Dune (DUNE) Completes Global Hydrogen Deal
Dune Acquisition Corporation (NASDAQ:DUNE) announced yesterday afternoon that it has closed its business combination with sustainable energy firm Global Hydrogen after shareholders approved the deal at a meeting on December 4.
The SPAC saw an aggregate of 97.48% of its trust redeemed, including redemptions from previous extension votes, leaving it with approximately $4.36 million post-vote.
Nonetheless, the combined company will now be renamed Global Gas Corporation and its Class A common shares and warrants are expected to start trading on the Nasdaq under the new ticker symbols “HGAS” and “HGASW,” respectively, on or about December 22.
Global Gas anticipates receiving a delisting notice from Nasdaq’s staff due to not meeting the initial listing standards of The Nasdaq Capital Market upon finalizing the business combination. The combined company plans to promptly request a hearing with the stock exchange to challenge its decision and aims to swiftly meet the required initial listing standards of the Nasdaq.
Dune adjourned its completion vote a handful of times since its original date of November 29, but used this time to secure a forward purchase agreement (FPA) ahead of the meeting.
Immediately prior to last week’s meeting, the SPAC signed an FPA with Meteora Capital Partners covering up to 950,000 shares. Meteora will be prepaid for such purchases and will receive up to 80,000 additional shares.
Last month, Dune modified its combination with Global Hydrogen. This amendment marked 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, were allocated for joint ventures, consulting purposes, or strategic business partnerships.
This recent 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%.
Dune initially announced the business combination with Global Hydrogen on May 15. New York-based Global Hydrogen is working to develop a business capturing industrial gasses from offtakers that can be converted into sustainable fuels.
Headquartered in New York, Global Gas is led by Founder and CEO William B. Nance.