News: Microelectronics
30 November 2021
Navitas concludes $30m forward-purchase transaction
Gallium nitride (GaN) power integrated circuit firm Navitas Semiconductor of El Segundo, CA, USA and Dublin, Ireland has concluded a prepaid, forward-purchase transaction, resulting in the removal of restrictions affecting $30m of cash on the company’s balance sheet and 3,000,000 outstanding shares of Navitas common stock.
As previously disclosed, on 6 October, Navitas (then known as Live Oak Acquisition Corp II (LOKB)) entered into a prepaid forward-purchase agreement with an affiliate of privately held, SEC-registered alternative investment advisory firm Atalaya Capital Management LP. Per the agreement, Atalaya had the right to purchase up to 3,000,000 LOKB shares from shareholders who had redeemed shares, or indicated an interest in redeeming shares, prior to the closing of LOKB’s business combination transaction with Navitas. The agreement provided for Atalaya to sell the shares it purchased to Navitas within two years, at the redemption price in effect prior to closing. Atalaya also had the right to sell the shares to others during the two-year term, concluding the forward purchase obligations with Navitas in an amount corresponding to the number of shares sold.
On 18 November, Atalaya notified Navitas that it had sold all 3,000,000 shares covered by the agreement in open-market transactions. As a result, a total of about $30m has been remitted to Navitas, free of any restrictions.
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