennessy V liquidated in December and Hennessy VI (NASDAQ:HCVI) is still searching for a target. Proptechs I and II, meanwhile, each completed deals and two announced a combination last week under Hennessy’s management.
For now, Compass Digital has an estimated $221.7 million in trust and has not yet had to seek an extension, but it likely will before the new team completes a deal as its combination deadline is October 19.