Flame (FLME) Increases PIPE for Sable Offshore Deal

Flame Acquisition Corp. (NYSE:FLME) has once again increased the PIPE for its combination with Sable Offshore, totaling around $520.4 million, or 52 million shares at $10 per share, upon completion of the deal.

As of now, this marks the third largest PIPE assembled by a SPAC since 2022, followed by Rice II’s $565 million PIPE for Net Power (NYSE:NPWR) and Social Capital Suvretta III’s $575 million PIPE for ProKidney (NASDAQ:PROK). Flame previously noted that it intends to pursue additional commitments to expand the PIPE to up to $525 million.

Flame and Sable Offshore initially secured $71.5 million in PIPE commitments from unnamed investors at $10 per share and recently secured an additional $183.45 million, both at $10 per share.

The SPAC announced this evening that both of these PIPE commitments have since been increased by investors to the maximum number of Class B shares, from 40 million to 52.5 million.

The company then entered into additional PIPE agreements where investors agreed to purchase around 16.5 million shares at $10 million for a commitment of approximately $165.05 million. As a result, it has obtained total commitments of $348.5 million from the additional PIPE investors.

Additionally, Flame secured a $100 million PIPE from unnamed investors at $10 per share, which is expected to occur concurrently with the completion of its combination.

It announced its $883 million deal with Sable Offshore in November 2022. Sable Offshore is set to purchase the Santa Ynez Unit (SYU) offshore oil field and its associated onshore facilities off the coast of California.