Determined warrant exchange value for equipment company

Determined warrant exchange value for equipment company

Stout's client, an equipment group, entered into a reverse merger transaction with a special purpose acquisition company (SPAC) whereby upon consummation of the transaction, our client became publicly listed on the NYSE. In connection with the transaction, warrants were issued with the right to acquire approximately 8.7 million shares of common stock of our client at a price of $11.50. The warrants expire five years after the completion of our client's initial reverse recapitalization or earlier upon redemption or liquidation. Stout was engaged to determine a range of value for the warrants to be used to determine an exchange ratio whereby the warrants would be exchanged for the company’s common stock in a potential redemption transaction.