Deal with $6 million greenshoe conducted with two private placements
By Devika Patel
Knoxville, Tenn., March 19 - Andina Acquisition Corp. changed the terms of its initial public offering of units to raise $40 million with a $6 million greenshoe in a prospectus filed Monday with the Securities and Exchange Commission. The deal originally priced for $50 million with a $7.5 million greenshoe on Jan. 25.
The company will sell 4 million units of one ordinary share and one warrant at $10.00 per unit, with each warrant exercisable at $8.00 for three years. The units will be sold on a firm-commitment basis.
EarlyBirdCapital, Inc. is the representative of the underwriters.
Certain company shareholders and the company's counsel, Graubard Miller, have committed to buy 4.8 million warrants at $0.50 per warrant for $2.4 million in a private placement. These warrants are identical to those sold in the IPO.
The company has also agreed to sell 500,000 units at $1.00 per unit in a $500,000 private placement to EarlyBirdCapital. These units are identical to those sold in the IPO.
Proceeds will be used for working capital and expenses related to searching for a business combination.
Andina is a Bogota, Colombia, company seeking to acquire businesses in the Andean region of South America and in Central America with a principal focus on Colombia. It expects its units, ordinary shares and warrants to trade on the Nasdaq exchange under the symbols "ANDAU," "ANDA" and "ANDAW."
| Issuer: | Andina Acquisition Corp.
|
| Issue: | Units of one ordinary share and one warrant
|
| Amount: | $40 million
|
| Greenshoe: | $6 million
|
| Shares: | 4 million
|
| Price: | $10.00
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $8.00
|
| Underwriters: | EarlyBirdCapital, Inc. (lead)
|
| Pricing date: | Jan. 25
|
| Revised: | March 19
|
| Stock symbol: | Nasdaq: ANDAU, ANDA and ANDAW
|
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