7GC & Co. Holdings Inc. (VII) Completes Banzai Deal

7GC & Co. Holdings Inc. (NASDAQ:VII) announced this morning that it has completed its business combination with video engagement platform Banzai. Shareholders already approved the deal at a meeting held on December 13.

The combined company will now operate under the name “Banzai International, Inc.”. Beginning on December 15, Banzai will start trading its Class A common stock on the Nasdaq Global Market under the ticker symbol “BNZI” and warrants on the Nasdaq Capital Market under the ticker symbol “BNZIW”.

In a follow-up filing, 7GC & Co. noted that had about 99.5% final redemptions with the vote, leaving 112,210 shares remaining. Though high, 13 SPACs have had higher final redemption rates in 2023 and 19 were left with fewer post-vote shares.

To help ease the cash situation, 7GC & Co. agreed to a term sheet with Yorkville Advisors for a Standby Equity Purchase Agreement the day before the meeting, allowing the SPAC to sell up to $100 million of its Class A common stock.

On the same day as the SEPA agreement, December 12, Banzai and GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (GEM) also reached a binding agreement to terminate their previous Share Purchase Agreement from May 2022.

However, this termination retained the condition that Banzai must issue GEM a warrant to purchase 3% of its total equity interests. In exchange, GEM will provide Banzai with a $2 million convertible debenture that matures in five years and carries a 0% interest rate.

7GC & Co. inked its $380 million deal with video engagement platform Banzai in December 2022. Bainbridge Island, Washington-based Banzai provides a suite of virtual event management and analytical tools through a software-as-a-surface (SaaS) model.