Dune Acquisition Corporation (DUNE) Re-Strikes Global Hydrogen Deal

Dune Acquisition Corporation (NASDAQ:DUNE) announced in an 8-K this afternoon that it has re-worked its combination with sustainable energy firm Global Hydrogen.

The parties amended the purchase agreement yesterday, pursuant to which the aggregate share consideration to be paid to the sellers was reduced from $57.5 million to $48 million. The parties have not yet given an indication of what prompted the revision, but this drops the company’s equity value by about -16.5%.

Dune raised $172.5 million during its IPO in December 2020, and initially intended to combine with equities trading platform TradeZero in a deal valued at $556 million. But, its first proposed merger ended after the deal was terminated. Dune launched a lawsuit against its former combination target partner, while the SPAC’s Board recommended shareholders vote against the deal.

In December, Dune was able to recoup a $5 million settlement from TradeZero as part of the break-up.

After seeing 93.15% of its trust redeemed during a previous extension vote in June 2022, the SPAC is now left with $11.9 million in its trust and has a completion deadline of December 22.

It initially announced the business combination with Global Hydrogen on May 15 and has not yet supplemented it with additional outside capital. The combined company is expected to list on the Nasdaq under the ticker symbol “HGAS” once the deal is completed. New York-based Global Hydrogen is working to develop a business capturing industrial gasses from offtakers that can be converted into sustainable fuels.