Dune (DUNE) Amends Global Hydrogen’s Deal for a Second Time

Dune Acquisition Corporation (NASDAQ:DUNE) announced in an 8-K today that it has once again modified its agreement with sustainable energy firm Global Hydrogen.

This amendment marks a reduction in Global Hydrogen’s equity value from $48 million to $43 million, alongside an increase in the available shares of common stock that is for the Global Gas Corporation 2023 Long Term Incentive Plan, from 900,000 to 1,400,000. A portion of these shares, up to 500,000, can be allocated for joint ventures, consulting purposes, or strategic business partnerships.

This adjustment follows an earlier amendment made in August, which saw a decrease in the aggregate share consideration from $57.5 million to $48 million. While the specifics prompting this revision were undisclosed, it amounted to a reduction in the company’s equity value by approximately -16.5%.

Since the initial deal announcement, Global Hydrogen’s equity value has seen a total reduction of about -25.22%.

Dune Acquisition Corporation, which raised $172.5 million during its IPO in December 2020, initially intended to merge with equities trading platform TradeZero in a $556 million deal. However, the proposed merger fell through, leading to legal actions between Dune and its former partner. A settlement of $5 million was eventually reached in December.

Following redemptions of 93.15% of its trust during a previous extension vote in June 2022, the SPAC is currently left with $11.9 million in its trust fund and is scheduled to hold their completion vote on Wednesday, November 29.

Dune initially announced the business combination with Global Hydrogen on May 15. 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.