Footprint, a privately held firm focusing plant-based biodegradable products, and Gores Holdings VIII, Inc., an affiliate of The Gores Group (GRSHU), on Tuesday said that considering current market movements, the companies have agreed to slash the pro forma enterprise value of the combined firm Footprint to $1 billion, from $1.6 billion.
The companies also announced the receipt of additional capital to their previously announced merger deal.
In connection with the new announcement, Footprint secured around $300 million standby equity facility available upon the closing of the agreement. Footprint has access to a minimum of $100 million under the facility, and up to $300 million at the company’s discretion.
In addition, Footprint has received approval for an initial $280 million facility to fund equipment purchases through the end of 2023.
Koch Strategic Platforms has raised its prior investment and, along with Gores Sponsor VIII LLC, and others in the combined company. When added to the Koch Strategic Platforms’ prior investments in Footprint, the investment has resulted in around $290 million of capital being funded to Footprint.
This capital, combined with the PIPE proceeds, the standby equity facility, cash in trust, and the initial equipment financing facility, will deliver around $960 million in capital to Footprint in connection with the merger.
In the post-merger, new entity will be named Footprint International, Inc. and listed on the Nasdaq with the ticker symbol “FOOT.”
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